Azerbaijan to set legal framework for duty-free trade

Azerbaijan plans to define a special customs regime for duty-free trade and the scope of its application under proposed amendments to the Customs Code.

The provisions are included in a new proposed Chapter 33-1 of the Customs Code, which is expected to be discussed at a Milli Majlis session on May 1, APA reported.

Under the draft, duty-free trade is defined as a special customs regime allowing retail sales of goods in duty-free shops for personal use by individuals leaving Azerbaijan’s customs territory.

Foreign goods placed under the regime would be sold without import duties and taxes and without the application of trade policy measures. The sale of domestic goods under the regime would be allowed with the permission of customs authorities.

The procedure for placing goods under the duty-free trade regime would be determined by the relevant executive authority. Areas where duty-free shops are located would be considered customs control zones, and the placement and sale of goods would be carried out under customs supervision.

The issuance, renewal, suspension, restoration and cancellation of permits for duty-free shops, as well as monitoring compliance with their operating conditions, would be regulated under the law on licences and permits. A register of such shops would be maintained, published and regularly updated.

Customs control over goods placed under the duty-free regime would end after their re-export, placement under another customs regime, destruction or transfer to the state.

If a duty-free shop is liquidated, foreign goods would have to be re-exported or cleared for free circulation with all customs payments made. If this is not possible, the goods would be placed in temporary storage or in a customs warehouse.