State Customs Committee explained conflict caused by ban on import of old cars

Baku/30.03.23/Turan: The Cabinet of Ministers of Azerbaijan adopted the 94th resolution on the restriction (prohibition) of the importation into the country of passenger vehicles whose production period exceeds 10 years. The explanation to the document says that the resolution is aimed at protecting the life and health of people, the environment, reducing emissions of harmful substances into the atmosphere by motor transport and improving the environmental situation. It is also noted that, according to statistical data, there are more than 1.4 million passenger cars in Azerbaijan today, of which more than 80% (1.3 million) are vehicles with a production period of more than 10 years.

By reducing the number of old cars in the country, the Cabinet of Ministers aims to reduce exhaust emissions, stimulate car production in Azerbaijan, and target buyers to purchase electric vehicles, the government document says.

The new import restrictions will come into force in 30 days, that is, from April 28.

This decision is  aimed at accelerating the implementation of the national priorities of socio-economic development of Azerbaijan until 2030. Among such decisions, there is the resolution of the Cabinet of Ministers on the abolition of tax payments on the import of cars with electric motors, introduced on January 1, 2019. 

Also, since January 1, 2022, along with imports, tax charges have been removed for the sale of such cars (hybrid with internal combustion engines no more than 2500 cubic centimeters and electric), as well as for the import of refueling devices for such cars. The term of the resolution is three years.

It should be added that since April 1, 2014, Azerbaijan has banned the import of European cars manufactured before 2005, American cars older than 2004, Japanese and Chinese cars older than 2011, Korean cars older than 2006, Turkish cars older than 2009. Thus, the ban on the import of cars with engines below the Euro-4 standard has been introduced. It is allowed to import Russian cars in keeping with the Euro-4 standard.

On May 1, 2012, the state standard AZS 635-2012 was introduced, following which vehicles imported to Azerbaijan and manufactured in the country must have an ABS anti-lock braking system and at least one airbag. In this regard, a ban has been imposed on the import of cars from Russia to Azerbaijan that are not equipped with such systems.

It has to be noted that the restrictions on the import of cars adopted in Azerbaijan are carried out in parallel with similar measures in Europe against environmental pollution. The EU will ban the production and import of cars with diesel engines and internal combustion engines from 2035.

The Cabinet of Ministers has published an explanation to the decree banning the import of cars older than 10 years. Two exceptions are explained. Rare cars do not fall under the new rule. However, the Cabinet of Ministers does not explain what criteria determine the rarity of the car: the year of manufacture, the number of copies remaining intact, the uniqueness of the design or other indicators?

The second exception: cars temporarily located on the territory of the Azerbaijani customs at the time of the decision are not subject to the ban.

However, the new resolution of the Cabinet of Ministers does not explain an important nuance, the unresolved nature of which may lead to the bankruptcy of car importers. The fact is that the import of cars to Azerbaijan has increased this year, the import figures in January-February 2023 were brought to 13,939 cars for various purposes in the amount of $199.3 million. 80% of this amount is 11,200 cars produced 10 or more years ago.

The time of transportation of cars from the farthest country - the USA varies from 8 to 10 weeks, or up to two and a half months. Consequently, several thousand cars purchased abroad and sent to Azerbaijan will not be cleared in Azerbaijan. And what about the citizens who bought these cars? No law or by-law regulates this circumstance. The Government of the country, specifically the State Customs Committee, will have to answer the questions of many citizens put by the Cabinet of Ministers in a difficult financial situation. A particularly heavy blow fell on citizens who took out a debt in the bank for the purchase of imported cars with a production date earlier than 10 years, with an internal combustion engine or diesel.

On March 30, the State Customs Committee clarified this conflict by informing that the latest resolution will not affect citizens who bought cars abroad on March 29. "Customs clearance is provided for vehicles that were purchased abroad before March 29, 2023 (inclusive) and will be imported with the presentation of relevant payment documents confirming this to the customs authorities," the State Customs Committee of Azerbaijan stated.—0-