DECISION OF ECONOMIC COUNCIL OF COMMONWEALTH OF INDEPENDENT STATES

of September 12, 2008

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 place in a month the specified Overview on the website of Executive committee of the CIS on the Internet.

EXECUTIVE COMMITTEE OF 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 State Parties of the CIS, their influence on development of mutual trade.

1. Mode of trade policy

1.1. 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.

1.2. 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.

1.3. Regulatory framework

Laws of the Azerbaijan Republic:

Customs legislation:

- "About the Customs tariff" N 1064 of June 20, 1995;

- "About approval of the Customs code of the Azerbaijan Republic" N 311-IQ of June 10, 1997;

- "About further liberalization of foreign trade in the Azerbaijan Republic" the Presidential decree of the Azerbaijan Republic N 609 of June 24, 1997.

During 2007 the following Resolutions of the Cabinet of Ministers of the Azerbaijan Republic were accepted:

- "About modification of the Resolution of the Cabinet of Ministers of the Azerbaijan Republic "About rules of use of system of customs valuation of the goods imported on customs area of the Azerbaijan Republic and exported from this territory" N 7 of January 12, 1998" N 159 of October 6, 2007;

- "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" N 80 of April 12, 2001" N 189 of November 27, 2007;

- "About approval of the Procedure for determination of the country of goods' origin" N 190 of November 29, 2007;

- "About modification of the Resolution of the Cabinet of Ministers of the Azerbaijan Republic "About the Inventory, exempted from the value added tax when importing to the territory of the Azerbaijan Republic" N 11 of January 31, 2005" N 220 of December 30, 2007.

In Azerbaijan tariff restrictions in case of commodity import from the Republic of Kazakhstan and the Russian Federation (the relevant bilateral Protocols are signed), the term of cancellation of the operating withdrawals - are applied on January 1, 2012.

The inventory, falling under withdrawals, includes the following goods:

------------------------------------------------------------------
|  N  | Код ТН ВЭД |         Название раздела, группы,           |
| п/п |    СНГ     |        подгруппы товарной позиции           |
|----------------------------------------------------------------|
|При импорте из Республики Казахстан                             |
|----------------------------------------------------------------|
|1.   |2207 10 000 |Спирт этиловый неденатурированный с          |
|     |            |концентрацией спирта 80 об.% или более       |
|-----+------------+---------------------------------------------|
|2.   |2208 90 910 |Спирт этиловый неденатурированный с          |
|     |            |концентрацией спирта менее 80 об.% в сосудах |
|     |            |емкостью 2 л и менее                         |
|-----+------------+---------------------------------------------|
|3.   |2208 90 990 |Спирт этиловый неденатурированный с          |
|     |            |концентрацией спирта менее 80 об.% в сосудах |
|     |            |емкостью более 2 л                           |
|-----+------------+---------------------------------------------|
|4.   |2402 20     |Сигареты, содержащие табак                   |
|----------------------------------------------------------------|
|При импорте из Российской Федерации                             |
|----------------------------------------------------------------|
|1.   |2207        |Спирт этиловый неденатурированный с          |
|     |            |концентрацией спирта не менее 80 об.%,       |
|     |            |этиловый спирт и прочие спирты               |
|     |            |денатурированные любой концентрации          |
|-----+------------+---------------------------------------------|

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