Azerbaijan sets up new registry for cigarette manufacturers

The implementation of a registry for businesses involved in importing and producing tobacco products is underway, Azernews reports.

During today's session of the Agricultural Policy Committee in the National Assembly, discussions on proposed amendments to the 'Law on Tobacco and Tobacco Products' yielded conflicting views.

As outlined in the proposal, state oversight of tobacco production and distribution will include registering businesses engaged in importing and producing tobacco products, establishing a registry for these businesses, and defining its operational guidelines.

The process of registering businesses engaged in importing and producing tobacco products, setting up the registry, and establishing its regulations will be determined by the relevant executive authority responsible for overseeing this sector.

Before this law takes effect, individuals involved in importing and producing tobacco products must register within six months of its enactment to continue their activities.

The conditions for registration of entrepreneurial entities engaged in the production of tobacco products are as follows:

Making an investment of no less than 34 (thirty-four) million manats in acquiring equipment;

Having no outstanding obligations in taxes and other mandatory payments in the Republic of Azerbaijan, as well as not being designated as a risky taxpayer according to the Tax Code of the Republic of Azerbaijan;

Possessing a document confirming ownership, use, or lease rights to the facility where the industrial activity is carried out as indicated in the tax authorities;

Having documents confirming the calibration of measuring instruments to be used for tobacco product production, as well as certificates of conformity with the requirements of the "Law on Technical Regulation" of the Republic of Azerbaijan, including devices, tools, measuring instruments, and test equipment;

Having a contract with an accredited testing laboratory in the relevant field for conducting quality and safety tests (in case the manufacturer does not have an accredited testing laboratory in the relevant field).

In accordance with this Law, entrepreneurial entities registered for the production of tobacco products must comply with the requirements set by the competent authority designated by the relevant executive authority regarding the quantities of local tobacco material (partly or completely stripped tobacco) to be used in the production of tobacco products.

The requirement to invest no less than 34 (thirty-four) million manats in acquiring equipment and the requirements for the use of local tobacco material (partly or completely stripped tobacco) in the production of tobacco products apply only to cigarette production.

The requirement to invest no less than 34 (thirty-four) million manats in acquiring equipment applies only to newly established entities and those newly registered for the first time.

In accordance with this Law, the production of tobacco products without registration is prohibited.

In case of violation of registration conditions (except for the condition of having no outstanding obligations in taxes and other mandatory payments in the Republic of Azerbaijan), as well as in cases specified in the "Law on Licenses and Permits," the registration of entrepreneurship entities engaged in the production of tobacco products will be revoked.

The conditions for registration of entrepreneurial entities engaged in the import of tobacco products are as follows:

Conducting the production of tobacco products for at least 1 (one) year on the territory of the Republic of Azerbaijan;

Having no outstanding obligations in taxes and other mandatory payments in the Republic of Azerbaijan, as well as not being designated as a risky taxpayer according to the Tax Code of the Republic of Azerbaijan;

Possessing a document confirming ownership, use, or lease rights to the facility where the industrial activity is carried out (if the entrepreneurial entity's activity is related to the industrial entity (facility)).

The requirement to conduct the production of tobacco products for at least 1 (one) year on the territory of the Republic of Azerbaijan applies only to the import of cigarettes.

In accordance with this Law, legal and natural persons who are not registered will not be allowed to import tobacco and tobacco products.

In case of violation of registration conditions (except for the condition of having no outstanding obligations in taxes and other mandatory payments in the Republic of Azerbaijan), as well as in cases specified in the "Law on Licences and Permits," the registration of entrepreneurship entities engaged in the import of tobacco products will be revoked.