Is it possible for all buyers to buy brand goods in Azerbaijan?

Entrepreneurs in the outskirts of Baku are grappling with a sudden and perplexing obstacle in their trade with China, as cargo companies refuse shipments destined for Azerbaijan. This disruption has left many business owners, who prefer to remain anonymous, baffled and frustrated, as they've relied on importing goods from China for years.

The mystery deepens as these entrepreneurs insist that their goods are neither pirated nor defective. They maintain that even if they provide detailed information about the manufacturing company in the cargo documentation, it fails to sway the cargo companies' stance. This situation has caused considerable concern among businesses, who have found themselves forced to pay additional fees to secure their shipments or, consequently, to hike prices on their products.

According to the state Customs Committee (SCC), only pirated or substandard goods are subject to rejection at the border.In an interview with Turan, the SCC cited Article 10 of the "Law on Ensuring Intellectual Property Rights and Combating Piracy," and Article 287.1 of the Customs Code as the legal basis for suspending the release of goods that exhibit signs of piracy or corruption related to intellectual property rights.

Notably, economist Zohrab Ismail aligns with the SCC's stance on this matter. In an interview with Radio Azadlig, he emphasized that a significant volume of pirated goods enters Azerbaijan from China and Turkey, underscoring the pressing issue of intellectual property rights protection in the country. Ismail contends that these counterfeit goods often make their way into Azerbaijan under the guise of well-known brands, and he urged entrepreneurs not to engage in piracy.

Ismail also attributed the widespread use of pirated goods in Azerbaijan to the country's non-membership in the World Trade Organization (WTO). He argued that if pirated goods faced restrictions, entrepreneurs would have the opportunity to collaborate with manufacturers and potentially produce these branded goods within the country. However, without such restrictions, the proliferation of cheap pirated goods undermines the feasibility of selling higher-priced legitimate products.

Economist Rashad Hasanov expressed concerns about the potential repercussions of these restrictions. He pointed out that Azerbaijan is characterized by weak purchasing power and a high demand for affordable products. Consequently, this disruption in the flow of goods could lead to substantial price increases, exacerbating the economic challenges faced by many.

Moreover, Hasanov voiced apprehensions about corruption risks associated with such restrictions. When high market demand intersects with regulatory limitations, he warned that opportunistic actors might exploit the situation for personal gain, fostering conditions conducive to corruption and bribery.

The unresolved issue surrounding the importation of goods from China has created a ripple effect in the Azerbaijani business landscape, prompting a complex debate that encompasses intellectual property rights, economic dynamics, and concerns about corruption.