Azerbaijani companies increasingly apply for procedure of internal processing of goods in 2023

 Some, 85 percent growth in the value of imported goods for the customs procedure of internal processing for export purposes and 77 percent growth in the number of companies using this procedure were recorded last year compared to 2022, says Azerbaijani Ministry of Economy, reports.

"The special customs procedure for internal processing carried out in Azerbaijan consists of importation of certain goods into the territory of the country for their exportation after processing operations without levying customs duties and taxes, including VAT. Processing operations are understood as preparation, processing, re-processing, and repair of goods. The placement of goods in our country under the special customs procedure of inward processing is mainly in two ways - for repair and processing. The procedure is applied to the development of manufacturing and service industries to promote export activities. Until now, several changes have been made to the rules for placing goods under the special customs procedure of inward processing. As a result of the changes, the owner of the procedure has been given the possibility, based on an order contract as well as a sales contract, to import raw materials or materials from the desired country to Azerbaijan and export them to a buyer in the desired country by processing them within the time limits stipulated by the legislation.

In addition, the mandatory guarantee of the payment of customs debts has been canceled and the process of drawing up documents for obtaining authorization to use the procedure has been simplified. Analysis of business entities' applications for the procedure shows that after after the cancellation of the warranty requirement in May 2022, the procedure started to be used more actively. At the same time, new businesses joined the procedure after the possibility of using the procedure on the basis of a sale and purchase agreement was created in April 2023," the statement from the agency says.

You Might Also Like