/By AzerNews/

By Nigar Orujova

The State Customs Committee fully executed the forecast on the state budget proceeds in 2015.

Aydin Aliyev, the head of the Azerbaijani State Customs Committee, announced about this at a press conference dedicated to the outcome of 2015 and the upcoming challenges on January 29.

Aliyev said that the trade turnover volume increased by $60 million in 2015 compared to 2014.

“There were some difficulties in 2015, but despite this, the committee fully coped with the task and fully executed the forecast on the state budget proceeds,” he said.

The Committee fulfilled the forecast of deductions by 100.1 percent, by transferring 1.59 billion manats to the budget (an increase by 81.1 million manats or by 5.4 percent).

Aliyev went on to add that the growth of Azerbaijan’s foreign trade turnover volume remained stable in 2015 despite the devaluation of the manat.

Last year was also successful for the Customs Committee in fighting the customs fraud violations, he added.

“More than 8,600 customs offenses, 300 crimes, most of which connected with drug trafficking and smuggling, were registered in 2015,” he said. “More than 90 kilograms of drugs and 166 grams of dangerous psychotropic substances were seized in 2015.”

Freight carriages to pass without stops

All Azerbaijani railway customs checkpoints will be equipped with special facility to check the freight carriages without stopping, Aliyev said, noting that the system will start functioning from February 1.

The special German-made system will allow to inspect large freight carriages without stopping the train movement and without unloading the carriages.

Shahin Bahirov, Deputy Chairman of the Azerbaijani State Customs Committee, said that the same type of system has been installed on all vehicle checkpoints in Azerbaijan. “The system will be introduced on the railway in the direction of Georgia and Russia.”

Limit on duty-free online purchase may reduce

The committee also suggests reducing the limit on duty-free importation of goods through the international mail, Aydin Aliyev said.

Today, an individual can receive goods under $1,000 within 30 days by international mail notifications or transport companies without paying the customs duties.

“This amount is high enough for the mail. We have submitted proposals to the Cabinet of Ministers for reducing this limit,” he said. “About 2,500 tons of goods have been mailed to Azerbaijan in the first nine months of last year, and only 2.4 tones of them were declared. This is a real detriment to the customs revenues and the state budget.”

Limit for duty-free export of currency remains unchanged

The committee has no plans to make changes to the size of the duty-free export of currency from Azerbaijan, Aliyev added.

The Azerbaijani legislation presupposes that an individual may take out up to $10,000 cash from Azerbaijan, without payment of customs duty.

“We believe that given the current realities, the permitted size of the currency exported without payment of customs duties is quite sufficient. Today, all over the world, including in Azerbaijan, POS-terminals are using for cashless payments,” Aliyev said. “It should also be noted that traveling with a large amount of currency is dangerous, and for this purpose there are plastic cards.”

However, the limit on duty-free import of goods for personal use will not be reconsidered either.

Today, an individual may bring in goods not intended for production or commercial purposes, of a total value of up to $1,500 (each accompanied by a person under 18 years of age, with an additional amount of $ 500, without payment of customs duties).

“This limit is more than enough for the duty-free import of goods for personal use to Azerbaijan,” Aliyev said.

Moreover, investing companies exempted from customs duties on goods.

“The companies investing in Azerbaijan are exempted from customs duties on goods they bring to the country within 7 years,” Aydin Aliyev said, highlighting reforms in the fields of customs and measures taken to develop the activities of entrepreneurs.

Custom duty rates can be revised

The custom duty rates should be reconsidered in Azerbaijan, Safar Mehdiyev, First Deputy Chairman of the State Customs Committee, told reporters on January 29.

“The custom duty rates are not expected to be sharply increased,” he said, noting that the relevant proposals have been submitted for consideration to the Cabinet of Ministers.

“The change in customs duties does not mean only their increase and as a result – an increase in prices,” he said. “The tariffs for some goods will be reduced and for others – increased by pursuing one main purpose – to protect the domestic market."

Mehdiyev said that this decision was made to fulfill the forecast of customs revenues to the 2016-state budget amid the elimination of VAT on certain imported products, as well as providing the industrial parks with seven-year tax holidays.

Since 2001, Azerbaijan has been using a multi-stage differentiated tariff system with a rate of 0, 0.5, 1, 3, 5, 9 and 15 percent. At present, a number of imported goods are subject to the maximum rate of customs duty – 15 percent – to protect domestic products from the negative impact of foreign competition.