Stains on the wallpaper

According to official statistics in 2013, importers brought to Azerbaijan by 4.8% more wallpaper. However, analysis shows that in this market, demand is fully met by imports and customs officials arranged "the whole palette of corruption," leaving wallpaper "their patterns" - the official figures are only required statistics.

"Hand" of customs

Importers are already accustomed to working "with a wave of the hand" of customs authorities, realizing that "to change the rules of the game" that are embedded in the business area and for other commodities is beyond their will. For this reason they are proportionate to the circumstances. Unlike some household items, to make the market contraband wallpaper is impossible because everything is under control of the customs. Importers do not even have the right to claim the price of the goods, and they only report the amount that will be paid as a result of customs. They do not attach great significance to which part of the money will go to the state budget, as the money paid at customs will later be compensated by the importers at the expense of the consumers.

   "Supporting documents for imported goods, we present them to Baku Main Customs Office. There they fill the declaration. Prices are not officially recorded, but for us it does not matter." This was stated by the director of one of the companies importing wallpapers from Europe. The businessman refused to specify the amount of sales, trying to explain it with a trade secret. However, unofficially regulated market quite clearly shows what exactly the secret is. Companies import into the country much more commodity than is reflected in official statistics, customs, and the prices are artificially low.

   In 2013, according to official customs data registered in the country, imported wallpaper totaled $ 4 million 330.8 thousand, i.e., $ 1 per 0,733 kg. This means that a single roll of wallpaper is registered at the customs costs of 1.20 AZN. However, in the market you can find a roll of wallpaper Ukrainian production worth AZN 3. However, this segment offering does not exceed 2-3%. According to approximate estimates, annually in customs hidden from the state budget is at least 15 million manat only on imports of wallpaper.

    According to the Georgian National Customs Service, this country in 2009 imported 2,121 tons of wallpaper and it was stated that 1 kg of wallpaper on average cost 3.26 dollars. In the same year, the Customs Committee of Azerbaijan recorded wallpaper (5,024.3 tons) at five times lower (62 percent) than in Georgia.

 

Wallpaper on items

Volume in tons

Cost in USD

Volume in tons

Cost in USD

 

2012

2013

Patterned wallpaper

568.1

454.0

-

-

Patterned and colored wallpaper with plastic layer

4,507.0

2,893.0

5,122.7

3,570.2

Other wallpaper

526.5

415.2

731.0

760.6

(Customs data of Azerbaijan)

 

If in 2012 the Customs registered Azerbaijan’s import of 5,601.6 tons of wallpaper, the last in 2013, this figure reached 5,873.7 tons. Experts believe that the actual size of the market is at least twice. The stores engaged in retail trade say that this business is in the monopoly of several persons, and to enter this market "through the door" is very difficult.

Chain stores selling wallpaper

Wallpapers are sold in special stores and on retail of building materials. In retail you can find items for every taste. Importers imported goods satisfying every whim of the buyer. With the increase in quality price also increases. A roll of wallpaper with the length of 10 meters is worth three manat and above. There is wallpaper at 50 manats per roll and above.

Most on the market for sale are Ukrainian goods. Namely Ukraine is the country most officially exporting wallpaper to Azerbaijan. In 2009, Ukraine's share in the market of wallpaper in Azerbaijan was 2,165.4 tons, or 43 %, but last year the figure was 3,993 tons, i.e. 63%. Just last year, the import volume of Ukrainian wallpaper officially registered at the customs in comparison with the previous year increased by 15%. Traders say that buyers prefer Ukrainian wallpaper for its variety and reasonable prices. Currently the most popular wallpapers are 8-10 manats per roll. "Prices in the last few years remain virtually unchanged. If there was no monopoly, the prices would at least decrease 15-20 %," said one of the sellers in a Baku store.

However, there are many companies offering customers branded goods. The chain stores Wallpaper House of the company Emiliana Parati - Azerbaijan are stretched not only in Baku, but also in Ganja, Sumgait, Khirdalan, Gabala, Imishli, and Lankaran. This company is the official representative of wallpaper brands from Italy, Belgium, Germany, Holland and the United States in Azerbaijan. Firms offering fabrics and wallpapers call the price, but are silent on the volume.

The Wallpaper House D-Sign of ItalDesign Group sells wallpapers from Germany, Italy, UK, and USA. In this trading house for sale there are wallpaper brands such as KT-Exclusive - Germany, Progetto Parato, Roberto Cavalli - Italy, Holden Decor - England, and NL Fabrics - USA. This wallpaper of non-woven fabrics and vinyl is made ​​in the Art Nouveau style, classic, art deco, and avant-garde. But here, as elsewhere, they do not like to call the figures of the turnover.

Customs rates

Even if we look for that long enough, then itb will be difficult to find German wallpaper, which would cost less than 20 manats per roll. Yes, and in the local electronic trading network German wallpaper is sold at a price of 20 to 50 manats per roll. But at the customs German wallpapers are recorded at the cost of 1.07 $ / kg. In 2012, prices were even lower, at 94 cents. In the past year were imported from Germany 331.2 tons of wallpaper that was 36.7 % more than in 2012. The volume of wallpaper imported from Italy decreased. If in 2012 this country sent 641.3 tons of wallpaper to Azerbaijan, last year this figure dropped about 6 times, amounting to 105.7 tons. Instead, the announced price per 1 kg, increased from 0.78 to 1.20 dollars.

The State Customs Committee said that after Ukrainian wallpaper the second and third largest niches in the market are occupied by wallpaper from Russian and Belarusian producers - by the end of 2013 it was 874.5 tons and 374.7 tons, respectively. However, the sellers claim that the market share of these countries is low. The price of the wallpaper made ​​in China, the volume of which in the market is 24.2 tons, is equivalent to the price of the British (39.2 tons) brands - $ 1,470 per ton. -08A-

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