New benefits for processing companies fuell production growth last year

Last year, the number of companies that used the existing customs procedure "internal processing for export" in Azerbaijan rose by 77% as compared to 2022, and the value of goods - by 85%. This is stated in today's report of the Ministry of Economy.

Note that the special customs procedure of internal processing carried out in Azerbaijan includes the import of certain goods into the territory of the country without customs duties and taxes, including VAT, for the purpose of export after processing operations. 

Add that the processing operations are understood as preparation, processing, refining and repair of goods. Domestic processing of goods in our country is mainly done on two directions - for the purpose of repairing and recycling. "The procedure is used for the development of the processing and service sectors and the stimulation of export activities," the Ministry of Economy said.

At present, a number of changes have been made to the rules for placing goods under the special customs procedure of internal processing. As a result of the changes, the owner of the procedure has the opportunity to bring raw materials or materials from any country to Azerbaijan and export them to the buyer in any country after their processing in terms stipulated by the legislation. 

Besides, the provision of compulsory security for payment of customs debt has been eliminated, and the process of drawing up documents for obtaining permission to use the procedure has been simplified.

The analysis of applications of economic entities on the procedure shows that in May 2022 the procedure was used more actively after the mandatory security was eliminated. At the same time, in April 2023, new enterprises joined the procedure after the possibility to use the procedure on the basis of a sale and purchase agreement was created.