75% of Market Products for Hair Care Not Legalized

During the first 9 months of this year to Azerbaijan were supplied products for hair care totaling $ 11 213 400. This is $ 10 million less than in neighboring Georgia, where the number of consumers is more than two times less.

Expert estimates of the amount of consumption of shampoos and other hair care products (balm / conditioners, lotions, nail polish and so on) are different and vary in the range of 2-5 liters per capita per year, depending on the standard of living and income. Azerbaijan has not defined the minimum consumption of resources for hair care. In Belarus, with which Azerbaijan is comparable in many respects (GDP, population and the welfare of the population), for example, a set of products and services for the determination of the minimum subsistence level includes 2 liters of shampoo (per year).

In Azerbaijan, there is no domestic production of shampoos and other tools for hair care. According to conservative estimates of experts, in a year Azerbaijan consumes at least 19 000 tons of these products. Officially recorded by customs is only a third of this volume. In 2013, the State Customs Committee issued 6 775.5 tons of legal imports.

Market shampoos et al. hair care products are approximately 80 million manat. Approximately 75% of this volume is hidden from tax.

In Georgia, for example, in 2013 there were imported shampoos and other hair care products, totaling $ 26.8 million (National Statistical Service of Georgia). This is 67.6% more than in Azerbaijan (over $ 16 million.). Last year, the official volume of import of hair care products to Azerbaijan increased by 4.1%.

Federal Customs Service reports that in 2012 the Russian manufacturers delivered to Azerbaijan shampoo for $ 3,239 300. Azerbaijani customs declared the goods for $ 1,183,700.

In 2013, 1 ton of shampoo was declared at the Azerbaijani customs for $ 2349, which is 2% higher than the figure for 2012. In 2011, customs officials estimated shampoo to attract to taxes (customs duty - 15%, VAT and customs clearance) at $ 2,000 per ton. For the first nine months of this year, customs officers again "let down their guard" and fixed import of shampoos at $ 1,681 / t.

For comparison, in the trade of tools for hair care between Belarus and Russia in the past year, each ton of this product delivered to Belarus (6 842 tons) was drawn on the border for $ 5 943, or $ 3 577 more than the customs value of the goods in Azerbaijan.

This year shampoos to Azerbaijan were supplied mainly from Turkey – 1 080.1 tons ($ 676,800), the Russian Federation – 1 072.2 tons ($ 635,300), Romania – 1 023.4 tons ($ 3,695,200) and Ukraine - 124 tons ($ 66 500). Importers imported goods also from Switzerland - 95.4 tons ($ 462 100), France - 47 tons ($ 97,600), Poland - 41.4 tons ($ 43 300), Germany - 48.2 tons ($ 172 800), Israel - 24 1 ton ($ 127 900), and Italy - 16.9 tons ($ 57,800).

In general, the market analysis shows that the market for hair care agents in Azerbaijan has an annual growth rate of 2-3%, and consumers increasingly attach importance not to price, but to quality of goods, which cannot be said about the fiscal authorities. --08B-