Azerbaijan

Герб
 Флаг
 
  • Official languages: Azerbaijani.
  • Geographical location: is a country in the South Caucasus region of Eurasia at the crossroads of Eastern Europe and Western Asia. It is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west and Iran to the south. Geographically Azerbaijan is located in the South Caucasus region of Eurasia, straddling Western Asia and Eastern Europe.
  • Administrative divisions: Azerbaijan is divided into 10 economic regions; 66 rayons (rayonlar, singular rayon) and 77 cities (şəhərlər, singular şəhər) of which 12 are under the direct authority of the republic. Moreover, Azerbaijan includes the Autonomous Republic (muxtar respublika) of Nakhchivan.
  • Capital: Baku.
  • Governance: is a unitary semi-presidential republic. It's a member state of the Council of Europe, the OSCE, and the NATO Partnership for Peace (PfP) program. It is one of six independent Turkic states and an active member of the Turkic Council and the TÜRKSOY community. Azerbaijan has diplomatic relations with 158 countries and holds membership in 38 international organizations. It is one of the founding members of GUAM, the Commonwealth of Independent States (CIS) and the Organisation for the Prohibition of Chemical Weapons.
  • Population: 10.1 million.
  • Currency: Manat.
  • GDP: $54.6 billion dollars USA (2020).
  • Time zone: GMT +4.
  • Telephone code: +994.
  • Barcode: 476.

Content:

Socio-economic situation of the Republic of Azerbaijan

The main industries are oil and gas production, oil refining, chemical and petrochemical (mineral fertilizers, synthetic rubber, tires), food industry (including canning, tea, wine), metallurgy and mechanical engineering (including chemical and petroleum), electrical and electronic industry, ship repair, which in recent years have been characterized relatively high growth rates. Agricultural lands in Azerbaijan occupy about 4.8 million hectares, including 2 million hectares of arable land, 2.4 million hectares of hay and pastures, orchards and vineyards of more than 300 thousand hectares.

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Trade and economic cooperation of the Republic of Belarus with the Republic of Azerbaijan

Cooperation between Belarus and Azerbaijan in the trade and economic sphere is of a strategic nature. The Intergovernmental Belarusian-Azerbaijani Commission on Trade and Economic Cooperation is actively working.

Azerbaijan has created 5 own entities of the commodity distribution network and 45 dealers representing more than 50 Belarusian enterprises. 

Since 2017, the Azerbaijan Trading House has been operating in Minsk (2 Franziska Skaryna Str.), which, by the decision of the President of the Republic of Belarus, has been granted preferential treatment for the supply of food products to the Belarusian market.

A number of investment projects with the participation of Azerbaijani capital have been implemented in Belarus. As of January 1, 2022, investments from Azerbaijan in the amount of 60.2 million US dollars have been accumulated.

A joint assembly production of tractor equipment operates in Azerbaijan on the basis of the Ganja Automobile Plant.

In 2021, the trade turnover between Belarus and Azerbaijan amounted to 885.5 million US dollars. Exports amounted to 478.0 million US dollars, imports 407.5 million US dollars. The balance is positive 70.5 million US dollars.

In 2021, the main items of Belarusian exports to Azerbaijan were non-self-propelled rail or tram cars, motor rail or tram cars, tractors, fiberboard, butter, medicines, furniture, turbojet and turboprop engines, other gas turbines, sawn timber, beef.

In 2021, oil, propylene polymers, tomatoes, spirits, cooked or canned fruits and nuts, fresh fruits and vegetables, fruit and vegetable juices, potatoes (early) were imported from Azerbaijan.

TOP 20 promising positions of Belarusian exports to Azerbaijan

HS Code

Name

8605, 8603

Non-self-propelled rail or tram cars, motor rail or tram cars

8701

Tractors and semitrailer tractors

8504

Electrical transformers

8544

Insulated wires, cables

8502

Electric generator sets

3004

Medicines packaged for retail sale

4411, 4410, 4412

Fiberboard, particle board, glued plywood

4407, 4409

Longitudinally sawn timber, sawn timber

9403

Furniture and its parts

3902

Propylene polymers

72, 73

Metals and metal products

0201

Fresh or chilled beef

0405

Butter

0406

Cheeses and cottage cheese

0402

Condensed and dry milk and cream

0207

Meat and edible byproducts of poultry

0407

Eggs

7013

Dinnerware and kitchen glassware

2208

Strong alcoholic beverages

2402

Cigarettes containing tobacco

You can learn about the tenders held in the Republic of Azerbaijan and the conditions of participation in them on the websites https://tender.az, https://etender.gov.az.

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Conditions of access to the Azerbaijani market

The main organizational and legal forms of enterprises in Azerbaijan are LLC and joint-stock companies. The company can start working from the moment of state registration. Without official registration inthe Ministry of Taxes of Azerbaijan, the company cannot open a bank account, perform customs clearance of goods and etc.

After submitting the necessary documents within 3 working days, the Ministry of Taxes issues an extract from the state register and a tax identification number. There are no additional requirements for the creation of companies by foreigners in the country, except for the usual requirements for legalization and translation.

There are also no restrictions in the legislation regarding the share of foreign participation in joint ventures or investments.

In accordance with the Decree of the President of the Republic of Azerbaijan dated December 21, 2015 No. 713 "On certain licensing measures", import, export, transit transportation and production of precursors, import and production of plant protection products and agrochemicals are subject to licensing. In accordance with this Decree, all types of licenses are issued by the Ministry of Economy of Azerbaijan through the ASAN Xidmət Center.

Taxation of legal entities in the Republic of Azerbaijan is regulated by the Tax Code for the following types of taxes:

Income tax. ВAll resident and non-resident enterprises in Azerbaijan are payers of income tax. The company's profit is taxed at a rate of 20%. The object of taxation for a resident enterprise is the profit received from sources both in Azerbaijan and abroad. The object of taxation for non-resident enterprises is only the profit received from sources in the Republic of Azerbaijan. The reporting period for income tax is a calendar year. Taxpayers must file a declaration with the tax authorities no later than March 31 of the year following the reporting year. Taxpayers must make a final calculation and pay the tax before the deadline set for filing a tax year declaration.

Value added tax. The VAT rate is 18% of the value of each taxable transaction and each taxable import. The following residents and non-residents (legal entities and individuals) are considered VAT payers:

  • persons who have got up or are obliged to register as VAT payers;
  • persons importing goods to Azerbaijan subject to VAT — on such imported goods;
  • a non-resident person who performs works or provides services without registration for VAT purposes and is subject to taxation — for these works or services;
  • manufacturers of excisable goods, as well as persons engaged in housing construction.

Excise taxes. Excisable goods:

  • food alcohol, as well as all types of alcoholic beverages;
  • tobacco products;
  • petroleum products;
  • passenger cars (with the exception of special purpose vehicles equipped with special signs and equipment);
  • yachts for recreation or sports, as well as other floating facilities provided for these purposes;
  • imported platinum, gold, jewelry and other household products made of it, processed, sorted, framed and fixed diamonds.

Taxpayers:

  • manufacturers of excisable goods in the Republic of Azerbaijan;
  • importers of excisable goods;
  • residents of the Republic of Azerbaijan who produce excisable goods directly themselves or through a contractor outside Azerbaijan and are not registered as taxpayers at the place of production of such goods.

Producers of excisable goods must pay excise taxes to the state budget for taxable transactions for each reporting period no later than the 20th day of the month following the reporting one.

Simplified tax. The following persons can become payers of the simplified tax:

  • a legal entity whose volume of taxable transactions during a 12-month period is 200 thousand manats or less (about 115 thousand US dollars);
  • persons engaged in trading activities and (or) catering activities whose volume of taxable transactions during any month (months) of a consecutive 12-month period exceeds 200 thousand manats (about 115 thousand US dollars). The simplified tax is calculated at the following rates: trading activities - 6%; catering activities — 8%;
  • persons engaged in construction.

A legal entity paying a simplified tax is not a payer of VAT, income tax and property tax, and an individual is a payer of income tax and VAT.

The simplified tax is calculated from the amount of funds received from the provision of goods, works, services by payers of this tax, and from non—operating income at the following rate: for the city of Baku — 4%; for other cities and districts of Azerbaijan, Nakhchivan Autonomous Republic - 2%.

Fishing tax. The payers of the fishing tax are individuals and enterprises that extract minerals on the territory of Azerbaijan (including the country's sector of the Caspian Sea). The commercial tax on crude oil, natural gas and ore minerals extracted from the bowels of the earth is calculated from the wholesale price of them.

Road tax. Non-resident enterprises that own motor vehicles and (or) use them for the transportation of passengers and cargo are payers of road tax for the use of the country's highways. The tax on motor vehicles is established depending on the types of motor vehicles, carrying capacity, mileage on the territory of Azerbaijan, as well as the volume of motor vehicle engines. Individuals who own or use motor vehicles on the territory of the Republic of Azerbaijan pay an annual road tax to the state budget during the inspection of vehicles. Legal entities that own or use motor vehicles on the territory of the Republic of Azerbaijan as of the end of the calendar year, submit to the tax authority an annual declaration on road tax no later than March 31 of the year following the reporting year and transfer the tax accrued before that date to the state budget.

Property tax. Resident enterprises and non-resident enterprises engaged in entrepreneurial activity in the Republic of Azerbaijan through their permanent representative office, having an object of taxation, are property tax payers. Enterprises pay property tax at the rate of 1% of the average annual residual value of fixed assets.

Land tax. Land tax is paid by enterprises for land plots in the territory of Azerbaijan that are owned or used by them. At the same time, documents confirming the ownership or use of land plots are taken as a basis.

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Registration of business entities in the Republic of Azerbaijan

The main organizational and legal forms of doing business in Azerbaijan that can be used by Belarusian exporters are:

  • LLC - Limited Liability Company (with participation of residents or non-residents of Azerbaijan);
  • JSC - Joint Stock Company (with participation of residents or non-residents of Azerbaijan);

Representative Office or Branch
To conduct business in Azerbaijan, a company must undergo the procedure of state registration and entry into the state register in accordance with the Law of the Republic of Azerbaijan Dated December 12, 2003 No. 560-IIQ "On State Registration and the State Register of Legal Entities" (as amended by the Laws of the Republic of Azerbaijan dated 03.12.2004 No.793-IIQD, 28.06.2005 No. 970-IIQD, 30.12.2005 No.45-IIIGD, 07.02.2008 No. 543-IIIGD, 12.02.2010 No. 952-IIQD, 30.12.2011, No.284-IVQD, 12.06.2012, No.382-IVQD, 22.11.2013, No.820-IVQD, 17.12.2013, No.848-IVQD, 20.06.2014, No.991-IVQD, 17.10.2014, No.1078-IVQD, 28.11.2014, No.1116-IVQD, 06.10.2015, No. 1352-IVQD, 05.04.2016, No.190-VQD, 30.09.2016 No.324-VQD, 14.04.2017 No.619-VQD, 14.04.2017 No.586-VQD, 02.10.2017 No.796-VQD, 30.10.2018, No. 1303-VQD, 18.12.2018, No. 1393-VQD (intro. effective 07.02.2019), 18.12.2018 No. 1396-VQD (intro. effective 27.01.2019), 28.12.2018 No.1404-VQD (01.02.2019), 28.12.2018 No. 1447-VQD, 30.05.2019 No.1596-VQD, 09.07.2019 No.1641-VQD, 19.05.2020 No.99-VIQD, 30.06.2020 No.156-VIQD, 30.09.2020 No. 172-VIQD, 06.10.2020 No.185-VIQD, 03.12.2021 No.413-VIQD)

In accordance with the Decree of the President of the Republic of Azerbaijan dated October 25, 2007 No. 2458 "On measures to ensure the organization of the activities of business entities on the principle of a single Window", state registration is carried out by the Department of Registration of Commercial Legal Entities of the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan.

In accordance with the Law of the Republic of Azerbaijan dated December 12, 2003 No. 560-IIQ "On State Registration and the State Register of Legal Entities", state registration of commercial structures, including representative offices or branches of foreign legal entities, is carried out within three days.

After submitting all the necessary documents, the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan issues an extract from the state register and a tax identification number within 3 working days.

The State register of Legal Entities contains general information about legal entities and their founders. According to the provisions of the Civil Code of the Republic of Azerbaijan, the State Register of Legal Entities is open.

There are no additional requirements for the establishment of companies by foreigners in the country, and there are no restrictions in the legislation regarding the share of foreign participation in joint ventures or investments.

For participants from the CIS countries, apostilization and legalization of documents is not required in accordance with the Minsk Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal Cases (dated January 23, 1993) (there are exceptions depending on various legal actions).

A certificate of state registration or an extract from the state register is the main document for making a seal, stamp, letterhead, trademark, as well as opening a bank account and registering it with the relevant executive authorities of the Republic of Azerbaijan, no additional document is required for this.

Registration documents can be submitted electronically. Email address of the service:

https://www.e-gov.az
https://www.e-taxes.gov.az

Documents required for registration of LLC, JSC in Azerbaijan:

• Constituent documents (charter) - the charter of the structure wishing to obtain the status of a legal entity approved by the founder (founders) or his (their) authorized representative - the original.

• When appointing a legal representative - a copy of the identity document - the original.

• A document confirming the payment of the authorized capital in the funds - the original.

• Application (if the founder (founders) is an individual - his (their) surname, first name, patronymic, place of residence, number and date of issue of the identity document; if the founder (founders) is a legal entity - his (their) name, location and registration number) - a notarized original.

• The decision on the establishment of a structure wishing to obtain the status of a legal entity - the original.

• The decision on the approval of the charter of the structure wishing to obtain the status of a legal entity - the original.

• The decision on the formation of the management body of the structure wishing to obtain the status of a legal entity is the original.

• The document on payment of the state fee is the original.

• If the founder(s) is a legal entity - the charter is a notarized copy.

• If the founder (founders) is a legal entity - a certificate of state registration (extract from the state register) - a notarized copy.

• If the founder is an individual - an identity document - a copy (in paper form).

• A document confirming the legal address of the structure wishing to obtain the status of a legal entity (information on the location of the body carrying out permanent activities) - the original.

Registration of a Branch and Representative Office in Azerbaijan

A representative office and a branch in Azerbaijan are separate divisions of a foreign company that are not independent legal entities.

The branch performs the functions of a foreign legal entity, as well as represents and protects its interests.

A representative office is created solely to represent the interests of a foreign company and protect them.

The State control over the establishment of a Branch, the opening of a Representative Office, as well as the termination of their activities is carried out by the Department of Registration of Commercial Legal Entities of the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan.

Required documents:

  • Constituent documents of the company;
  • Extract from the trade register;
  • Certificate of residence from the tax authority;
  • The decision of a foreign legal entity to establish a foreign branch, representative office in the territory of Azerbaijan;
  • Regulations on a foreign Branch, Representative Office;
  • Power of attorney on granting the head of a foreign branch, Representative Office the authority;
  • Application in the prescribed form;
  • A document confirming the payment of the state fee.

Despite the current "one-stop shop" mechanism and transparent regulatory framework, in order to optimize the process of creating and organizing the effective work of their own entities of the commodity distribution network in Azerbaijan, it is advisable for Belarusian exporters to use the services of international consulting companies operating in the country, as well as to interact with Azerbaijani business partners.

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Protecting the rights of exporters and checking business reputation

In Azerbaijan, the legal protection of entrepreneurial activity is guaranteed by the Constitution, the norms of which have the highest legal force and direct effect throughout the country.

The Civil Code of the Republic of Azerbaijan defines the legal status of subjects of civil legal relations, the grounds for the emergence and procedure for the exercise of property rights and other property rights, regulates contractual and other binding relations, as well as other property and related personal non-property relations.

The procedural procedure for resolving economic disputes of the parties, taking into account pre-trial (claim) regulation, is regulated by the Civil Procedure Code of the Republic of Azerbaijan.

In addition, the Law of the Republic of Azerbaijan "On the Protection of Foreign Investments", along with the definition of their legal and economic incentives for attracting, provides for appropriate protection of the rights of foreign investors.

Bar Association of the Republic of Azerbaijan

Address: AZ1000, Azerbaijan Republic, Baku, S.Vurgun str., 32
tel. +994 12 567 14 95, +994 12 594 08 70 
E-mail:office@barassociation.az

Organizations engaged in business reputation verification

Название: «Expert-SM» Law & Consulting Company

Адрес: г. Баку, ул. Р. Бейбудова, 59

Представитель: Субхан Маммадов (директор)

Teл.: (+99412) 49355 56; 

Моб. тел.: (+99412) 493 55 56

E-mail: info@expertsm.com

Web: www.expertsm.com

Название: «Baku Law Centre» LLC

Адрес: г. Баку, ул. Физули, 49, «SKS» Plaza, 7-й этаж

Представитель: Анар Багиров

Тел.: (+99412) 480 00 88; 492 28 83; 492 03 57

Факс: (+99412) 447 42 71

E-mail: office@bhm.az

Web: www.bhm.az

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State regulation of export-import operations

Belarus and Azerbaijan have a Free Trade Agreement of March 31, 2004, under which the parties do not apply customs duties and other payments equivalent to customs duties in respect of exports and imports of goods destined for each other's customs territory. In this regard, the parties apply a zero duty rate in mutual trade.

When importing imported products into the customs territory of foreign countries, VAT is also paid. In Azerbaijan, the standard VAT rate is 18%.

According to the Rules of Regulation of import and export operations in the Republic of Azerbaijan, approved by the Decree of the President of the Republic of Azerbaijan dated June 24, 1997 No. 609 "On further liberalization of foreign trade in the Republic of Azerbaijan" (with amendments and additions), when importing goods, persons provide the following documents to the customs authorities:

  • concluded contract;
  • customs cargo declaration;
  • a document determining the commodity value of imported goods (invoice);
  • road transport documents;
  • a document confirming the origin of the goods;
  • certificate of conformity of the goods;
  • phytosanitary, veterinary, hygienic certificate for controlled products.

Azerbaijan is a party to the Agreement on the Principles of Conducting and Mutual Recognition of Certification Works of June 4, 1992, according to the provisions of which certificates and conformity marks of the CIS member states are recognized in the republic.

The procedure for the recognition of certificates of conformity in the CIS member States is established by the Rules on Interstate certification of SGP 36-2001 "Procedure for the recognition of certificates of conformity in the member States of the Commonwealth of Independent States".

In general, the procedure for recognizing certificates of conformity for products includes:

  • submission of an application for recognition of a foreign certificate of conformity and the documents attached to it;
  • analysis of the application and attached documents (their authenticity and comparability of data is established);
  • identification of the product (goods) for which the certificate of conformity is issued;
  • checking the availability of information for the consumer (labeling, operating instructions and safety requirements) in the state language;
  • making a decision on the possibility of recognizing a foreign certificate of conformity or justification for refusal and presentation of the proposed certification procedures.

There are also additional costs in the country, such as customs clearance fees. The full list of additional fees, as well as their rates, are available on the website of the State Customs Committee of the Republic of Azerbaijan https://customs.gov.az /.

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Features of business practice

The culture and traditions of Azerbaijan have had a direct impact on the peculiarities of business practice in this country, among which the following can be noted: 

  • The need to build personal relationships. Despite some progress towards Western corporate culture (influenced by Western education, corporate standards of investors, etc.), business remains a personal (often family) affair. The success of commercial negotiations will largely depend on the ability to build an effective personal relationship with a partner.
  • Decisions in business are made for a long time, almost always at the level of senior management (at the same time, as a rule, the last instance may not even be the director, but the business owner). The movement towards agreements is carried out carefully, very slowly. As a rule, it is mandatory to conduct the face-to-face stage of negotiations. Without a personal meeting, the start of product deliveries is problematic.The offer of assistance to a partner in calculating the economic effect of a transaction, developing a business plan, assisting in the selection of an assortment, forming a shipment batch for the supply of a wide range of products, and so on can somewhat speed up the process.
  • The establishment of contacts takes place in several stages. The first meeting is the acquaintance of business partners, the presentation of companies, the definition of a possible subject of mutual interests. The second meeting is a transition to a more specific content of business issues (subject to establishing personal contact). It may take several contacts to go directly to the discussion of the supply of goods and the terms of the transaction. For some projects, negotiations may take months or even years. 
  • In the process of negotiations on the supply of products, partners expect a mandatory stage of price reduction with the provision of discounts. The tactic of delaying the response to a commercial offer is often used in order to reduce the level of the initial offer. During the negotiations, in addition to the profitability of the offer, the emphasis on honor, respect, friendship, which play an important role in the course of making a final decision, is taken into account.

Typical mistakes of Belarusian exporters:

  • Orientation in work to written appeals, telephone conversations. 

It is advisable for Belarusian exporters to make extensive use of participation in exhibitions, visits, and invitations to visit the enterprise. It is also important to take into account the need to establish contacts (even protocol contacts) at the level of decision makers. "External effects" are of great importance for further contacts: the quality of product presentation, the presence of well-designed stands, colorful catalogs, business style of clothing, the level of company representation, etc.

  • The expectation of a quick response to the proposal, the pressure to make a decision.

Traditionally, it is extremely difficult to get an answer to commercial offers in a short time in Azerbaijan (while the absence of an answer does not mean a lack of interest). Exporters are not recommended to use pressure tactics to make a decision (constant reminders, setting deadlines for partners, etc.) – this often causes the opposite effect. The tactics of almost daily "naming", often without observing the established corporate hierarchy, have a particularly negative effect on further cooperation. A normal practice is an unobtrusive reminder of yourself, including on such occasions as congratulations on professional and public holidays, birthdays, memorable dates, as well as invitations of potential and existing partners to important events for the company, etc.

  • Wide use in the work of various plans, protocols, memoranda.

The state administration bodies and organizations of Azerbaijan treat various work plans and events quite freely and do not perceive them as binding documents. Moreover, plans, minutes of meetings, letters regarding the indication of specific deadlines for implementation not only do not give the expected effect, but even irritate. Often, the achievement of "ceremonial" agreements is not followed by practical actions. This fact is explained by the tradition of never saying "no" during negotiations. Even in the case of disinterest in the implementation of the project, it can be formally supported, but subsequently not implemented "for a number of objective reasons." At the same time, if there is interest, the partners will definitely move on to practical actions. 

  • The price offer "according to the price list" without further negotiations and discounts.

Price reduction in the transaction process is almost a mandatory stage and is determined by a number of factors:

  • centuries–old traditions of trade - bargaining is a part of culture, an integral attribute of making deals;
  • negotiations on individual products are conducted by authorized managers, who traditionally have to inform management about additional income due to discounts received.

It is recommended that when conducting negotiations, initially provide for the possibility of providing a discount. When bidding, use, including emotional motives (only for you, taking into account established good relations, although we give practically at cost, etc.).

  • Orientation in the promotion of products to the state order, agreements at various levels.

Due to the predominance of private companies in the real sector of the economy in Azerbaijan, the traditional orientation of Belarusian exporters when promoting products to an administrative resource or a state order does not bring results. Successful deliveries can be ensured only in the competition for the buyer. 

  • Frequent changes in product prices.

The change in the exporter's prices after reaching agreements on delivery negatively affects the reputation and often leads to the rejection of the contract. Exporters are advised, if possible, to fix export prices for a longer period. When concluding contracts, the most profitable delivery option will be the one in which the customs clearance and all operations related to the licensing system of the importing country will be performed by the importing company.

  • Not taking into account the specifics of the distribution of goods on the market.

When deciding on ways to promote goods on the Azerbaijani market, exporters need to take into account that the retail chain, as a rule, does not supply imports, preferring to receive goods cleared at customs from large importing companies, including those owning warehouses, transport. There is also a monopoly on certain goods on the market, as a rule, difficulties arise in promoting products without an intermediate importer. 

In connection with the above, it is recommended:

  • to supply products using a local subject of the TPS, to focus on large wholesale companies;
  • for goods with monopoly characteristics, the most promising is to establish contact with a dominant company in the market, or with a company with a significant market share. 

In this regard, it is necessary to take into account another feature of the local market: suppliers of products are very sensitive to the issues of so-called "double distribution". Importers have a very negative attitude to the expansion of the TPN by attracting other partners in Azerbaijan. In practice, this method of promotion often results in a drop in sales volumes due to the departure of the former partner, and the new one in practice is often unable to repeat even the sales volumes achieved by the former dealer. 

Exporters need to carefully and carefully approach the increase in the number of importers for one product, so as not to disrupt the established work of the TPN (even in cases when the dealer does not provide the desired dynamics of sales growth).

  • The predominance in the negotiation process of emphasis on formal grounds (contracts, regulations, etc.).

It should be borne in mind that importers of the host country perceive oral agreements with a partner as no less, and often more important conditions than the provisions of foreign trade agreements. There are often situations when an exporter made a reservation in an oral conversation that the contract specifies the maximum delivery time (for example, 60 days), but in practice we deliver in 30 days. In the future, for the Eastern partner, failure to fulfill an oral promise is a serious signal about the unreliability of the counterparty and may even lead to the loss of subsequent deliveries. Exporters are advised not to make verbal promises that run counter to the provisions of the contract.

  • The continuing attitude of some exporters towards the Azerbaijani market as a market with less high requirements for product quality in the presence of "extra" financial resources.

The Azerbaijani market does not lack supply for almost all commodity items. Brands of the world's leading manufacturers are represented in each niche, the service system is debugged. Today, Azerbaijan has created a positive image of the general brand "made in Belarus" as high-quality goods. At the same time, each fact of the supply of low-quality products has a very negative impact not only on the reputation of the supplier, but also on the supply of all Belarusian goods. Another illusion is the opinion that Azerbaijani partners do not lack money, and it is possible to offer goods without taking into account market conditions of prices. In practice, the attitude to financial resources is more than strict. At the same time, the factor of price and possible savings is one of the dominant factors both in private business and in public procurement.

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The applied system of certification of goods

There are more than 20 thousand interstate and national standards in Azerbaijan.

Work is underway to harmonize national legislation and existing standards in accordance with EU directives. In particular, a national program is being developed to improve the quality and safety of food products based on Codex Alimentarius standards.

In accordance with the Law of the Republic of Azerbaijan "On Standardization", production, import, sale, use and manufacture of products (works, services) that do not meet the requirements of national standards or are officially recognized in the country by international, regional (basin), interstate standards or standards of another state, as well as dangerous to life, health, are not allowed, human property and the environment.

In accordance with the Decree of the President of Azerbaijan dated June 24, 1997 No. 609 on approval of the Rules for regulating import and export operations in the Republic of Azerbaijan, it is required to submit a certificate of conformity of goods to the customs authorities for import operations.

The list of goods subject to certification is regulated by the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan dated July 1, 1993 No. 343 "On the phased application of certification of products (works and services)" as amended on May 12, 2015.

In accordance with the Decree of the President of the Republic of Armenia dated June 24, 1997 No. 609 on approval of the Rules for Regulating import and export operations in the Republic of Armenia, depending on the characteristics of imported goods, veterinary, phytosanitary and hygienic certificates must be submitted to the customs authorities.

In terms of preparing Azerbaijan for joining the World Trade Organization, a number of international standards have been adopted in the field of information technology, construction materials, agro-industrial complex, tourism and some other areas. Thus, in accordance with the adopted State Standard of Azerbaijan AZS 635-2012 "Procedure for certification of wheeled vehicles, items of their equipment and parts", from May 1, 2012, the import of passenger cars not equipped with an ABS system and at least one airbag is stopped. The decision was made in order to improve the environmental situation in the country and ensure road safety.

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Exhibition events planned for 2022

Date

Name

April 20 — 22

19th Azerbaijan International Exhibition "Transport, Transit and Logistics"

May 18 — 20

27th Anniversary Azerbaijan International Exhibition "Food Industry"

15th Azerbaijan International Exhibition "Agriculture"

June 1 — 3

27th International Exhibition and Conference "Oil and Gas"

10th Caspian International Exhibition "Energy and Alternative Energy"

September 6 — 8

Azerbaijan International Exhibition "Protection and Security"

September 22 — 24

14th Azerbaijan International Exhibition "Education"

October 5 — 9

8th Azerbaijan International Book Exhibition

October 19 — 21

27th Anniversary Azerbaijan International Exhibition "Construction"

14th International Exhibition "Heating, Ventilation, Air Conditioning, Water Supply, Plumbing and Swimming Pools"

2nd Azerbaijan International Exhibition "Revival and Restoration of Karabakh"

November 3 — 5

Azerbaijan International Exhibition "Healthcare"

Azerbaijan International Exhibition "Beauty and Aesthetic Medicine"

Detailed information about these events and conditions of participation in them can be obtained on the websites iteca.az and ceo.az.

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Статья подготовлена на основании информации Национального центра маркетинга и конъюнктуры цен Министерства иностранных дел Республики БеларусьПосольства Республики Беларусь в Азербайджанской  Республике, а также сведений из иных источников. Данный материал не ориентирован на какую-либо определенную аудиторию по отраслевому или иному признаку. В этой связи информация  может  быть  полезной  для тех, кто уже давно работает на  рынке Азербайджана и кто только собирается приходить на данный рынок. В любом случае будем благодарны за вопросы, отзывы и пожелания по дальнейшему развитию данного материала. Все они будут рассмотрены и, по возможности, учтены. Если у Вас есть информация, которая может быть интересна и полезна посетителям данной страницы, напишите нам.

При использовании материалов данной статьи обязательна ссылка на портал www.export.by.

С наилучшими пожеланиями,

Администрация портала www.export.by

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This article has been prepared on the basis of information provided by the National Centre for Marketing and Price Study of the Ministry of Foreign Affairs, and the Embassy of the Republic of Belarus in the Republic of Azerbaijan, and taken from public sources. The information presented herein is for informative purposes only. In this regard, it may be useful for the companies, which have been working in Azerbaijan for a long time, as well as for those, which are going to enter this market. Any questions, feedbacks and comments concerning this article are welcome. All of them will be fully considered and taken into account, if possible. If you have any information that may be interesting and useful for the visitors of this page, please write to us.

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