Azernews.Az

By Kamila Aliyeva

The Azerbaijani customs authorities should support entrepreneurship in the country said Niyazi Safarov.

The Deputy Economy Minister made the remark at a round table meeting titled “Simplification of Customs Clearance Procedures for Export-Import Operations in Industrial Parks - Green Corridor” was held in Baku on July 31.

In particular, this refers to residents of industrial zones, according to Safarov.

“Every year, residents of industrial zones increase imports of equipment and raw materials. The issues of customs clearance are very important. Customs service should support entrepreneurs, and for this purpose we are holding discussions. Our goal is to increase transparency, reduce the number of [customs] procedures, increase the efficiency of the process and expand the use of electronic services,” he said.

The minister also added that an increase in the turnover of industrial parks is expected in the near future.

During a roundtable meeting, Azerbaijan's Sumgait Chemical Industrial Park LLC, Balakhani Industrial Park LLC, the Agency for Development of Small and Medium-Sized Enterprises and Green Corridor CJSC signed a memorandum of understanding.

The document envisages cooperation in simplification of export-import operations for industrial parks.

While speaking to reporters, Nazim Talibov, director general of the Sumgait Chemical Industrial Park, said that the introduction of the “Green Corridor” system will help residents of industrial parks in Azerbaijan greatly simplify the procedures for conducting export-import operations.

Today there is a need to introduce such a system in the country, according to Talibov.

“Production has already been established in 75 percent of the total area of ​​industrial parks in Azerbaijan. According to initial estimates, the export freight turnover of Sumgayit Chemical Industrial Park alone is estimated at 1.8 million tons per year. If you add other industrial parks, this figure will be more than two million tons a year. In this regard, there was an objective need for simplification of customs procedures for residents. The “Green Corridor” system will help us in this,” he said.

This system, according to Talibov, will allow the delivery of goods to the destination, bypassing the customs terminal. The customs authorities can check up to 10 percent of the total cargo.

“This prevents the loss of time, reduces the costs of entrepreneurs. The signing of the relevant memorandum [between Sumgait Chemical Industrial Park LLC, Balakhani Industrial Park LLC, the Agency for Development of Small and Medium-Sized Enterprises and Green Corridor CJSC] was the first step towards implementing the system in our industrial parks. Naturally, certain procedures must be performed for this. Given that the goods are delivered to warehouses of entrepreneurs without verification, there are certain obligations and rules. The mechanism is built on mutual trust between customs officials and entrepreneurs,” said the director general of the park.

He also pointed out that a logistics center with an area of 10 hectares will be established in the territory of the Sumgait Chemical Industrial Park.

“This logistics center will be able to support the “Green Corridor” project. It will be located on 10 hectares of the park. At present, the work connected with design and estimate documentation has been completed. Actually, the construction of the center will begin in 2019. The cost of the project has not yet been determined,” he said.

The director general noted that this logistics center will support the residents of the park in carrying out export-import operations.

“The availability of such a logistics center will help the residents to improve the rationality and efficiency of export-import operations. The logistics center will get access to the railway, which is currently being laid to the park,” Talibov said.

Sumgayit Chemical Industrial Park is located on the territory of 506 hectares, the total industrial area of the park is 450 hectares. The volume of investment attracted to the park is about $ 2 billion. There are 17 residents registered in the park.

Currently, there are five industrial parks in Azerbaijan - the Sumgayit Chemical Industrial Park, industrial parks in Garadagh, Balakhani, Mingachevir and Pirallahi settlements - as well as Neftchala, Sabirabad, Hajigabul and Masalli industrial zones.

Main purpose of the establishment of such parks in the country are the creation of favorable conditions in the country for further development of industrial production, provision of support to entrepreneurs, and increasing employment of population in the sphere.

Today, all residents of industrial parks, high-tech parks and agriculture parks are exempt from property tax, land tax, profit tax and VAT on imported equipment for seven years. Repatriation of profits after payment of taxes is guaranteed to all investors.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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