RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/AZE/5
4 December 2001
(01-6154)
Working Party on the
Accession of AzerbaijanOriginal:  English
ACCESSION OF AZERBAIJAN
Additional Questions and Replies
The Permanent Mission of the Republic of Azerbaijan has provided the replies reproduced
hereunder to additional questions submitted by Members on the Memorandum on the Foreign Trade
Regime.
_______________
CONTENTS
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................1
2. Economic Policies............................................................................................................ ..........1
(a) Main directions ............................................................................................................. ............1
(c) Foreign exchange and payments system, relations with International Monetary
Fund, application of foreign exchange controls if any...........................................................3
(e) Competiti on Policy.......................................................................................................... ..........5
(f) Privatizati on polic ies...................................................................................................... ...........5
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................9
1. Powers of executive, legislative and judicial branches of government.................................9
2. Government entities responsible for making and implementing policies affecting
foreign trade .................................................................................................................. ..........12
3. Division of authority between cen tral and sub-central governments.................................14
4. Any legislative programmes or plans to change the regulatory regime.............................15
6. Description of judicial, arbitral or administrative tribunals or procedures, if any..........16
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................18
1. Import Regulation............................................................................................................ .......18
(a) Registration requirements fo r engaging in importing.........................................................18
(b) Characteristics of national tariff, customs tariff nomenclature (HS), types of
duties, general description of the customs tariff structure, weighted average level
of duties on main customs tariff groupings; application of m.f.n. tariff rates,
tariff pref erences............................................................................................................. ........19WT/ACC/AZE/5
Page ii
(d) Other duties and charges, specifying any charges for services rendered ..........................21
(e) Quantitative import restrictions, including prohibitions, quotas and licensing
systems ........................................................................................................................ .............24
(h) Customs valuation........................................................................................................... ........31
(i) Other custom s formal ities ................................................................................................... ...34
(j) Pre-shipment  inspection ..................................................................................................... ....34
(k) Application of internal taxes on imports ..............................................................................34
(l) Rules of  origin ............................................................................................................. ............37
(m,n,o) Anti-dumping, countervaili ng and safeguard regimes ........................................................38
3. Internal policies affectin g foreign trade in goods.................................................................39
(b) Technical regulations and standards, including measures taken at the border
with respect to imports; and ..................................................................................................3 9
(c) Sanitary and phytosanitary measures, including measures taken with respect to
imports ........................................................................................................................ .............39
(e) State-tradi ng practices ..................................................................................................... ......48
(l) Government procurement practices, including general legal regime and
procedures for tendering, dealing with tenders and award of contracts...........................49
4. Policies affecting foreign tr ade in agricultu ral products.....................................................49
(d) Export credits, export credit guar antees or insurance programmes .................................49
(e) Internal policies........................................................................................................... ............50
V. TRADE-RELATED INTELLECT UAL PROPERTY  REGIME.......................................50
1. General...................................................................................................................... ...............50
2. Substantive standards of protection, in cluding procedures for the acquisition
and maintenance of intelle ctual property rights ..................................................................61
(a) Copyright and related rights, including rights of performers, producers of
phonograms and broadcasting organizations ......................................................................61
(b) Trademarks, includi ng service marks...................................................................................63
(c) Geographical indications, incl uding appellations of origin.................................................65
(d) Industrial designs.......................................................................................................... ..........66
(e) Patents..................................................................................................................... .................67
(f) Plant variety protection.................................................................................................... ......70
(g) Layout-designs of in tegrated circuits....................................................................................71
(h) Requirements on undisclosed information, including trade secrets and test data............724. Enforcement .................................................................................................................. ..........73
VI. TRADE-RELATED SE RVICES RE GIME .........................................................................82
2. Policies Affecting Trade in Services ......................................................................................82
3. Market Access and National Treatment ...............................................................................85WT/ACC/AZE/5
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VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................86
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade
in services.................................................................................................................... .............86
2. Economic Integration:  Customs Union and Free Trade Area Agreements .....................86WT/ACC/AZE/5
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions
Question 1
Pricing Policies.  WT/ACC/AZE/2 states that “In 1999, the Government will control prices of
services and goods supplied by natural monopolies in the following industries: electrical power;heating energy; gas; oil and gas transportation; railway transport; telephone and mail
communication services; public utilities; and housing rent.”
Are there currently any additional price controls, profit controls, or price guidance from any
State agency on goods or services?  If so, please list them, supplying the HS tariff code for any
goods under price control?
 Answer:
 The base of state price and pricing policy consists of the state regulation of prices and tariffs
appointed by natural monopolies for services rendered.  The Law of the Republic of Azerbaijan "On
natural monopoly" by 5 December 1998 identifies following spheres of natural monopolies' activity:
1. oil and oil products transfer by rout pipeline;
2. services on transferring of natural gas by pipelines, its storage and dissemination;
3. services on transferring and dissemination of electricity and heating energy;
4. services on main and local railroads, use of road constructions, traffic regulation and
traffic security, on railroad and passenger stations;
5. airport services, airstrips and use of installations equipment, aviation and air-
navigation service rendered to aircraft;
6. metro railways, tunnels and stations use, regulation of traffic and traffic security
services;
7. maritime port services, exploitation of port installations, security services while stuff
carrying and movements;
8. electricity for general use and post communication, receivers - broadcasting radio and
television stations, exploitation of high-voltage installations and control services;
9. main sewage purification installations, main pipelines, water lines network and
exploitation of its high pressure and regulation installation;
10. aeration in sewage, mechanical regulation stations, pumping stations, main and rain
collectors and sewage lines exploitation;
11. exploitation of water reservoirs, channels, collectors, pipelines and links related with
melioration and irrigation;
12. provision of heating services.
In cases of establishment of new acting objects in spheres listed above and enterprises acting
in competitive conditions are not considered to be natural monopolies and this law has no concern to
them.
Moreover, in accordance with the legislation of the Republic of Azerbaijan, prices and tariffs
for goods (services) listed below are subject to state regulation:
- Goods and passenger's transportation by railroad and passenger's transportation by air
and land transport mean, sport services and public transportation of passengers;WT/ACC/AZE/5
Page 2
- Drinkable water and irrigation water in agriculture for watering;
- Budgetary financed services rendered by the central executive power authority;
- Rent payment of non-residential areas.
Besides spheres listed above, state regulation also covers prices in the retail sale of oil
products.
Question 2
Please cite and describe the legal authority Azerbaijan retains to control prices or profits and
indicate under what circumstances Azerbaijan would impose such restrictions.
 Answer:
 State regulation of prices (tariffs) is being carried out by Cabinet of Ministers, Ministry of
Economy, Ministry of Finance, State Committee on Anti-Monopoly, city (district) Executive Power.
 Government does not foresee any normative limits to incomes in spheres of production of
financial goods in the country. Amounts of incomes made on prices (tariffs) that are under statecontrol are accounted while regulation of those prices (tariffs).  In another words, state carries out
indirect control over incomes.  Thus, Ministry of Taxes of the Republic of Azerbaijan controls
incomes of enterprises while regulating control over in time payments of taxes and other charges due
to the government.
 Retail and whole sale prices for oil products are proved after consultations with Ministry of
Economy, Finance and State Committee on Antimonopoly and Entrepreneurship Support.  Price
control policy of this kind is permanently applied to spheres important for all agricultural sector.
 Control over correct formation and application of prices (tariffs) in places is entrusted to the
Ministry of Taxes of the Republic of Azerbaijan by the legislation.  State control over prices (tariffs)
of goods (services) of monopolies is also entrusted to the State Antimonopoly Policy andEntrepreneurship Support Committee by the legislation.  Monitoring of consumer prices in domestic
market and publication of results in statistical information is entrusted to State Statistics Committee.
 Tariff and price regulation in Azerbaijan for above-mentioned services is being carried out
upon Decisions of the Cabinet of Ministers "On Regulation of sale prices for energy carriers in
domestic market" under #367 by 24 October 1994, "On Regulation of tariffs for transportation ofpassengers, luggage, mail and cargo by the Azerbaijan State Airways Concern" under #374 by
2 November 1999, "On regulation of tariffs for inter-city transportation of passengers by the
Azerbaijan State Azerautonegliyyat Concern" under #380 by 7 November 1994, "On regulation of
tariffs for telephone communication services" under #386 by 14 November 1994, "On regulation of
tariffs for maritime transportation of passengers" under #411 by 2 December 1994 and "Onamendments to some decisions of the Cabinet of Ministers" under #82 by 22 July 1997 upon
consultations with the Ministry of Economy, Finance and State Antimonopoly and Entrepreneurship
Support Committee
 Besides this, commission "On control over wholesale prices for food products sold to the state
financed enterprises in the Republic of Azerbaijan" established upon the Decree of the Cabinet of
Ministers of the Republic of Azerbaijan under #74s by 5 July 1996 is carrying the responsibility for
controlling the wholesale prices for main food products procured by the state financed enterprises.WT/ACC/AZE/5
Page 3
 At the same time, tariffs for public utilities are determined by the Decision of the Cabinet of
Ministers "On approval of tariffs for use of dwellin g spaces (rental payment) ones in balance of state
and public apartment funds and utilities" under #40 by 10 March 2000.
 Along with this, draft project of the Decision of the Cabinet of Ministers "On regulation of
prices and tariffs for goods supplied by the natural monopolies and rules of their formation" is under
Government consideration.
 Sectors identified as shperes of natural monopoly activity are determined by the Law of the
Republic of Azerbaijan "On Natural Monopoly".  The state regulation of natural monopoly activity in
order to provide connection between consumers and monopolists interests is being carried out by: 1)
regulation of prices (tariffs) for goods of natural monopolies 2) indentification of consumers to be
compulsory served and identification of minimum needs of consumers in cases when natural
monopolies not able to fully meet needs of consumers.
 Regulation policy of the prices (tariffs) for goods of the natural monopoly is formed
accordingly to the same Law and state regulation body for determination of economically grounded
prices for goods carries out control policy of the level of ground of volume of income, expenditure
and elements forming the price.
 Government bears state control over natural monopolies' activities regulated by the same Law
in order to eliminate limits for and improve competition.
 There are no other mechanisms for limitation of state controlled prices (tariffs), also free
prices (tariffs) and incomes.
 (c) Foreign exchange and payments system, relations with International Monetary Fund,
application of foreign exchange controls if any
 Question 3
WT/ACC/AZE/2 states that Azerbaijan’s “national currency is fully convertible, with some
restrictions for capital account transactions.”  Pl ease describe the restrictions on the capital
account.
 Answer:
 Question 4
 Since the regulation of the capital flows is not provided in the normative acts of the Republic of
Azerbaijan, these operations are carried out through the personal permission in accordance with the
normative acts of the National Bank.
 Question 5
Please describe how foreign exchange is acquired or sold in Azerbaijan.Does Azerbaijan impose any controls or requi rements on the acquisition or disposition of
foreign exchange by private individuals or firms?WT/ACC/AZE/5
Page 4
 Answer:
In accordance with the current legislation, National currency can be freely converted to any
foreign currency.  These operations are carried out through the internal conversion of the Baku
Interbanks Currency Exchange Markets, Organized Interbanks Currency Markets, Open Interbanks
Currency Markets and Banks.  Cash exchange is carried out by the Currency Exchange Points.
Natural persons buying more than US$1,000 are acquired to have passport in order to be registered.Moreover, during advance payment, residents can with no restriction pay up to US$10,000 or
equivalent amount in another currency for any cont racts on import of goods or services.  At the same
time this restriction bears an indicative character and can be individually increased upon the
permission of the National Bank.
Question 6
Is it required that proceeds from export of goods or services be converted into national
currency?  If so, under what circumstances?  Please describe any other conversionrequirements placed on earnings or remittances in  currencies other than the national currency.
 Answer:
 There is no requirement for proceeds from export of goods or service be converted into
national currency.  But these kinds of proceeds are required to be deposited into the correspondent
accounts in banks of the Republic of Azerbaijan.
Question 7
Does the government provide foreign exchange fo r any designated purpose?  If so, does the
price differ from that available on the market?
 Answer:
 Since the currency market of the Republic of Azerbaijan is liberal enough, there is no need for
the government to provide foreign exchange for any designated purpose.
Question 8
Does Azerbaijan permit bank accounts of any kind in currencies other than the national
currency?
 Answer:
 In accordance with the legislation of the Republic of Azerbaijan bank accounts of any kind in
currencies other than national are permitted.
Question 9
Please update the information on Azerbaijan’s relations with the IMF and its status under the
Articles of the Fund.
 Answer:
 The Republic of Azerbaijan became a member of International Monetary Fund upon the
Decree of the President of Azerbaijan by 18 August 1992 and Decision of the Milli Mejlis byWT/ACC/AZE/5
Page 5
19 August 1992.  Since then, relationships between Azerbaijan and International Monetary Fund had
dynamically developed.  Till now Azerbaijan and IMF have implemented several joint
macroeconomic projects and IMF gave credits supporting these projects such as Structural
Transformation Facility (STF), Stand-by, Extended Structural Adjustment Facility (ESAF), Extended
Financing Facility (EFF), Compensatory and Contingency Financing Facility (CCFF).  The total
amount of these credits constituted more than US$600 million.  At present, consultations betweenAzerbaijan and IMF are carried out in accordance with Article IV of the Fund Agreement.  At the
same time consultations concerning next stage for 3 years are also carried out.
(e) Competition Policy
Question 10
Please review GATS Article VIII (Monopolies and Exclusive Service Suppliers) and provide
information on how Azerbaijan is complying, or is taking steps to comply, with the
requirements of that Article.
 Answer:
 Government of Azerbaijan ensures provision of equivalent condition for local as well as
foreign services supplier in the provision of goods and services to the market through the legislation
acts of Azerbaijan in the entrepreneurship activity and competition protection spheres.  Government
also prohibits abuse of monopoly rights, unreasonable price control over produced and sold goods,discrimination, provision of exclusive exceptions an d unfair competition cases by Laws of Azerbaijan
"On entrepreneurship activity", "On Enterp rises", "On antimonopoly activity", "On unfair
competition".  Government established a legal-normative base for relative measures for elimination of
law violations.
(f) Privatization policies
Question 11
Please describe Azerbaijan’s privatization program in a chart that indicates how many firms or
enterprises, by type, were privatized in the period 1991-1995 and in the period 1995 to present,
noting as a starting point the total number of firm s or enterprises identifi ed initially as eligible
for privatization, and giving information by sector.  Please classify these firms as small,medium, or large enterprises, and indicate how many in each category have been reserved from
privatization, and how many remain to be privatized.WT/ACC/AZE/5
Page 6
 Answer:
 Small scale privatization by years and sectors
 #  Sector  1996  1997  1998  1999  Total
 1.  Utility Services  5,103  3,813  412  80  9,408
 2.  Trade and Nourishment  387  834  814  170  2,205
 3.  Patrol Stations  186  172  57  24  439
 4.  Bread shops  302  63  7  1  373
 5.  Bread producing stations (equipment)  6  170  25  6  207
 6.  Industrial enterprises and equipment  14  308  286  40  648
 7.  Construction enterprises  2  53  242  32  329
 8.  Frozen constructions, incomplete constructions  5  30  52  15  102
 9.  Leased objects  0  87  168  41  296
 10.  Leased un-inhabited object  0  221  884  235  1,340
 11.  Other spheres  8  1  45  6  60
 12.  Drug store  0  4  107  43  154
 13.  Transportation means  384  1,360  3,629  548  5,921
  TOTAL  6,397  7,116  6,728  1,241  21,482
 
 Privatized joint-stock enterprises (by years)
 Sector  1997  1998  1999  Total
 Agriculture  187  119  0  306
 Industry  69  42  1  112
 Transportation  20  120  0  140
 Construction  20  122  0  142
 Trade  22  73  0  95
 Service  89  71  0  160
 TOTAL  407  547  1  955
Diagram on privatized small enterprises by years
6,3977,116
6,728
1,241
01,0002,0003,0004,0005,0006,0007,0008,000
1996 1997 1998 1999
yearsnumbers of objectsWT/ACC/AZE/5
Page 7
 Diagram on numbers of privatize d joint-stock enter prise s  b y 
ye ars
020406080100120140160180200
Agriculture
Industry
Transportation
Construction
Trade
Services
Names of sectorsNumbers1997
1998
Diagram on privatized joint-stock enterprises
407507
1
0100200300400500600
1997 1998 1999
yearsnumber of objectsWT/ACC/AZE/5
Page 8
Diagram on number of small privatize d e nte r prise s 
(by years and sectors)
9408
2205
439 580 648 43116365921
154 60
010002000300040005000600070008000900010000
Utility Services
Trade and nourishment
Petrol Station
Bread trade and bread producing
objects
Enterprises and equipment
Construction companies (frosen
constructions, incomplete
enterprises)
Leased property
Transportation means
Drug stores
Other objectsSmall scale privatization by years 
(including equipment)
1996
30%
1997
33%1998
31%1999
6%WT/ACC/AZE/5
Page 9
Question 12
Approximately what portion of Azerbaijan’s imports and exports are currently accounted for
by state-owned enterprises?
 Answer:
Upon the information provided by the Azerbaijan State Statistics Committee proportion of
state-owned enterprises in export and import transactions in 1994 constituted US$4,423,466 thousand
and US$3,921,361 thousand in 1995.  The proportion of state-owned enterprises in import-export
transactions since 1995 has not been followed.
Question 13
Please update the information provided in WT/ACC/AZE/2 on the status of Azerbaijan’s
privatization program and its prospects in the next 1-2 years.  What firms have been reserved
from privatization, and is this status permanent?
 Answer:
See answer to Question 11.
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
1. Powers of executive, legislative and judicial branches of governmentQuestion 14
Please outline the hierarchy of laws, i.e., which types of legislative instruments supersede others
where there are inconsistencies in two or more laws.
 Answer:
 According to the Constitution of Azerbaijan, the legislation system of the country consists of
following normative legal acts:
- Constitution;
- Acts adopted by the referendum;
- Laws;
- Decrees;
- Decisions of the Cabinet of Ministers;
- Normative acts of the central executive body.
Application and execution of acts adopted by the referendum, after their publication, are
obligatory for by citizens, legislative, executive and court authorities, legal persons and municipals.
Laws cannot contradict the Constitution.  Decrees of the President of Azerbaijan should
contradict neither Constitution nor laws of Azerbaijan.WT/ACC/AZE/5
Page 10
Decisions of the Cabinet of Ministers of Azerbaijan should contradict neither Constitution,
laws nor presidential decrees.  Acts of the central executive body should not contradict neither
Constitution, laws, decrees of the president nor decisions of the Cabinet of Ministers.
As it provides Article 7 of the Law of the Republic of Azerbaijan "On normative-legal acts",
“If there are inconsistencies between two different legally valid normative acts, one with more legal
validity supersedes the other.  If there are inconsistencies between two legally equal normative acts,one approved latter supersedes the other.”
Question 15
How are relative authorities assessed if laws are passed whose provisions appear to conflict with
one other.
 Answer:
See previous question.
Question 16
Where does Azerbaijan publish second tier legislation (i.e., Acts of the President’s Office, the
Cabinet of Ministers and the various Ministries)?  Is it required that they be published to come
into force?  If so, please cite the law that provides for this.
 Answer:
In accordance with the active legislation of the Republic of Azerbaijan, Laws of Azerbaijan,
Decrees and Resolutions of the President of Azerbaijan are published in the official mass media like
“Azerbaijan” newspaper and “Collection of the legislation of the Republic of Azerbaijan”.
Decision of Milli Mejlis of Azerbaijan are published in "Azerbaijan" newspaper and
"Information of the Milli Mejlis" Collection.
Resolutions of the Cabinet of Ministers are published in the official publishing houses like
“Collection of the legislation of the Republic of Azerbaijan” and “Republic” newspaper also by other
publishing houses when immediate and wide broadcast of the information is necessary.
Normative-legal acts of the central executive authorities are being published in the “Bulletin
of normative-legal acts of the executive authorities of the Republic of Azerbaijan”, which is the
official publishing house of the Ministry of Justice.
Relative executive authorities and Milli Mejlis of Azerbaijan can officially publish their
adopted normative-legal acts in the way provided by the legislation of Azerbaijan.
 Normative legal acts of relative executive authorities or other bodies are published by them in
a volume necessary for wide acquaintance of by citizens.
 Normative legal acts can also be published by any publishing houses or broadcasted by mass
media.
 Laws of Azerbaijan, Decrees of the President and Cabinet of Ministers of Azerbaijan are
effective since their publishment if not otherwise foreseen thereby.  Normative legal acts of relative
central executive bodies, normative acts of regional executive bodies, local municipal bodies andWT/ACC/AZE/5
Page 11
National Bank of Azerbaijan are effective after the publishment following the registration if not
foreseen otherwise thereby.  In order to make any part (provision, article, subsection) of the normative
legal act effective, different date other than the one fixed for the effectiveness of the whole document
can be fixed.
Question 17
Please describe the process that Azerbaijan will use to ratify the accession package approved by
WTO members, and indicate abou t how long it should take.
 Answer:
 All proposals concerning joining to internatio nal agreements are being submitted to the
President of the country by the Cabinet of Ministers and the Ministry of Foreign Affairs.  Proposals
on joining the international agreements including rules different from those provided in national
legislation are being submitted to the President of Azerbaijan in coordination with the Ministry of
Justice and approval of special experts.
 The President of Azerbaijan is the one making decision on bearing the negotiations or actual
conclusion of international agreements.
 Agreements on joining of Azerbaijan to the universal or regional international organizations
should be ratified by the Milli Mejlis.  International agreements should be submitted to the Milli
Mejlis within one month for ratification.
 International agreements of Azerbaijan are being independently submitted by the Ministry of
Foreign Affairs, other ministries, with the committees  and departments, or in co-ordination with them
to the President of Azerbaijan.
 International agreements of Azerbaijan submitted by the President of Azerbaijan to the Milli
Mejlis for ratification are reviewed by the expe rts of the Supreme Council for their comments.
 International agreements submitted for ratification should be in national language.  In cases if
contexts of agreements are not in national language, they should be translated and relative documents
proving the official translation should be attached.
Question 18
How will WTO provisions be implemented in Azerbaijan?  Will the WTO automatically
supersede domestic law after its is ratified?  Will conflicting domestic laws still be enforced
unless repealed or replaced by specific legislation?
 Answer:
 In accordance with provisions of the effective legislation, whenever Azerbaijan becomes a
part of international organization or agreement, government makes relative corrections and additionsto its legislation.  According to Article 148.2 and Article 151 of the Constitution of Azerbaijan,
international agreements that Azerbaijan is a part to are integral part of its legislation.  If there are
inconsistencies between normative legal acts of the legislative system of Azerbaijan (except the
Constitution of the Republic of Azerbaijan and acts adopted by the referendum) and interstates
agreements that Azerbaijan is participating, mentioned agreements supersedes domestic normative
legal acts.WT/ACC/AZE/5
Page 12
 Along with this, amendments and additions to the legislation of Azerbaijan related to the
WTO Agreements will be made upon the membership.
2. Government entities responsible for making and implementing policies affecting foreign
trade
 Question 19
WT/AZE/2 states that the Ministry of Commerce coordinates the activity of other central
executive bodies in the field of internal and foreign trades in comp liance with the existing
legislation.
Please describe the structure of the coordinati on mechanism for trade policymaking, citing the
relevant legislation, and outline its roll in this negotiation.
 Answer:
 According to Decree of the President of Azerbaijan under #626 "On Provision on the Ministry
of Commerce of Azerbaijan" by 26 July 1997, responsibilities and authorities of the Ministry ofCommerce are as follows:
- within its authority and in a way described by the law, demand of relative documents
and information of government and non-government bodies, natural persons and legal
entities;
- application to foreign government and non-government agencies, enterprises and
banks and establishment of cooperation with them;
- taking part in events or meeting carried by international trade organizations;
- submission of claims to prohibit activity, abort licence and other measures against
enterprises violating trade rules;
- submission of relative proposals on abortion of decisions made regarding trading by
the central executive authorities contradicting effective legislation.
Responsibilities of the Ministry of Commer ce within its authorities are as follows:
- participating in elaboration of state concept on main principles of trade its
implementation by attracting other central executive authorities;
- participating in elaboration of measures on implementation of state policy in trade
and keeping control over compliance with e ffective legislation, international legal
norms and within its authorities control over application of relative commitments
coming from international agreements;
- participating in elaboration of international agreements and carrying out of talks with
other countries on trade-economic cooperation in the identified manner;
- in foreign economic cooperation sphere, elaboration of proposals on measures
ensuring implementation of international agreements together with or in coordination
with the Ministry of Foreign Affairs;
- together with the Ministry of Foreign Affairs carries out coordination of foreign trade
relations with CIS countries and submits relative proposals to the Cabinet of
Ministers in coordination with central executive authorities;
- participating in elaboration of coordination and implementation of international
agreements of Azerbaijan on transportation, transit of goods, also legal, tariffs and
other measures in foreign trade logistics;WT/ACC/AZE/5
Page 13
- participating in establishment of equal conditions in domestic market for residents as
well as for foreign investors to trade, submission of relative proposals in this concern
to the Cabinet of Ministers;
- participating in elaboration of forecasts regarding foreign trade balance of the
country;
- carrying out of researches regarding domestic trade, social nourishment and
elaboration of forecasts on their development in current and further periods and
submission of proposals to the Cabinet of Ministers;
- preparation and submission of proposals to central executive authorities on increasing
of quantities of domestically produced goods, their competitiveness, importation of
produced consumer goods;
- together with central executive authorities applies measures on increasing quantities
of socially used products, participates in elaboration of programs aimed to eliminatespecial situations arising in goods provision sphere;
- participates in development programs of economic reforms in domestic trade and
social nourishment, anti-monopolizing activity and establishment of conditions for
competition, in privatization of enterprises, preparation of proposals on description of
formation of trade relations, development of pricing, taxes and account systems;
- Organization of scientific researches for foreign and domestic trade, provision of
foreign economic entities with necessary scientific-technical, economic, legal
information, carrying out of works on establishment of database and information
systems on foreign economic activity and trade;
- Establishment of information system for trade and provision of advises;
- Application of measures on non-tariff regulation of foreign trade, and in cases
provided in the legislation and in the prescribed order issues licenses for import and
export activities, also issuance of certificates of origin for goods to be exported out of
the customs territory of Azerbaijan if it is necessary and if it is foreseen by the
agreements (contracts) normative acts and in international agreements of Azerbaijan;
- In the identified way, submits proposals on rates levies and taxes in trade;
- Within its authorities, participates in elaboration of drafts normative acts regulating
trade activity;
- Participates in elaboration of proposals on development of customs legislation of
Azerbaijan;
- Organizes and coordinates cooperation of central executive authorities with World
trade Organization and other international economic organizations and participates in
meetings organized by these organizations;
- In the prescribed way, participates in establishment of representations of Azerbaijan
in other countries and international trade organizations and keeps control over their
activity;
- Participates in organization of exhibitions and fares of foreign companies in
Azerbaijan and in organization of exhibitions in other countries held with
participation of Azerbaijan companies;
- Carries out researches in order to prepare proposals on protection measures of
importing goods, also carries out consultations with relative authorities of other
countries and in the conclusion applies relative measures;
- Carries coordination activity with other central executive authorities on application of
temporary technical measures (like; standards, safety norms, systems of compliance
with qualitative requirements, packaging rules, forms of documents attached to
goods, requirements of pre-shipment inspection, ecology, veterinary, sanitary and
phytosanitary norms, measures for provision of national safety, methods of provisionof compliance of works and services to identified norms) regarding import-export of
goods, works and services;
- Provides protection against importation of unqualified to the market;WT/ACC/AZE/5
Page 14
- Participates in elaboration of instructions and other normative acts concerning
provision of population of the country with necessary products and goods of a first
need in special situations, carries activity for ensuring state security of the country
and provision of normal working conditions for trading enterprises;
- Submits proposals on border territories and rules for border trade to the Cabinet of
Ministers;
- Within its authorities, participates in establishment and regulation of free economic
zones, together with central executive authorities and international organizations
assists in attraction of and supports to foreign investments to free economic zones;
- Prepares proposals concerning implementation of state encouragement mechanisms
for industrial exports and main directions of trade policy;
- Participates in implementation of investments projects and attraction of investments
to Azerbaijan, submits proposals regarding establishment of beneficial conditions forforeign investors;
- Implements necessary measure for provision of social protection of ministry staff,
improvement of working conditions of employees;
- Carries out other responsibilities foreseen in by the legislation of Azerbaijan.
In addition to this, it is necessary to note that the Ministry of Commerce is the main executive
of the Program "State Program for trade development in the Republic of Azerbaijan for years 1999-
2002" approved by the Decree 160 by 23 July 1999 of the President of Azerbaijan.
Main directions of this Program are as follows:
- ensuring improvement of export potentials and development of export structure;
- improvement of competition potentials of produced goods;
- increasing benefits from import;
- attraction of investments and credits to prior spheres in order to create strong
economic potentials of the country and implementation of technology developments;
- improvement of free competition conditions in domestic market, provision of
consumer's rights;
- creation of unique information-register system for trade, nourishment and other kinds
of services.
3. Division of authority between central and sub-central governments
 Question 20
WT/ACC/AZE/2 states that the heads of local executive authorities carry out the executive
power in the regions (districts, cities).
Do sub-central authorities in Azerbaijan have any authority to apply subsidies or rules for
investment, or take other measures covered by  WTO provisions independent of the authority
and control of the central government?
 Answer:
 Authorities of sub-central or municipal aut horities to apply subsidies or investments
independently of the authority of the central govern ment is regulated by the Law of Azerbaijan "On
Financing the municipal authorities" under #722-Q by 7 December 1999 and "Provision on sub-
central authorities" approved by the Decree of the President of Azerbaijan under #138 by
16 June 1999.WT/ACC/AZE/5
Page 15
Question 21
Do Azerbaijan’s sub-central authorities have the power to apply taxes independently of central
authorities?  If so, what sorts of taxes are appl ied and what is the relative size of their total
compared with total central government revenues?
 Answer:
In accordance with Tax Code of Azerbaijan effective since 1 January 2001, taxes are
determined only by this Code and any changes to these taxes are applied only by making changes to
this Code.
Coming to local taxes (municipal taxes), these taxes are ones determined by the Tax Code and
relative law and applied in accordance with decision of local municipal authorities and applied in
districts covered by these municipals.  Other mandatory payments applied by the municipal
authorities are determined by the relative law.
Local municipals are determining following elements of tax application accordingly to the
Tax Code: tax concessions and tax rates in cases foreseen by the Code.
Question 22
How would the central authorities act to overrid e any action by sub-central authorities that,
after Azerbaijan’s accession, violated WTO provisions?
 Answer:
 Acts adopted by local municipals should be based on legality and fairness (equal interests and
attitudes), should not contradict Constitution, Decrees of the President, decisions of the Cabinet of
Ministers (in Nakchivan Autonomic Republic; Cons titution of Nakchivan, laws, decisions of the
Cabinet of Ministers of Nakchivan).
 In cases of inconsistencies between effective normative legal acts of the national legislation
(except Constitution of Azerbaijan and acts adopted by the referendum) and inter-governmental
agreements that Azerbaijan is a part to, international agreements supersede normative legal acts.
 4. Any legislative programmes or plans to change the regulatory regime
Question 23
Please report on efforts made since Azerbaijan applied for WTO accession in 1998 to bring its
trade regime into line with WTO provisions.
 Answer:
 The New Tax Code adopted in Azerbaijan is fo r the first time combines all taxes in it.
Moreover, government adopted several laws like "On protection of Investors rights in stock market",
"Labor migration", "On technical security", "On investments funds" etc. aimed to provide legalprotection for economic reforms.
 List of VAT exempt imports determined upon th e decision of the government of Azerbaijan is
also elaborated.WT/ACC/AZE/5
Page 16
 The Decision of the Cabinet of Ministers "On rates of customs charges for import-export
transactions in the Republic of Azerbaijan" approved under #91 by 22 April 1998 foresees the volume
of simplified customs charges applied for customs registration.
 Normative legal acts like Laws "On Copyrights and cooperate rights", "On Patent", "On
Antimonopoly activity", "On Unfair Competition", "O n trademarks and geographical signs", Civil
Code, Civil-Procedural Code, Criminal Code, Crim inal-Procedural Code and other legal acts have
been adopted and amended.  Along with this, Azerbaijan is continuing its membership to the World
Geneva Convention "On Copyrights" since 1997 (from the date of former USSR membership to this
Convention by 27 May 1973) and declared its membership to the Bern Convention "On protection of
cultural and art works" since 27 November 1998 and since 1999 is a participant to this Convention.
Besides this, Azerbaijan adopted several relative laws declaring the participation of Azerbaijan in
"Convention on united law on Bills and Note of Hands" and "Convention on united law on vouchers".
 Also since 1999 Azerbaijan is a member to the "Agreement on Prevention of infringements of
intellectual property rights" that CIS countries are participating in.
 At the present, issues concerning membership of Azerbaijan to the Agreements "On
Copyrights" "On Works and phonograms" (Internet ag reements) of the World Intellectual Property
Organization, also Geneva Convention "On Protection of rights of phonogram makers from illegal
copying", Rome Convention are under consideration.
 In order to improve the national legislation and bring it into line with international standards,
new Criminal Code, Criminal-Civil Code, Civi l Code, Civil-Procedural Code and Code On
Administrative Infringements of Azerbaijan are brought into effect since 1 September 2000.
Question 24
Please review the list of laws provided in Annex II of WT/ACC/AZE/2 and listed in
WT/ACC/AZE/2/Add.1 and ensure that copies of relevant trade legislation has been provided to
the WTO Secretariat for review by WP members.  In particular, we would want to have copies
of laws related to customs measures, quotas or bans on imports or exports, tariffs, import and
export licensing, intellectual property protec tion, certification of standards or sanitary
requirements for imports, and fees, charges and taxes applied to imports.
 Answer:
 Copies  of laws related to trade are submitted to the Secretariat of the WTO.
 6. Description of judicial, arbitral or administrative tribunals or procedures, if any
Question 25
Please describe the right of appeal within Ministries of importers and exporters of
administrative decisions taken by the authorities on issues covered by WTO provisions, e.g.,
customs valuation; classification; application of tariffs, taxes and customs charges; licensing or
other non-tariff measures, intellectual property rights, etc.
 Answer:
 With claims of administrative decisions made by the authorities on issues covered by WTO
provisions, importers or exporters have the right firsts to appeal to the relative Ministry as the first
instance, then to general courts or to economic court.WT/ACC/AZE/5
Page 17
 The new Civil-Procedural Code of Azerbaijan is effective since 1 September 2000.  This
Code provides protection for infringed rights while dispute settlements and rights for freedom.  The
relativity of disputes to Economic Court or General Court is decided upon subjective reasons of the
involved parties or subject of the dispute or by this Code upon characteristics of legal relations.
 In cases related to disputes on civil, family, labour, apartment, land issues, usage of natural
resources, environment protection, tax, and administrative matters in other spheres, if any of involvedparties is a natural person and is not an entrepreneur or even if the party is the one, but the case
doesn't concern his business, these disputes are treated by general court in a civic way.
 In cases of disputes razing from commercial relations between natural persons with no
juridical status engaged in entrepreneurship with no concern to their subordination to any enterprise
and juridical persons, these cases are treated by economic court in a civil way.
 Decree of the President of Azerbaijan by 8 October 1996 on implementation of the Law "On
copyrights and cooperate rights".
 Decision of the Cabinet of Ministers by 2 May 1997 on implementation of the Law "On
copyrights and cooperate rights".
 In year 2000 the Ministry of Justice adopted "Rules on registration of copyrights subjects".
 The Law of Azerbaijan "On Patent" under #312-1 Q is effective since 2 August 1997 (since
its publication date).
 The law of Azerbaijan "On trademarks and geographical signs" under # 504-1 Q is effective
since 27 August 1998 (since its publication date).
 The Provision of Azerbaijan State Committee on Science and Technology "On the
Appellation Commission" is brought into effect by  the Decision of the Cabinet of Ministers under
#155 by 2 September 2000.
 Rules on State register of trademarks are brought into effect by the Decision of the Cabinet of
Ministers under #143 by 30 August 1999.
 Rules on State register of geographical signs are brought into effect by the Decision of the
Cabinet of Ministers under #143 by 30 August 1999.
 Provision on Patent ownership is brought into effect by the Decision of the Cabinet of
Ministers under #21 by 15 February 2000.
 Rules on application for registration of trademarks and their expertise are brought into effect
by the Decision of the Cabinet of Mi nisters under #166 by 15 September 2000.
 Rules on application for registration of geographical signs and their expertise are brought into
effect by the Decision of the Cabinet of Ministers under #166 by 15 September 2000.
 Amount of levies and charges related to protection of industrial property and rules of payment
were approved by the Decision of the Cabi net of Ministers under #37 by 6 March 2000.
 Rules of preparation of application form for patent obtainment for innovation, rules of
submission and consideration were approved by  the Decision of State Science and Technology
Committee under #9 by 5 June 1999.WT/ACC/AZE/5
Page 18
 Rules of preparation of application form for patent obtainment for industrial models, rules of
submission and consideration were approved by  the Decision of State Science and Technology
Committee under #5 by 8 May 1998.
 Question 26
WT/ACC/AZE/2 states that “The Economic Court of the Republic of Azerbaijan is the highest
law court for the settlement of economic disputes. It carries out control over activity ofrespective specialized law courts in an order envisaged by law.”
Are the Economic Court and its “respective spec ialized law courts” the judicial bodies where
appeals are heard of administrative disputes on matters covered by WTO agreements, e.g.,
customs valuation; classification; application of tariffs, taxes and customs charges; licensing or
other non-tariff measures, intellectual property rights, etc.
 Answer:
 In accordance with Article 132 of the Constitution of Azerbaijan the Economic Court is a
high court authority considering of economic disputes and it supervises respective specialized law
courts in the way described by the law.
 All procedural activities of judges of the Economic Court are identified by the procedural
legislation and Economic Court is not a specialized judicial court, it is a state court.
 Economic Court does not consider administrative disputes while carrying out of fair
judgement.  Therefore, the Economic Court can not be considered as a judicial body considering
administrative disputes.
 See answer above.
Question 27
Please describe the process be which importers and exporters appeal to a tribunal independent
of the Ministry where the first administrative action was taken.
 Answer:
 See answer above.
 IV. POLICIES AFFECTING TRADE IN GOODS
 1. Import Regulation
 (a) Registration requirements for engaging in importing
 Question 28
WT/ACC/AZE/2 states that “there is no registration requirement to become involved in
importing.”
Will Azerbaijan confirm that the former State monopoly in foreign trade has been abolished
and that no restrictions exist on the right of foreign and domestic individuals and enterprises to
import and export goods within Azerbaijan,  except as provided in WTO Agreements.WT/ACC/AZE/5
Page 19
 Answer:
 Azerbaijan confirms the abolishment of former soviet monopolists in foreign trade and that
there is no restrictions for foreign or local enterprises and individuals to import or export goods except
those prohibited by the Law.
Question 29
Will Azerbaijan confirm that individuals and firm s are not restricted in their ability to import
and export based on any official statement or registration of their scope of business, and any
criteria for business registration are available to the public?
 Answer:
 Azerbaijan confirms that there is no restriction on individuals or firm's ability to import or
export within the scope of their business or any official statement.
Question 30
Can Azerbaijan list and describe any requirements for licenses for certain activities,
particularly as they might relate to importation?
 Answer:
 Import export activities are carried out in accordance with laws of the Republic of Azerbaijan.
Information related to issuance of special permission (licence) for engagement in certain activities in
Azerbaijan is reflected in the answer to question below.
 (b) Characteristics of national tariff, customs tariff nomenclature (HS), types of duties,
general description of the customs tariff structure, weighted average level of duties on
main customs tariff groupings; application of m.f.n. tariff rates, tariff preferences
Question 31
Can Azerbaijan confirm that it uses HS 1996 ta riff nomenclature to the HS 1996 system to at
least the six-digit level?
 Answer:
 Since 1992 nine-digit code is used for goods in customs system in the Republic of Azerbaijan.
First six-digits of which are used in accordance with HS and first eight-digits are used in accordance
with the combined system used in the Council of Europe.  Last ninth digit is used to distinguish
economic features of the country.
 Milli Mejlis of Azerbaijan has adopted the Resolution by 3 May 2000 on accession to the
International Convention “On harmonization system of commentary and encode of goods”.  The State
Customs Committee has officially reported to the World Customs Organization on this matter.
Question 32
Has Azerbaijan supplied a copy of its applied tariff rates to the Working Party?  If so, is it in
electronic format?  If not, could this document be provided?WT/ACC/AZE/5
Page 20
 Answer:
 Azerbaijan will soon supply a copy of its applied tariff rates to the Working Party.
Question 33
Approximately what portions of Azerbaijan's central government revenues are accounted for
by tariff revenues?  By non-tariff fees collected on imports?  By VAT and excise taxes collected
on imports?
 Answer:
 Revenues collected from customs levies and taxes amounted for 719.6 billion Manat
(including: import levies - 271.3 billion Manat, VAT - 384.9 billion Manats, excise taxes - 12 billion
Manats other charges - 51.4 billion Manats) which constituted 20.2 per cent of total state revenues.
 Amount paid to the government for the special permission (licence) for importation of alcohol
beverages and tobacco products during year 2000 constituted 3,113,674,352 Manats.  During year
1999 this number was up to 5,868,467,727 Manats.  Amount from 1 July 1997 to 1 October 2000constituted 250,000,000Manats.
Question 34
 WT/ACC/AZE states that since 1997, Azerbaijan has had a simple tariff structure of two rates,
5 per cent and 15 per cent, with a number of products are granted duty free access.  It also
states that there are products which are exempt from duties (and VAT as well), including seeds;feeds; fertilizer; animals for breeding; pharma ceutical products; capital equipment; equipment
(including spare parts) used in agriculture; packaged baby food and syringes.
At what general level are duties applied to agricultural products?  What sorts of products are
imported duty free?
 Answer:
 Customs duties applied to imported agricultural products are different.
 Seeds, fertilizers for agriculture, forage, pedigree cattle, medicine, medicine used in
veterinary, biological preparations and veterinary equipment, also machines for agriculture, and their
spare parts, also raw materials used in processing of agricultural products - materials, equipment and
inventory are exempt from custom duties and taxes.
Question 35
To what extent is Azerbaijan prepared to bind its applied tariff rates in the context of
establishing its GATT Schedule of concessions?
 Answer:
 Custom tariff draft of Azerbaijan prepared in accordance with the preparation of the GATT
Schedule of concessions and submitted to the relative government authorities for their opinions and
comments.WT/ACC/AZE/5
Page 21
 Bind rates of maximum level all tariffs and other charges on imports can be achieved in
bilateral negotiations on market access.
 (d) Other duties and charges, specifying any charges for services rendered
 Question 36
WT/ACC/AZE/2 states that the following ad valorem  customs charges are imposed on exports
and imports:
- State enterprises pay an ad valorem  fee of 0.15 per cent of the customs value of
goods but no less than the equivalent of three minimum monthly wages;
- In-kind contributions to a joint venture are subject to the ad valorem  rate of 0.25
per cent but no less than the equivalent of two minimum monthly wages;
- Exports and imports in barter transactions are subject to the rate of 0.25 per
cent but no less than the equivalent of four minimum monthly wages.
Are these charges, when applied to imports, applie d in place of tariffs, or in addition to tariff
charges?
 Answer:
Number of types of levies and their rates were understated.
The decision of the Cabinet of Ministers of Azerbaijan "On amount of customs levies on
imports and exports" under #91 by 22 April 1998 regulates amount of levies for customs registration:
i. For customs registration of goods (including transport means, transported across the
customs border of the Azerbaijan Republic), as well as goods and loads, and transport
means, designated for non-commercial purposes, transported in non-accompanied
luggage and international mail sendings, the customs duties are levied in amount 0.15
per cent of their customs value (not least than US$10) in Manats by rate of theNational Bank of the Azerbaijan Republic.
ii. For the customs registration of goods and transport means, transported across the
customs border of the Azerbaijan Republic in the purposes of humanitarian and
technical assistance, and inter-transmission of electric energy as well as for formal
use of the diplomatic representatives, located in the Azerbaijan Republic and personaluse of the staff members of these representatives, the customs duties are not levied.
iii. For each additional sheet of the Customs cargo declaration irrespectively from type of
transaction the payment in amount of US$5 is levied by rate of the National Bank of
the Azerbaijan Republic.
iv. For customs registration of goods, transferred across the customs border of the
Azerbaijan Republic under the customs regime of transit, the customs duties of
amount US$30 and for each additional Customs cargo declaration – US$10 are levied
by rate of the National Bank of the Azerbaijan Republic.
v. For the delivery of the document about registration of transport means, imported (as
well temporary imported) by physical entities to the customs territory of the
Azerbaijan Republic, the customs payment is levied in the following amounts:WT/ACC/AZE/5
Page 22
- For trucks and cars, minibuses and buses – US$20;
- For other transport means – US$15. The payment is delivered by rate of the
National Bank of the Azerbaijan Republic.
vi. For the registration of goods and transport means out of the working time of custom
bodies of the Azerbaijan Republic and outside authorized place the customs duties are
levied of two amounts.
 Fees for customs registration shown above are used in addition to tariff charges.
 Question 37
WT/ACC/AZE/2 also states that convertible currency exports and imports are subject to the ad
valorem  rate 0.25 per cent but no less than $5 dollars  (or its equivalent converted at the official
rate of Manat).
How is this tax collected?  Why is it assessed, e.g., for revenue purposes, for services, etc.?  How
are the revenues collected used by the government of Azerbaijan?
 Answer:
 Customs fees rates for customs registration are being determined upon customs value of
goods. Collected amount is being transferred to the none-budget account of customs authorities and,
in coordination with the Ministry of Finance, being used for consolidation of financial-technical base
of customs authorities.
 Question 38
WT/ACC/AZE/2 states that goods shipped for further processing are subject to the ad valorem
rate of 0.25 per cent.
Is this a charge on goods imported for further processing where the output is exported, and
therefore the imports are exempted from normal customs duties?  Is the fee charged in place of
normal tariffs?
 Answer:
Goods imported for further processing are exempt from customs taxes and duties.  Forms of
application of customs fees for customs registration on those products are shown above.
Processing goods are not customs tax or duty imposed like other export goods.
Question 39
Are there any additional non-tariff charges, other than internal taxes applied to domestic goods
as well, applied to imports?  If so, please list them.
 Answer:
Certain charges are imposed on those products subject to import licensing and quantitative
restrictions.WT/ACC/AZE/5
Page 23
The Ministry of Economy of Azerbaijan fixes annual quotation on import.  Proportion of each
enterprise of total import volume constitutes 15 per cent.  Those are as follows:
Quantitative quotation on champagne  - 1,000,000 bottles, wine – 300,000 l., vodka –
700,000 l., ethyl spirit – 5,000,000 l., cigarettes and cigars – 4,500,000,000 pieces, beer – 9,000,000 l.,
cognac – 500,000 l.
Import licensing in Azerbaijan is regulated by the Decision of the Cabinet of Ministers of
Azerbaijan "On Rules of issuance of licence for importation of ethyl (eatable) spirit, alcohol
beverages and tobacco products to the Republic of Azerbaijan " under #33 by 4 March 1999.  This
provides licence charges for importation of tobacco products and alcohol beverages.  These are as
follows:
Beer 1 litre - 150 m., spirit 1 l. - 5 m., vodka 1 l. – 1,000 m., wine, champagne, cognac 1 l. –
1,000 m., for each 1,000 pieces of tobacco pr. - 500 m., accounted for as licence payment should be
paid to the Finance department of Baku city.
 Question 40
As confirmed in a panel ruling under GATT 1947,  non-tariff fees applied in connection with
importation and exportation should meet the requi rements of GATT Article VIII, i.e., that they
be related approximately to the cost of the service supplied, not to the value of the goods in
trade.
Azerbaijan should make clear to the Working Pa rty the purpose of these fees and whether or
not they are applied in place of normal tariffs or in addition to them.
 Answer:
 Charges shown above are applied in addition to normal tariffs.  The purpose of these charges
is to finance the customs authorities.
Question 41
We expect that, in the context of WTO accession , Azerbaijan will bind the maximum level of all
tariffs and other charges on imports not otherwise justified under WTO provisions.
 Answer:
 Bind rates of maximum level all tariffs and other charges on imports can be achieved in
bilateral negotiations on market access.
Question 42
In light of this, how does Azerbaijan plan addres s the current non-tariff ad valorem fees applied
to imports to meet these requirements or oth erwise bring them into conformity with WTO?
 Answer:
 It is currently under consideration.  We emphasize that till now, old system has been
simplified and unjustified rates have been decreased.WT/ACC/AZE/5
Page 24
 (e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 43
Please provide a comprehensive list of products, by HS number and description, that are
absolutely prohibited from being imported into Azerbaijan.
 Answer:
 Import and export of goods shown in table are carried out exclusively upon decision of the
Cabinet of Ministers of Azerbaijan.  These goods are not for export for credits, consignment, and
border trade transactions.
List
Goods import and export of which are carried out upon decision of Cabinet of Ministers
 Name of goods Code of Goods Nomenclature in
Foreign Economic Activity
 Weapons and military technology, spare parts for
construction 8710, 8802 (excluding 8802 11 100, 8802 12 100,
8802 20 100, 8802 30 100, 8802 40 100); 8803(excluding 8803 10 100, 8803 20 100, 8803 30 100,
8803 90 910); 8906 00 100, 9301, 9302, 9305 (with
only concern to military weapons); 9306 (excluding9306 10 000, 9306 29 100, 9306 30 910, 9306 30930); 9013, 9013 10 100, 9013 20 000, 9013 80000, 9014 (with concern to  only stuff of military
use); 8526 (with concern to only stuff of military
use)
 Powder, explosives, pyrotechnics and explosion items  3601 (excluding powder for hunting); 3602-3604
 Nuclear materials, technologies, equipment and
installations, special non-nuclear materials, sources of
radiation, including radio active elements 
 
 Drugs and psychotropic means, chemical poisons  
 Different types of scientific information, technologies,
materials and equipment used for creation of militarytechnology and weapons 
 
 Question 44
Concerning the need for a licence to import “chemi cal elements used for cultivation of plants,
medicines used in veterinary biological preparations and medical preparations:”
Please indicate the information importers are required to provide and the other requirements
they must meet to be able to receive the licence.
 Answer:
 Importation of chemical elements used for cultivation of plants is regulated by the Decision
#2 by 6 January 1998 of the Cabinet of Ministers "On approval of rules for issuance of special
permition (licence) for provision of services in plant protection sphere".WT/ACC/AZE/5
Page 25
 According to this decision, along with other forms of activity, sale , import and export of
chemicals used for cultivation of plants are also foreseen. Importers can bear commercial activity in a
way and period foreseen in by liccense issued according to this Rules.
 Only owner himslef can use issued licence (or copy of the licence).  Exception is only for
tempopary issuance of licence to people acting on behalf of the licence owner according to official
labour agreement (contract) or assignment contract.
 In order to obtain licence the importer should submit to the Ministry of Agriculture following
documents:
 Application for obtaining the licence:
Following should be reflected in the application:
- for legal entity - name of the legal entity, organizatiopnal-legal form of the enterprise,
legal address, account numbder and name of the bank, type of activity;
- For natural persons - name, family name, father's name, information on ID (type,
number, date and name of the authority issued, address), type of activity;
- Copy of registration documentation of the enterprise;
- Copy of certificate for state registration of the enterprise;
- Copy of the certificated issued by the tax authorities to the natural persons for
registration of the type of activity;
- Document apporing payment of the state fee for obtaining the licence;
- Copy of the document approving rights of  the applicant for use of objects shown in
the application (rights for ownership, rent, use etc.);
- Copy of the document approving appropriate speciality of the head of the enterprise
or experts attrected to this wok according to the type of activity foreseen in the
licence.
 Importation of the medicines used in veterinary, which are under state veterinary control, is
carried upon official permission of the Veterina ry Department of the Ministry of Agriculture
according to "Rules on importation and exportation of shipments under veterinary control in
Azerbaijan" registered in the Ministry of Justice under #102 by 21 May 1998 and approved by theAzerbaijan State Veterinary Committee by 12 May 1998.
 In order to bring goods under veterinary control into Azerbaijan, owner of shipments should
present to the Department for Veterinary of the Ministry of Agriculture a pack of documents consisted
of list of characteristics of goods, quantity of g oods, aim of the import, name of the importing country,
check point at the border, warehouses for shipments storage, 30 days prior to the shipment.Veterinary certificate agreed with the Department for Veterinary of the Ministry of Agriculture,
agreement reflecting all requirements of the Department for Veterinary of the Ministry of Agriculture,
terms for quality, also certificates for quality and origin should be also enclosed to the application.
Along with this, medicines used for veterinary are being registered according to Provision "On
expertise and registration of the medicines used in biological preparations produced outside
Azerbaijan" approved by the Veterinary Committee by 6 April 1993.  Foreign preparations haven't
passed the expertise and without document of registration cannot be obtained by the Azerbaijan side.
 According to the Decree of the Cabinet of Mini sters of Azerbaijan "On approval of issuance
of special permission (licence) for pharmaceutical activity" by 1 May 1998, all imported medicine
preparations should be registered and permitted by the Ministry of Health. In order to bear
pharmaceutical activity in Azerbaijan, first medicine preparations to be imported to Azerbaijan should
be registered in the Ministry of Health.  Followings are necessary to be presented for registration:WT/ACC/AZE/5
Page 26
- Application - country, name of the firm-applicant; firm producer, country; firm patent
owner; terms of effectiveness of the patent; name of the preparation; international
non-patented name; main synonyms; contents of preparations; form of medicine; dose
of the medicine preparation; methods of treatment with this preparation (oral,
injection etc.); main comments on methods of treatment with this preparation; terms
for keeping and requirements reflecting rules for keeping preparations; standardpackaging;
- Document approving registration of the preparation in country origin of the applicant
or in any other country (original or 3 copies in English approved by the notary (or in
Russian);
- Instructions for medical use of preparation - one copy in Azerbaijani (or in Russian)
and one copy in English (or the language of the original);
- Documents reflecting results of pre-clinical and clinical experiments on preparations,
normative documents used while bearing control over quality of preparations, 3
copies in Azerbaijani (or in Russian) and 3 copies in English (or the language of
original).
Samples of preparations in 5 packages.
After this, in order to bear pharmaceutical activity in Azerbaijan, special permission (licence)
should be obtained.  Issuance of licenses is regulated by the Ministry of Health according to the
Decision of the Cabinet of Ministers "On approval of rules for issuance of special permission
(licence) for pharmaceutical activity" by 1 May 1998.
In order to obtain licence, applicant should submit following documents to the Ministry of
Health:
- Application for licence -
- for legal entities - name of the legal entity, organizational-legal form of the
enterprise, legal address, account number and name of the bank, type of
activity
- for natural persons - name, family name, father's name, information on ID
(type, number, date and authority issued, address), type of activity;
- Copy of registration documentation of the enterprise;
- Copy of the certificate for the state register of the enterprise;
- Copy of the certificate issued by the tax authorities to the natural persons for
registration of the type of activity;
- Document approving payment of the state fee for obtaining the licence;
- Copy of the document approving rights of  the applicant for use of objects shown in
the application (rights for ownership, rent, use etc.).
Requirement of documents not foreseen by these rules is prohibited.
Question 45
Please outline the role of other government agencies in setting and evaluating the criteria
applied for receiving import licenses for these products.
 Answer:
 Annex 2 of the "Rules for regulation of import-export transaction in Azerbaijan" approved by
the Decree of the President by 24 June 1997 covers actions with medicine used veterinary, biological
preparations and veterinary means, medicine preparations, medical means and chemicals used inWT/ACC/AZE/5
Page 27
cultivation of plants.  Importation of chemical elements used for cultivation of plants, veterinary
elements and biological preparations is carried out upon permission of the Ministry of Agriculture,
also importation of medical preparations, medicines used in veterinary, medical means is carried out
upon permission of Ministry of Health and registra tion of contract in the Ministry of Commerce.
 As a final stage, medical preparations used in veterinary can be applied only after their
expertise and registration in by the Department for Veterinary of the Ministry of Agricultureaccording to Article 20 of the Law of Azerbaijan "On Veterinary".
 Importer should submit following documents when obtaining licence from the Department for
Veterinary of the Ministry of Agriculture:
- agreement concluded between seller and buyer;
- certificate of origin;
- certificate of quality;
- laboratory analysis (from importer);
- document (licence) approving state register of the preparation in Azerbaijan.
 Question 46
Please provide additional information on Azerbaijan’s import licensing and quantitative
restriction system for imports of alcohol (ethyl) spirit, alcohol beverages and tobacco products.
How are the quantitative quotas determined?  Are they delineated by country or are they
global?  Does the Ministry of Economy determ ine these quantities?  Are a limited number of
state-authorized importers in control of the trad e?  How is this system consistent with the
requirements of Articles III and XI of the GATT?
 Answer:
 In accordance with the decision of the government each year the Ministry of Economy fixes
quotes for importation of alcohol beverages, ethyl (eatable) spirit and tobacco products during coming
year by taking into account prognosis on production and sale of those items and reports to the
Ministry of Trade, Ministry of Taxes and to the Ministry of State Property.
 Licenses are issued to each enterprise for impor tation of goods constituting not more than 15
per cent of total amount of quota annu ally fixed by the Ministry of Economy.
 Domestic production of same goods to be imported and need for those in domestic market are
taken into account while determination of quantitative quotas by the Ministry of Economy.  Every
month after each quarter the Ministry of Commerce provides information to the Ministry of State
Property and the Ministry of Economy on enterprises awarded with licenses for importation of ethyl
(eatable) spirit, alcohol beverages and tobacco products.  The Ministry of State Property controls theimportation of goods through by licenses issued by the Ministry of Commerce and every month after
each quarter provides information to the Ministry of Economy.
 Quotas are global. There is no importer with state level trade controlling authority in this
sphere, on the contrary, private importers are allowed to have these licenses and are presently
obtaining them.  These licenses are granted by the Ministry of Commerce.
 In accordance with the legislation, importation of ethyl spirit, alcohol beverages and tobacco
products is carried out through licensing.  This measure is carried out in order to balance the turnoverof alcohol beverages and tobacco products.  Licensing of these products is also aimed to prevent theirWT/ACC/AZE/5
Page 28
illegal import to the country, violation from taxes, prevent unfair competition and protect consumer's
rights.
 Considering the possible danger of alcohol beverages and tobacco products to the human's
life, it's worth no note, that licensing is not to restrict importation of these products, it is aimed to
carry out effective control and provide health protection of citizens of the country.
 We consider this measure to be complying with sections b and d of Article XX of GATT
1994.
 Also, licensing of the importation of these products, is at the same time a control instrument
over quotation.
 For notes, licensed granted in 1999 constituted very little part of fixed quotas.  So, licenses
were granted to champagne, wine, vodka and other hard liquor, ethyl spirit, cigarettes and cigars, beer
and cognac products.  Which made 1.2 per cent, 10.2 per cent, 36.8 per cent, 26.4 per cent, 84 per
cent, 33.8 per cent, 0.1 per cent of their relative fixes quotas.
 Question 47
WT/ACC/AZE/2 states that documentation from 5 administrative bodies is needed to receive a
licence from the Ministry of Agriculture for the importation of alcohol and tobacco.  The
Agreement on Import Licensing, Article 1, sectio n 6 of the WTO states, applicants should have
to approach no more than 3 administrative bodies for granting of a licence.
What steps is Azerbaijan taking to address this point?
 Answer:
 We apologize for mistake made in the Memorandum "On foreign Trade Regime of
Azerbaijan", Annex 3 (Licensing of importation).  Information on procedures of licence issuance for
production of alcohol beverages and tobacco products is reflected in section VII of Annex 3 and hasno concern to regulation of foreign transactions.  According to information above for importation of
alcohol beverages and tobacco products, importers should apply only to the Ministry of Commerce.
 Question 48
Annex 3 (Information on Import Licensing Proce dures), part VI (Provision of Licenses) states
that in Azerbaijan, “Licenses are issued depending upon the import demand of the countryaccording to each agreement (in case of lack of  agreement in the document certifying the deal)
and their validity might be up to 1 year”
Could Azerbaijan please clarify what this statement means?  How is import demand
determined, and what is meant by “agreement in  the document certifying the deal”?  Is this
licensing automatic or non-automatic? Does it restrict quantities imported?
 Answer:
 Determination of needs for goods subject for quota (alcohol beverages and tobacco products)
is carried out by the Ministry of Economy upon statistics of domestic production and experience of
previous years. Each licence is granted based on final sale contract (agreement) or additional sale
contract (document approving the transaction).WT/ACC/AZE/5
Page 29
 For more information, see question above.
Question 49
Please provide an outline of what an importer ha s to do to get a licence in Azerbaijan, including
a list of agencies responsible for each type of licence granted, the amount of licensing fee and the
name of the publication where this information can be found.
 Answer:
 The "Rules of issuance of licenses for importation of ethyl (eatable) spirit, alcohol beverages
tobacco products to the Republic of Azerbaijan" was approved by the Decision of the Cabinet of
Ministers under #33 by 4 March 1999.  Ethyl (eatable) spirit, alcohol beverages (excluding beer) and
tobacco products are subject to licensing while impor tation to Azerbaijan.  The Ministry of Commerce
is the body granting the licence.
 Following documents should be submitted to the Ministry of Commerce for licence issuance:
i. Application for licence;
- For legal persons - name of legal person, legal form of enterprise, statistics
code, legal address, number of settlement account, name of bank, information
on type of activity with identification of code and amount of goods (if
activity to be carried out in different places, addresses and numbers of these
places should be noted in the application).
- For natural persons - name, father's name, family name, information on ID
(number, date of issuance, date of expiry, issued authority, address)
information on type of activity with identification of code and amount of
goods (if activity to be carried out in different places, addresses and numbers
of these places should be noted in the application).
ii. Original and copy of contract (if not contract, document approving the transaction)
signed with foreign entity (party);
iii. Copy of effective licence granted for whole sale and retail sale accordingly to type of
activity noted in the application (in a way foreseen in by the legislation);
iv. Copy of documents related to establishment of this enterprise;
v. Copy of certificate of state registration of enterprise;
vi. Copy of certificate on registration of natural person of engagement in
entrepreneurship activity by tax authorities;
vii. Document testifying the payment of state charges for licence issuance
viii. Copy of document testifying the rights of applicant for use of each of objects noted in
the application (ownership, rent, bases of use etc.)
Licenses are granted annually.WT/ACC/AZE/5
Page 30
Application and above shown documents are excepted by the Ministry of Commerce and
registered in special book, reviewed, and decision on insufficiency or issuance of licence no later than
15 starting from the date of the decision, if there is no reason to refuse the issuance.
If insufficiencies in documents are found, the applicant gets the written notification on this,
after next submission of documents, they are being reviewed again within 5 days and appropriate
decision is being made.
In case of refusal based on above shown rules, the applicant gets the written notification with
clear identification of reasons for refusal.
State charges for issuance of special permission (licence) are as follows:
Ethyl (eatable) spirit 50*
Beer 1,500*
Vodka, alcohol, champagne and other alcohol beverages 10,000*
Cigarettes made of tobacco or its substitutes 500**
* for each decilitre, in Manats
** for each thousand pieces, in Manats
In accordance with national legislation, laws of Azerbaijan, decrees and provisions of the
President of Azerbaijan are published in official publishing houses like "Azerbaijan" newspaper and
"Collection of Legislation of Azerbaijan".
Resolutions of the Cabinet of Ministers are published in the official publishing houses like
“Collection of the legislation of the Republic of Azerbaijan” and “Republic” newspaper also by other
publishing houses when immediate and wide broadcast of the information is necessary.
Normative-legal acts of the central executive authorities are being published in the “Bulletin
of normative-legal acts of the executive authorities of Azerbaijan”.
Relative executive authorities and Milli Mejlis of Azerbaijan can officially publish their
adopted normative-legal acts in the way provided by the legislation of Azerbaijan.
 Normative legal acts of relative executive authorities or other bodies are published by them in
a volume necessary for wide acquaintance of by citizens.
 Normative legal acts can also be published by any publishing houses or broadcasted by mass
media.
Question 50
Azerbaijan states in WT/ACC/AZE/2 that only alcohol and tobacco were subjected to licensing,
but also noted that weapons and certain chemicals were also prohibited unless a licence was
acquired. How are licenses acquired for these products?
 Answer:
 Importation of weapons and certain chemicals to Azerbaijan is not prohibited.  It is carried
out exclusively upon permission of the Cabinet of Ministers.WT/ACC/AZE/5
Page 31
Question 51
It appears that Azerbaijan’s current licensing sy stem may not meet the transparency or other
procedural requirements of the WTO Agreement on Import Licensing Procedures.  In addition,
it appears possible that the system acts as a no n-tariff restriction on the quantity of imports,
which is not consistent with Article XI of the GATT.
Azerbaijan should address these issues compreh ensively, and indicate to the Working Party
how it intends to bring these measures into line with WTO provisions.
 Answer:
 Azerbaijan will review its licensing system for its compliance with the WTO requirements.
 Moreover, in addition to said above, Azerbaijan regulates importation of used weapons,
radioactive elements, drugs and other stuff to its territory based on Articles XX and XXI of GATT.
 In accordance with the legislation, importation of ethyl spirit, alcohol beverages and tobacco
products is carried out through licensing.  This measure is carried out in order to balance the turnoverof alcohol beverages and tobacco products.  Licensing of these products is also aimed to prevent their
illegal import to the country, violation from taxes, prevent unfair competition and protect consumer's
rights.
 Considering the possible danger of alcohol beverages and tobacco products to the human's
life, it's worth no note, that licensing is not to restrict importation of these products, it is aimed tocarry out effective control and provide health protection of citizens of the country.
 We consider this measure to be complying with sections b and d of Article XX of
GATT 1994.
 (h) Customs valuation
 Question 52
We have reviewed the material contained in WT/ACC/AZE/2.  In the absence of relevant
legislation, we had only the information provided in Annex 4 of that document on which to base
the following comments.  We would appreciate Az erbaijan’s help in clarifying the current scope
of its implementation of the WTO Agreement on Customs Valuation.
 Please provide the following documentation for review by the Working Party:
- Customs Code of the Republic of Azerbaijan dated 6 October 1997;
- Law on Customs Tariff No. 1064 dated 20 June 1995; and
- The Resolution of the Cabinet of Ministers “Rules of application of the customs value of
goods imported to and exported from the customs territory of the Republic of
Azerbaijan.”
 Answer:
 Copies of these legislative acts have been provided to the Secretariat of the WTO.WT/ACC/AZE/5
Page 32
 Question 53
Articles 1 and 8 of the WTO Valuation Agreement, concerning transaction value and the
additions to transaction value:It does not appear that these provisions are fully implemented.   We specifically note that all of
the provisions concerning related parties, Article 1.2 of the WTO Valuation Agreement, are
missing.  Specifically, Articles 8.1(c) and (d) of the WTO Valuation Agreement, royalties andlicence fees and proceeds of any subsequent resale, disposal or use of imported goods, are not
fully implemented.
 Article 5 of the WTO Valuation Agreement, concerning deductive value
It does not appear that these provisions are fully implemented.   It appears that Azerbaijan has
not adequately distinguished the three different methods of applying deductive value under
Article 5 of the WTO Valuation Agreement.  Additi onally, with regard to Article 5.1(a) (i) of the
WTO Valuation Agreement, Azerbaijan has not corre ctly implemented this provision by stating
that “either the commissions usually paid or agreed to be paid or the additions usually made for
profit and general expenses in connection with sales.”
Article 6 of the WTO Valuation Agreement, concerning computed value:
It does not appear that these provisions are fully implemented.   With regard to Article 6.1(a)(b)
of the WTO Valuation Agreement, Azerbaijan has stated that “an amount for profit andgeneral expenses equal to that usually reflected in  sales of goods of the same class or kind as the
goods being valued which are made by producers in  the country of exportation for export to the
country of importation.”  This does not correctly implement the Article, and it appears that
Article 6.2 of the WTO Valuation Agreement is not implemented at all.
Article 7 of the WTO Valuation Agreement, co ncerning the “fall back method” or valuation
using reasonable means:
It does not appear that these provisions are fully implemented.  Azerbaijan has stated that
imported goods will be valued based on world pri ces.  This is not consistent with the provisions
of the Agreement.  Article 7.2 of the WTO Valuation Agreement concerning the prohibited
methods of valuation has not been implemen ted.  Moreover, Azerbaijan has listed some
valuation methods under this provision, which are prohibited under Article 7.2 of the WTO
Valuation Agreement.
Article 9 of the WTO Valuation Agreement, conc erning currency conversion, does not appear to
be implemented.
Article 10 of the WTO Valuation Agreement, concerning confidential information, does not
appear to be implemented.
Article 11 of the WTO Valuation Agreement, concerning the right of appeal:
Azerbaijan states that a right of appeal exists as specified by the Customs Code of the Republic
of Azerbaijan.  Without reviewing this docume nt, we are uncertain is the right of appeal is
within the Customs authorities or to a judicial bo dy.  Additionally, it is unclear if the importer’s
right of is without penalty.  The WP needs to review Azerbaijan’s legislation concerning right of
appeal to ensure that it provides that the impo rter has a right of appeal without penalty to theWT/ACC/AZE/5
Page 33
customs administration and the judicial authorit y and that the applicant is given written notice
of the decision on appeal as set forth in Article 11.2 and 11.3 of the WTO Valuation Agreement.
Article 14 of the WTO Valuation Agreement.
It does not appear that Azerbaijan has implemented the Interpretative Notes set forth in Annex
I of the WTO Valuation Agreement.  Article 14 of the WTO Valuation Agreement stipulates
that the Interpretative Notes to the Agreement fo rm an integral part of the Agreement and the
Articles are to be read in connection with the Interpretative Notes.  Thus, the text of the
Interpretative Notes must form part of the implementing legislation.
Article 15 of the WTO Valuation Agreement, which concerns Definitions, does not appear to be
fully implemented.We note that Azerbaijan has implemented the definition of related parties found in Article 15.4
of the WTO Valuation Agreement, but that other definitions are not provided for.
In Annex 4, Azerbaijan states that “[costs of clar ification of declared customs cost or provision
of additional information to tax authorities of the Republic of Azerbaijan shall be borne by the
declaring person.”
It would appear from this that Azerbaijan is imposing a charge or a cost on the importer if
Customs requires further information on a subject transaction.  This may be inconsistent with
Article VIII of the GATT 1994.  We require clarification on the meaning of this statement andany costs or charges that will be imposed.
Additionally, we note that Azerbaijan has not implemented the Committee on Customs
Valuation Decision 4.1 concerning the “Valuation  of Carrier Media Bearing Software for Data
Processing Equipment” to provide that only the cost of the carrier medium would be accounted
for in the customs value, or the “Decision on the Treatment of Interest Charges in the Customs
Value of Imported Goods.”
We encourage Azerbaijan to implement both of these Decisions.
 Answer:
Please note the below answer as reply to questions on customs valuation.
The determination system of the customs value (customs valuation) of goods is bases on
general principles of customs valuation established by the Law of Azerbaijan “ On Customs tariffs”.
Normative-legal base for the customs valuation includes Customs Code approved in 1997 by Milli
Mejlis, which is the legislative body of Azerbaijan, the Law of Azerbaijan “On Customs Tariffs”
adopted in 1995, also other decisions and normative documents adopted by the state executive bodies
like Cabinet of Ministers and State Customs Committee based on above documents.  Along withbeing similar to normative legal acts adopted in CIS countries such as Russia, Uzbekistan etc.,
documents mentioned above do not fully reflect international experience.
In March 2000 State Customs Committee organized TACIS program with participation of the
European Customs experts to work on legislation on customs valuation of Azerbaijan in order to bring
it into full conformity with the requirements of Article VII "On Customs Valuation" of the
GATT/WTO.  Second stage of this work was implemented in July-August of 2000.  As a result of
these measures, also taking recommendations from the United States of America into considerationWT/ACC/AZE/5
Page 34
works on preparation of the coordinated document on customs valuation are being carried out and this
document is going to be submitted to the Parliament for the approval.
 It needs to be noted, that principal editing errors and grammatical mistakes made while
translation of the legislation on customs into English language were displayed by the European
experts while initial discussions and were underlined as points injuring the general outlook of the
legislation.
 (i) Other customs formalities
Question 54
Does Azerbaijan require authentication of import documentation by consular officials or other
institutions in the country of export?  If so, what fee, if any, is charged?
 Answer:
Azerbaijan does not require authentication of import documentation by consular officials or
other institutions of exporting country.
 (j) Pre-shipment inspection
Question 55
Please describe how, and indicate why, importers would use the services of a pre-shipment
inspection firm to meet consumer protection  requirements and technical standards. Please
indicate what requirements for importing into Azerbaijan would cause this to happen.
 Answer:
As it is said in Section IV, Paragraph 1(j) of the Memorandum "On Foreign Trade Regime of
the Republic of Azerbaijan" Azerbaijan does not ap ply pre-shipment inspection services to imports.
Question 56
Why would pre-shipment inspection for veterinary controls be used?
 Answer:
 We apologize for incorrect information concerning use of pre-shipment inspection for
veterinary control in Azerbaijan provided in the Section IV, Paragraph 1(j) of the Memorandum.
Azerbaijan does not provide pre-shipment inspection for any purpose.
 (k) Application of internal taxes on imports
 Question 57
Azerbaijan has stated that “the same rules of ta xation apply to domestically produced goods as
well as imports. There are no internal ta xes levied specifically on imports.”
Please list all internal taxes applied to imports, and provide the specific amount of each
corresponding tax.  As appropriate, please list specific products by HS item number.WT/ACC/AZE/5
Page 35
 Answer:
 In accordance with new Tax Code by 1 January 2001 VAT is applied by 18 per cent;
 Following goods, works and services imported to and exported from Azerbaijan are VAT
levied by zero (0) per cent:
- export of goods;
- transportation of international cargo and passengers, also services for transportation
or other kind of services like provision of fuel or other technical details for
international flights and other related works;
- goods, works, provision of services and their export paid for by financial grants
provided from abroad.
Tax Code stipulates exemption of following goods from VAT:
- importation of national or foreign currency (except for numismatics purposes) and
stocks;
- importation of gold, currencies, money bills of the Republic of Azerbaijan printed in
other country to be kept in the National Bank of Azerbaijan;
- purchasing of goods, implementation of wo rks, provision of services and their
importation covered by the portion of Azerbaijan in projects implemented on credits
and loans provided by international organizations, governments of foreign countries,also by foreign natural and legal persons upon interstates and intergovernmental
agreements;
- importation of goods subject of financial leasing agreements;
- provision of services, carrying out of works, importation of goods by the National
Bank of Azerbaijan while implementation of responsibilities foreseen by thelegislation;
- other forms of importation can be exempt from VAT by the Cabinet of Ministers.
List of VAT exempt imports to Azerbaijan produced in
countries other than CIS approved by the same decision
 Code of goods by their
nomenclature for foreign economic
activity Name of goods
 Group 84
  Nuclear energies, equipment and mechanisms means, their spare parts.
 Except 841451900; 841510000; 841581900; 841720; 841810900;
841821-841829000; 841830910; 841830990; 841840910; 841840990;
841850; 841891000; 842211000; 842310100; 842381500; 8450;845210; 8469; 8470; 847110; 847120000-847120600; 847191000-847191900; 847199; 8472; 8476
 Group 85  Electric machines and mechanisms, their spare parts
 Except 850710910;850810; 8509; 85010; 8511; 8512; 8516; 851710-
851720000; 851781100; 8518; 8519; 8520; 8521; 8522; 8523; 8524;
852719000; 852721; 852731; 852732; 852739; 852810000-
852810690; 852810730-852810980; 852820000; 852820200;852820730-852820990; 852910200-852910700; 8539;
 Group 86  Railroad trains and locomotives, their spare parts and means, road
constructions for railroad and train net,
 Group 87  On land  (except railroad and train means) transportation means except
8702; 8703; 8711; 8712; 8714
 Group 88  Flying apparatus, cosmos apparatus, their spare partsWT/ACC/AZE/5
Page 36
 Code of goods by their
nomenclature for foreign economic
activity Name of goods
 Group 89  Ships, boats and other on water transportation means except 8903
 - In needs to be pointed out, that new table of excise rates is worked out.
 Table 1. Excise rate for excise goods of non-CIS production and automobiles under excise
 Names of excise products  Rates of excises,  per cent
 Vodka  65
 Eatable spirit  90
 Brandy  65
 Wines  45
 Hard liquor  40
 All sorts of wine  40
 Liquor  65
 Beer  40
 All types of tobacco products  50
 
 Table 2. Excise levied oil products with concern to country of origin and exporting country
 The name of products subject to excise tax  Rates,  per cent
 Aircraft petrol B-92, B-91  65.49
 Gasoline AU-95,AU-98  65.03
 Gasoline AU-92, AU-93  65.23
 Gasoline AU-72, AU-76  64.76
 Diesel fuel  26.4
 Reactive engine fuel  0
 Kerosene  33.45
 
Question 58
Please describe the point of sale and formula for application of excise taxes on (a) imports and
(b) domestic goods.
 Answer:
About excise rates also list of goods subject to excise tax and formula for excise application
on domestic products and their sale:
In accordance with the Tax Code excise rate are determined by the Cabinet of Ministers. The
Cabinet of Ministers is now preparing excise rates for excise goods.
Excise goods export of which is tax levied by zero (0) rates:- Excise levied goods in accordance with Tax Code are as follows:
- drinkable spirit, yeast, all sorts of beer and alcohol beverages
- tobacco products
- oil products
Followings are excise tax exempt:WT/ACC/AZE/5
Page 37
- importation of 3 litres of alcohol and 3 blocks of cigarette by natural person for
personal use, also fuel in the tank of the vehicle driven by persons to Azerbaijan
amount of which is marked in its technical passport;
- goods in transit transferred through Azerbaijan;
- temporary importation of goods to Azerbaijan, except goods aimed for further re-
export (excise taxes for re-export goods are paid while their importation, and paidamount is being returned to the exporter by customs authorities within 15 days upon
re-export of these goods);
- goods aimed for re-export and guaranteed by deposit.
In accordance with the Tax Code, the amount of taxation of goods produced in Azerbaijan is
the price no less than the wholesale market price (excluding excise and VAT) charged or to be
charged by the taxpayer of the client or any other person, also by barter.
Excise tax for goods produced in Azerbaijan is accounted by following formula:
A = B x A
1
Where A - excise amount
B - excise tax levied turnover (without VAT or Excise)
A1 - level of excise tax fixed for goods
Question 59
Does Azerbaijan use the destination principle in the application of VAT and excise taxes to
imports?  Are imports from any source, e.g., Russia or other CIS, exempted from VAT and/or
excise taxes?
 Answer:
 According to Tax Code, indirect taxes on goods imported to Azerbaijan are levied by
destination principle and there is no exception for any country.
Question 60
Does Azerbaijan exempt exports from VAT or exci se taxes?  If so, under what conditions, e.g.,
are all exports exempted or only those to selected destinations?
 Answer:
 As it is shown above, in accordance with the Tax Code effective by 1 January 2001, all goods
with no concern to their destination are levied by zero (0) level of VAT and excise tax.
 (l) Rules of origin
 Question 61
Azerbaijan states that it currently has no regime  on rules of origin.  We expect, however, that
Azerbaijan will implement WTO-consistent provisio ns for the application of rules of origin for
imports prior to its WTO accession.  In this regard, it is particularly important that Azerbaijan
enact regulations to address the procedural req uirements of the Agreement for all imports, inWT/ACC/AZE/5
Page 38
particular the requirements of Article 2(h) and Annex II, paragraph 3(d), which require WTO
members to provide, upon request and prior to th e time of importation, an assessment of the
origin of the import and outline the terms under which it will be provided.
Could Azerbaijan please indicate how it intends to implement the requirements of Article 2(h)
and Annex II, paragraph 3(d), and other procedural requirements of the Agreement on Rules of
Origin prior to WTO accession?
 Answer:
Chapter V, Articles 24-32 of the Law “On Customs tariffs” of Azerbaijan provides rules on
determination of country of origin for goods, level of criteria for processing, certificate of origin etc.
and assessment is carried out based on this law.
At present, draft Rules “On determination of country of origin of imports to the customs
territory of the Republic of Azerbaijan” is prepared and submitted to the Cabinet of Ministers for
approval.  Above rules are prepared in consistence with the procedures reflected in the Agreement OnRules of Origin of the WTO.
(m,n,o) Anti-dumping, countervailing and safeguard regimes
 Question 62
We look forward to reviewing Azerbaijan’s draft law on antidumping.
Please update the Working Party on Azerbaijan’s plans to develop legislation in the other areas.
 Answer:
 At present, draft law on antidumping is being worked out.  Draft law will be sent to the
Secretariat of the WTO when it is necessary.  It is planned now to work out law on safeguard regime.
Question 63
Can Azerbaijan confirm that it will not apply any anti-dumping, countervailing or safeguard
measure until it had notified and implemented appropriate laws in conformity with the
provisions of the WTO Agreements on the Impl ementation of Article VI, on Subsidies and
Countervailing Measures, and on Safeguards?
 Answer:
 Azerbaijan confirm that it will not apply any anti-dumping, countervailing or safeguard
measure until it had notified and implemented appropriate laws in conformity with the provisions of
the WTO Agreements on the Implementation of Article VI, on Subsidies and Countervailing
Measures, and on Safeguards.WT/ACC/AZE/5
Page 39
 3. Internal policies affecting foreign trade in goods
 (b) Technical regulations and standards, including measures taken at the border with
respect to imports; and
 (c) Sanitary and phytosanitary measures, including measures taken with respect to imports
 Question 64
The WTO Agreement on TBT establishes fundamental rules and procedures regarding the
development, adoption, and application of voluntary standards, mandatory standards
("technical regulations"), and the procedures ("conformity assessment procedures") used to
determine whether a particular product meets such standards.  It is imperative for governments
to establish a coordinated approach to the development, adoption and application of standards,
technical regulations and conformity assessment procedures to ensure that all ministries,
agencies, and private bodies involved in these ac tivities are aware of the obligations and abide
by them on an ongoing basis.
Please complete the checklist found in WT/ACC/8, identifying specific provisions in
Azerbaijan's legal and administrative system  that address the requirements of the WTO
Agreements on Technical Barriers to Trade and Sanitary and Phytosanitary Measures.
 Answer:
 We don't consider the completion of the checklist found in WT/ACC/8 is necessary so far.
Question 65
In addition to the above, could Azerbaijan submit  a detailed plan of action for achieving full
implementation of the TBT and SPS Agreements fo r those areas in which additional action will
need to be taken in order to ensure co mpliance with the TBT and SPS Agreements?
 Answer:
 The detailed plan of action for achieving full implementation of the TBT Agreement is
described below.
 Table of Measures on Implementation of the
Agreement of the WTO on Technical Barriers to Trade
 №  Type of measures Implementation
period Responsible
departments for
implementation Note
 1  Improvement and perfection of the
legislation base on standardization andcertification   
 1.1  Preparation of the Laws of the Republic of
Azerbaijan “On Standardization” and “On
Certification”  2nd quarter of
2001 Standardization
and technical
informationdepartment,certification andaccreditationdepartment Send document
drafts to the
Cabinet ofMinisters forreviewWT/ACC/AZE/5
Page 40
 №  Type of measures Implementation
period Responsible
departments for
implementation Note
 1.2  Elaboration of the Law of the Republic of
Azerbaijan “On technical barriers to trade”  1st quarter of
2001 Standardization
and technicalinformation
department Send document
drafts to theCabinet of
Ministers for
review
 1.3  Preparation of the offers on admission of
the documents as national legislative andnormative-technical documentation similarto the documentation adopted in theinternational, regional and national
organizations on standardization,
certification and metrology of the advancedforeign countries and determiningrequirements to the similar kind of goods,evaluation of conformity, ecologicalsecurity etc. Permanent  Standardization
and technicalinformationdepartment,certification and
accreditation
department Send document
drafts to theCabinet ofMinisters forreview
 1.4  Analyzing of acting legislation (Laws,
resolutions) on certification and
standardization for their conformity withthe requirements of the Agreement ontechnical barriers to trade in order toprepare offers to amend changes andadditions to the mentioned above 2000-2001  Standardization
and technical
informationdepartment,certification andaccreditationdepartment Send document
drafts to the
Cabinet ofMinisters forreview
 2  Perfection and development of national
systems on standardization and
certification   
 2.1  Making changes to the standardization
founding documentation:   Adoption of
changes tostandards
  AZS 1.0-96. “State standardization system
of the Republic of Azerbaijan Mainprovisions.” 1-st quarter of
2001 Standardization
and technicalinformationdepartment, Adoption of
changes tostandards 
  AZS 1.2-96. “State standardization system
of the Republic of Azerbaijan Elaboration
method of the state standards”.  2-nd quarter of
2001 Standardization
and technical
informationdepartment, Adoption of
changes to
standards
 2.2  Making changes to the certification
founding documentation:  Certification and
accreditationdepartment By adoption of
changes to thedocument
 2.2.
1 RD 001-93 “National system of
certification AZS.  Main provisions.”  2-nd quarter of
2001 Certification and
accreditationdepartment By adoption of
changes to thedocument
 2.2.
2 RD 002-93 “National system of
certification AZS.  Requirements to the
certification body and methods of itsaccreditation.” 2-nd quarter of
2001 Certification and
accreditation
department By adoption of
changes to the
document
 2.2.
3. RD 004-93 “National system of
certification AZS.  Requirements to theresearching laboratories (centers) andmethods of their accreditation.” 2-nd quarter of
2001 Certification and
accreditationdepartment By adoption of
changes to thedocumentWT/ACC/AZE/5
Page 41
 №  Type of measures Implementation
period Responsible
departments for
implementation Note
 2.2.
4. RD 005-93 “National system of
certification AZS.  Methods ofimplementation of the State register
system.” 2-nd quarter of
2001 Certification and
accreditationdepartment By adoption of
changes to thedocument
 2.2.
5. RD 008-94 National system of certification
AZS.  Method of admission of certifiableand accreditable objects 2-nd quarter of
2001 Certification and
accreditationdepartment By adoption of
changes to thedocument
 2.3.  “National system of certification AZS.
The way of payment of works oncertification and accreditation”. 1-st quarter of
2000 Certification and
accreditationdepartment By adoption of
documents
 2.4.  Elaboration of drafts of normative
documents of the Republic of Azerbaijan:   
  “Order in planning of works on
standardization”.
  2001  Standardization
and technical
information
department By adoption of
documents
 2.5  Preparation of offers on regulation of
nomenclature of mandatory certifiablegoods 2000-2001  Certification and
accreditationdepartment Send the
documentationdrafts to theCabinet ofMinisters forreview
 3  International cooperation    
 3.1  Participate in the work of working group
on technical coordination and
standardization policy of the UN EuropeanEconomic Commission   Merging
department,
Standardizationand technicalinformationdepartment 
 4  Harmonization of national standards with
the international standards   
 4.1  Determine the list of international and
national standards of other countries on
goods and services in order to implement
them directly or harmonize them with thestandards of the Republic of Azerbaijan   Standardization
and technical
information
department,technicalcommittees 
 4.2  Harmonization of current standards
  2000-2004  Technical
committees onstandardization 
 5  Cooperation with the CIS countries within
the frame of the Intergovernmental Union
on standardization, certification and
metrology   
 5.1  Participation in the elaboration of the
standards on goods primarily important forthe development of the country economysuch as petrol, oil products, gas, cotton, tea,tobacco, oil machinery construction etc. Permanently  Departments of
Azerbaijan StateStandardizationAgency andtechnical
committees on
standardization Adoption of
standardsWT/ACC/AZE/5
Page 42
 №  Type of measures Implementation
period Responsible
departments for
implementation Note
 5.2  Participation in the elaboration of the
program on transition from the mandatorystandardization to the volunteer 2000-2002  Departments of
Azerbaijan StateStandardization
Agency and
technicalcommittees onstandardization By adoption of
the program
 6  Organization and improvement of the
activity of the inquiry point   
 6.1  Adoption of international, regional and
national standards of foreign countries,important for the industry of the country.
  Permanently  Standardization
and technicalinformation
department Fulfilment of the
fund
 6.2  Full providence of the inquiry point with
necessary technical and office equipment  2000  Standardization
and technicalinformationdepartment Improvement of
work quality ofthe center
 7  Informational propaganda activity    
 7.1  Carrying out of seminars on certification
and standardization issues in compliancewith the principals of Agreement ontechnical barriers to trade for specialists
from enterprises, firms, institutions,
organizations responsible for certificationand researching laboratories  2000-2002  Standardization
and technicalinformationdepartment,
certification and
accreditationdepartment,preparationservice Improvement of
qualification ofthe specialists
 7.2  Publication of materials on the
implementation of the Agreement on
technical barriers to trade
  Permanently  Departments of
Azerbaijan State
Standardization
Agency Knowledge of
the society on
the work status
 
Question 66
Please describe the current inspection process for imported goods?  Does it differ from the
inspection process for domestically-produced goods?
 Answer:
 Description of inspection process of cargo with plant, plants origin and quarantine organisms
by specialists from Plant Protection and Quarantine Department:
 Imported to the country:
- identification of accompanying documentation for conformity (quarantine permission
for importation, phytosanitary certificate);
- recognition process of certificates issued in countries parties of mutual agreement
with Azerbaijan on certification and accreditation;
- goods without certificate and not complying to quarantine requirements are returned
back;WT/ACC/AZE/5
Page 43
- in case if quarantine organism is found in involved vehicle or products, fumigation is
implemented, if not possible, the object is returned back or destroyed by consent;
- absence of quarantine organisms in rendered harmless cargo, samples are being taken
for laboratory expertise;
- quarantine inspection and laboratory expertise of samples by picking any are carried
out while transportation, storage and realization.
Goods produced in Azerbaijan and exported outside:
- quarantine requirements and certification are applied;
- control over goods during vegetation or in production process is carried out relatively
to effective normative documents of Azerbaijan;
- measures taken to prevent production and realization of products not complying to
quarantine requirements.  Goods imported from countries with quarantine organisms
not registered in Azerbaijan are under precise quarantine control.
 Goods brought upon request of the customers go through:
- Identification of imported goods for their compliance with the observation
documentation;
- Recognition process of certificates issued in countries parties of mutual agreement
with Azerbaijan on certification and accreditation is being carried out;
- Certification of goods that are not certified yet;
- Keeping control by kicking any while transportation, preservation and realization.
Followings are used on goods produced in Azerbaijan:
- Implementation of mandatory certification related to security measures;
- Inspection control over certified indications within the identified period of time;
- Control over quality of goods with respect to the annual plan is carried out in
compliance with the requirements reflected in the current normative documents of the
Republic of Azerbaijan.
- Implementation of measures to prevent production and realization of goods not
complying with the identified requirements.
Importation of goods to Azerbaijan is carried out upon Article 14 of the Law of Azerbaijan
"On Foodstuff".  Foodstuff registered in state hygiene register, submitted for certification or once with
the recognized certificates may be imported to Azerbaijan.  Foodstuff without relative certificates
granted in accordance with the legislation of Azerbaijan are not allowed to be imported to the customs
territory of Azerbaijan.
Quality and security signs of foodstuff should be included into the agreement (contract)
concluded between consumer and seller.
Compliance of imported foodstuff to Azerbaijan with quality and security signs shown in the
agreement and accompanying documents is one of the major conditions of bringing it to the market.
Question 67
Has the Azerbaijan established an enquiry point with respect to SPS and TBT measures, as
required by the Agreements?WT/ACC/AZE/5
Page 44
 Answer:
 An enquiry point with respect to TBT measures as required by the Agreement is established at
the "Azerdovletstandart".  We are in cont act with other countries through Internet.
 Concerning SPS measures, in accordance with Article 7 of the Law of Azerbaijan "On
foodstuff" all foodstuffs imported to Azerbaijan are check on their chemical contents, biological,
toxicology, and radiology signs by expertise and these products are registered in the state register andall information can be obtained from Ministry of Health.
 Moreover, citizens of Azerbaijan can in accordance with Article 6 of the Law of Azerbaijan
"On Sanitary-epidemiology safety" obtain clear information on level of diseases, epidemiological
condition and radiation, condition of environment and their impact on human's live, carried hygienic
expertise, results of other special expertise, decisions made by government high rank government
authorities that could lead a danger for human's live and environment safety free of charge.
Question 68
Has Azerbaijan established a publication to publicly announce changes or new laws?
 Answer:
In accordance with the active legislation of the Republic of Azerbaijan, Laws of Azerbaijan,
Decrees and Resolutions of the President of Azerbaijan are published in the official mass media like
“Azerbaijan” newspaper and “Collection of the legislation of the Republic of Azerbaijan”.
Decision of Milli Mejlis of Azerbaijan are published in "Azerbaijan" newspaper and
"Information of the Milli Mejlis" Collection.
Resolutions of the Cabinet of Ministers are published in the official publishing houses like
“Collection of the legislation of the Republic of Azerbaijan” and “Republic” newspaper also by other
publishing houses when immediate and wide broadcast of the information is necessary.
Normative-legal acts of the central executive authorities are being published in the “Bulletin
of normative-legal acts of the executive authorities of the Republic of Azerbaijan”, which is the
official publishing house of the Ministry of Justice.
Relative executive authorities and Milli Mejlis of Azerbaijan can officially publish their
adopted normative-legal acts in the way provided by the legislation of Azerbaijan.
 Normative legal acts of relative executive authorities or other bodies are published by them in
a volume necessary for wide acquaintance of by citizens.
 Normative legal acts can also be published by any publishing houses or broadcasted by mass
media.
Question 69
Please provide documentation on the certificate of conformity?  What government ministry is
responsible for this and how is this obtained?WT/ACC/AZE/5
Page 45
 Answer:
Azerbaijan State Standardization and Metrology Center (Azdovletstandard) bears the
responsibility of centralization of the certification and accreditation activities in Azerbaijan;
Within the scope of determined responsibility Azdovletstandard prepares managerial
documentation in certification and accreditation spheres basing on international norms, standards and
rules and submits them upon the request of the customer.
Managerial documents in certification and accreditation spheres exist in Azerbaijan (at
present, works on re-review and publication of the managerial documentation are being carried out).
Question 70
Does Azerbaijan base the standards and technical regulations it develops on performance
characteristics rather than design or descriptive characteristics?
 Answer:
Azerbaijan gives the advantage to the descriptive characteristics of the standards and
technical regulations it performs.  All prepared standards and technical regulations are being
developed in accordance with the requirements of standards of the State System of Azerbaijan.
Design issues are preferred depending on the financial status of the producer.
Question 71
Please report on steps Azerbaijan has taken, or  is taking, to review existing technical
regulations and mandatory certification requirements with a view to removing unnecessary
obstacles to trade.
 Answer:
In order to remove unnecessary obstacles to trade in Azerbaijan, Azdovletstandard signs
bilateral agreements with other countries.  In accordance with these agreements, countries can usestandards, norms and regulations, recognize results of trials and certificates issued by accredited
laboratories and centers of each other, bear the same policy in the sphere of standardization,
metrology and certification.
Question 72
Is Azerbaijan a member of the Codex Alimentarius Commission (CODEX), the International
Plant Protection Convention (IPPC), or the Offi ce of International Epizootic (OIE) – these are
the three international sta ndardizing bodies identified in the SPS Agreement.
 Answer:
 Azerbaijan is not a member of the Codex Alimentarius Commission (CODEX), is a member
to International Plant Protection Convention (IPPC) since year 2000, and the Office of InternationalEpizootic (OIE) since 1995.WT/ACC/AZE/5
Page 46
Question 73
Please describe whether and how GOSSTANDART fits into Azerbaijan's government structure,
e.g., does GOSSTANDART report to a Ministry, or is it an independent agency or private
body?  Was there some reason why this office was not included in the list of Government entities
responsible for making and implementing policies affecting foreign trade found in
WT/ACC/AZE/2?
 Answer:
Azerbaijan State Standardization and Metrolo gy Center (Azdovletstandard) is appointed by
the government and bears responsibilities of a government body in the sphere of standardization.
Azdovletstandard submits an annual report to the government.  Azdovletstandard is an organization
totally independent from the customer and producer.
 Due to certain technical problems Azdovletstandard was not included to the list of enterprises
shown in the WT/ACC/AZE/2.
Question 74
If possible, please give some indication of (a) the total number of Azerbaijan's standards, (b)
how many are harmonized with international standards and how many are distinctly national
standards, and (c) how many are mandatory standards
 Answer:
The fund of Azdovletstandard includes more than 20 thousands of standards, 700 of which are
national standards.
Fund is based on the intergovernmental standards (GOST) used by the CIS countries which
are being intensively worked out in accordance with requirements of ISO and IEC.  At present
Turkish and ISO standards are being added to the fund.
Standards used in Azerbaijan are mandatory concerning ecological and security requirements.
Standards are being prepared in accordance with the State Standardization System.  Mandatory as
well as recommendatory requirements exist in standards.
Question 75
Does Azerbaijan recognize international sanitary  and phytosanitary standards?  If so, how is
this demonstrated in the treatment of import s?  Does Azerbaijan reference international
standards in the preparation of regulations?
 Answer:
 Azerbaijan had recognized international standards.  Quarantine expertise of quarantine objects
wjile their importation to Azerbaijan is carried out  in accordance with mutual agreements signed with
countries and provisions of Conventions.  Agreements are applied in accordance with all international
norms, standards and rules provided by FAO.  Rules on plants protection and in quarantine sphere are
worked out in compliance with all documentations mentioned above.WT/ACC/AZE/5
Page 47
Question 76
Will any additional legislation Azerbaijan's contemplates for implementation of the TBT
Agreement encourage the adoption of internatio nal standards?  Will international guides and
recommendations be considered for use as a basis for regulations when appropriate?
 Answer:
 Since Azerbaijan intends to implement the TBT Agreement, it created good conditions for
adoption of these international standards and can use guides and recommendations when appropriate.
These issues are reflected in the Presidential Decree No. 26 by 22 November 1998 “On rules on
recognition and implementation of international (regional) and interstates standards, norms,
regulations and recommendations in the territory of the Republic of Azerbaijan” and in the Law "On
Standardization".
Question 77
Does Azerbaijan currently recognize technical regulations or conformity assessment procedures
of any other countries as equivalent?  Does Azerbaijan recognize conformity assessment
procedures carried out by bodies located in other countries provided they meet the same
criteria as domestic bodies?
 Answer:
Azerbaijan does carry out recognition of issues related to certification and accreditation in
accordance with bilateral Agreements on certification and accreditation signed by Azerbaijan
considering that certification principles are same for all countries.
Question 78
Has Azerbaijan concluded any bilateral or multilateral agreements in any standards-related
areas? Is Azerbaijan a signatory to any mutual recognition agreements/arrangements ofconformity assessment procedures?
 Answer:
Azerbaijan has concluded bilateral Agreements with CIS countries, also Turkey and Bulgaria
on standardization, metrology and certification and accepts certificates granted for goods in these
countries.
At present bilateral Agreement drafts with the Islamic Republic of Iran, Latvia, Lithuania,
Estonia and Slovakia are in the preparation process.
Question 79
 One fundamental obligation of the TBT Agreement is the assurance of non-discrimination and
national treatment for imported products.
Is there any existing legislation or does Azerbaijan plan to develop any legislation ensuring
non-discriminatory treatment for imported products?WT/ACC/AZE/5
Page 48
 Answer:
 The legislation system of Azerbaijan does provide the right equivalence between foreign
exporters, local producers and their goods and national regime in its transparent form.
 (e) State-trading practices
 Question 80
WT/ACC/AZE/2 states, “There are no measures th at would grant exclusivity to one company or
marketing enterprise in foreign trade.”  It also  states that nearly half of Azerbaijan’s GDP is
generated by the state-owned sector.
Are there any production monopolies sanctioned by the government of Azerbaijan?
Please list the major state owned enterprises, es pecially those in the energy production sector.
 Answer:
 Since privatization of enterprises in energy sector has not started yet, all enterprises are state-
owned or state established joint enterprises.  In accordance with Second State Privatization Program,the privatization is carried on by following steps.
 State-owned enterprises in energy sector:
- enterprises engaged in extraction of oil and gas, their transportation, processing and
sale (except retail sale);
- "Azerenergy", joint stock company and its divisions;
- electric energy production, transportation and provision, production of heating energy
- "Azerigas", joint stock company with its divisions;
- Transportation of natural gas by pipelines and its provision to people.
Question 81
Please describe the trade activities of Azerbaijan’s remaining state-owned enterprises.
 Answer:
 Considering that state-owned enterprises bear same legal status non-governmental
organization, rules and laws of Azerbaijan, also Law "On entrepreneurship activity" and Constitution
of Azerbaijan have equal concern to both of these type of enterprises.
Question 82
Please indicate list any enterprises, private or do mestic, that import or export on behalf of the
government or engage in stock-bui lding from international trade.
Please refer to the informal indicative list of state trading enterprises contained in WTO
Document G/STR/4 and indicate if any enterprise in Azerbaijan is involved in similar activities.
 Answer:
 Please see combined answer to all above questions in State Trading Practices sub-division.WT/ACC/AZE/5
Page 49
 Azerbaijan confirms that there is no state trading company in spheres mentioned in Article
XVII of GATT and Article VIII of GATS as well as no state trading company working in sectors
mentioned in G/STR/4.
 Despite that half of Gross Domestic Product is provided by state-owned enterprises, they
don't cover spheres under G/STR/4 requirements.
 (l) Government procurement practices, including general legal regime and procedures for
tendering, dealing with tenders and award of contracts
Question 83
Does Azerbaijan discriminate in favour of domestic production in its government procurement?
 Answer:
The buyer can make preferential changes in favor of works of local executives, tenders on
domestically produced goods or domestic services while evaluation and comparison of tender bids in
accordance with sub-division 32.4.4. of Regulation "On procurement of goods (works and services)budgetary financed enterprises " provided that appropriate decision is approved by the State agency.
Question 84
Will Azerbaijan join the Agreement on Govern ment Procurement in the context of its WTO
Accession?
 Answer:
 Azerbaijan is now analyzing the possibility of joining the Government Procurement
Agreement.
 At present, in Azerbaijan's transition period to the market economy, works on formation of
legal-normative base for the establishment of institutional base for Azerbaijan State Procurements and
preparation of relative offers in terms of application of structural changes in different sectors uponadvises of international financial organizations, are in the process.
 4. Policies affecting foreign trade in agricultural products
 (d) Export credits, export credit gu arantees or insurance programmes
 Question 85
We note that there are currently no export subs idy measures in place for agricultural products.
Can Azerbaijan confirm that it will commit to binding export subsidies at 0 in its agricultural
country schedule?
 Answer:
 The application of export subsidies on agricultural products in Azerbaijan is reflected in
Memorandum "On foreign trade regime of Azerbaijan" submitted to the WTO. The government ofAzerbaijan schedules discussion of future applicat ion of export subsidies on agricultural goods during
round negotiation to be held prior to its accession to WTO.WT/ACC/AZE/5
Page 50
 (e) Internal policies
Question 86
We suggest that Azerbaijan prepare informatio n according to the format in WT/ACC/4 and
circulate it to the Working Party for review.
 Answer:
 At present, Azerbaijan is working on "Domestic support and export subsidies in agriculture"
(WT/ACC/4) format.
 V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
 1. General
Question 87
Please complete the checklist found in WT/ACC/9, identifying specific provisions in
Azerbaijan’s regime for the protection of intellect ual property that address the provisions of the
WTO Agreement on TRIPS.
 Answer:
 Azerbaijan is now in process of preparation of WT/ACC/9.
 Question 88
Subsection 1(b) of section V of the Republic of Azerbaijan’s Foreign Trade Memorandum
identifies the agencies responsible for intellectual property policy.
Please describe in detail the structure and the specific responsibilities of the State Committee
for Science and Technology, Patent and Licence Department and the Agency for Copyright,
indicating the authority under which each organization acts and the way in which they
coordinate their activities with other agencies of the Government of The Republic of
Azerbaijan.
 Answer:
 In 1993 Patent and Licence Department was established under State Committee for Science
and Technology (SCST) in order to bear state policy on protection of industrial property (inventions,
useful models, industrial pattern, trademarks a nd geographical signs).  Patent Licence Department
(PLD) consists of three divisions.  Patent Licence Department bears responsibility of establishment ofnormative-legal base for protection of industrial property, issuance of documentation insuring
protection for industrial property, registration of agreements and licenses, publication of official
bulletin on industrial property etc.  This organization also makes contacts with similar organizations
in CIS and other foreign countries, prepares drafts of mutual agreements and submits them to the
Cabinet of Ministers for approval and represents Azerbaijan in international organizations withinframes of its responsibilities.  The main part of the Patent Licence Department (PLD) National Patent
Expertise Centre (NPEC) is formed since 1994 unde r the SCST. NPEC receives claim applications on
industrial objects, applies expertise and takes relative decisions concerning those objects.WT/ACC/AZE/5
Page 51
 Azerbaijan State Copyright Agency (ASCA) is the state central body regulating the state
policy on copyrights and cooperate rights.  The Agency is responsible primarily to the government of
Azerbaijan in its activity.
 Copyrights Agency carries out following responsibilities basing on legislation on copyrights
and authorities granted by the President:
- state regulation of the policy in copyright and cooperate rights;
- prepares proposals concerning improvement of the legislation on copyright and
cooperate rights;
- control over efficient compliance with the legislation on copyright and cooperate
rights;
- represent Azerbaijan in international organizations and bears cooperation in this
sphere;
- bears registration of scientific, literature and art works;
- bears registration of state registered organizations and controls over their activity in
terms of collective regulation of property rights;
- other responsibilities foreseen by the legislation.
The Copyright Agency cooperates with Ministry of Culture, Ministry of Justice, Ministry of
Foreign Affairs, Ministry of Internal Affairs, Customs Committee, State Committee for Science andTechnology, Ministry of Education, Academ y of Science and other government bodies.
The structure of the Agency consists of management and four departments.
 Question 89Subsection 1(d) states that the Law on Patents, adopted 25 July 1997, provides national
treatment for foreign nationals.
Please cite the provision and indicate if it pr ovides national treatment with respect to both
patents for inventions and for industrial designs.
 Answer:
 In accordance with Article 42 of the Law of Azerbaijan "On Patent" and Article 2 of Paris
Convention foreign natural persons and legal entities may enjoy equal rights with citizens ofAzerbaijan basing on mutual principles or international agreements that Azerbaijan is a part to.
 Question 90
No information is provided in subsection 1( d) regarding national treatment for forms of
intellectual property not covered by the Law on Patents.
Please describe the way national treatment is provided foreign nationals in connection with
copyright and related rights, trademarks, geogra phical indications, integrated circuit layout
designs, and undisclosed information, citing to the appropriate provisions of law.
 Answer:
 In accordance with Article 36 of the Law of Azerbaijan "On trademarks and geographical
signs" if not foreseen otherwise in by international agreements that Azerbaijan is a part to, concerning
trademarks and geographical signs foreign natural persons and legal entities enjoy quail rights withWT/ACC/AZE/5
Page 52
citizens of Azerbaijan.  Article 32 provides prohibition of following actions concerning use of
registered trademarks and geographical signs: actions resulting in the confusing of goods, rendered
service or entrepreneur activity with others; actions undermining the authority of the goods, rendered
service or entrepreneur activity at the undertaking of commercial activity; indices, the use of which
can mislead the public about characteristics, quality, and usability of goods at the undertaking of
commercial activity.  Article 33 of the same law stipulates that, commercial confidentiality of thetrademark owner, connected to the manufacturing of goods or rendering of services is kept during
consideration of disputes in court.
 Article 7 of the law of Azerbaijan "On unfair competition" provides prohibition of following
actions: illegal receiving, using and disclosing of the information on the scientific-technical, industrial
or commercial activity of the market subject, includ ing the commercial secrets; affecting by the illegal
methods the acceptance and implementation of the economical decisions of competitor with the
purpose of gaining unjustified advantage over him;  sale of commodity with the forced additional
assortment.
 In accordance with Article 2 of the law of Azerbaijan "On copyright and cooperate rights", if
other rules than those included in the original La w, are provided by the International Agreement, in
which Azerbaijan participates, then the rules of international agreement are applied.
 As it was noted, Azerbaijan is a member to World Geneva Convention "On copyright" and
Bern Convention "On protection of art and eternal works".
 Question 91
Please provide a schedule of fees for obtaining and maintaining patents for inventions and
industrial designs and for registering and re-registering trademarks and other charges referred
to in subsection 1(e).
 Answer:
 Fees are regulated in a following way by the "Rules on rates and payments of fees related to
protection of industrial property objects" approved by the Decision of the Cabinet of Ministers under
#37 by 6 March 2000.WT/ACC/AZE/5
Page 53
 Table for fees for patents granted for inventions, useful models and industrial patterns
Amount of duties
#Names of measures of legal importance and their terms of
paymentFor national legal
entities and
natural personsUS$ for foreign
legal entities and
natural persons
(its Manat
equivalent)
1. For issuance of claim application for invention, useful model and
industrial pattern (including initial expertise and expertise of the
claim application):
a) For one invention, one useful model and one industrial
pattern;
b) Additionally for each independent link of multiunit formula
with more than one link
c) Additionally, for each dependant link in multiunit formula
with more than five links
d) for each additional industrial pattern exceeding 10
e) for each pages of the claim application exceeding 30 pages
Document confirming the payment of fees (hereinafter referred to
as "payment document") should be enclosed to the claim
application15
20
50
50
75100
50
20
10
2
2. For initial request concerning claim application (one for priority)
Payment document should be submitted during first two months
after prior request by the payment document20 50
3. For application of changes and amendments to the claim
application passing a month after its issuance
Payment document should be submitted with the application for
making changes and amendments40 25
4. For extension of term for reply to the expertise inquiry:
for each month within no more than six months
Payment document should be submitted together with petition for
extension of term50 10
5. For publication of information about claim application before the
fixed date
Payment document should be submitted together with the petition
of a applicant40 45
6. For publication of information about claim application
Payment document should be submitted during 2 months from
the date the decision on fixed date publication is awarded40 30
7. For searching works of database on invention, useful models and
industrial pattern according to the petition
Payment document should be submitted together with petitionthe amount
shown in "1.a" +
tariffsWT/ACC/AZE/5
Page 54
Amount of duties
#Names of measures of legal importance and their terms of
paymentFor national legal
entities and
natural personsUS$ for foreign
legal entities and
natural persons
(its Manat
equivalent)
8. For expertise of the claim application on invention, useful model
and industrial pattern for its esse nce according to the application
a) for one invention
b) for one useful model
c) for one industrial pattern;
d) additionally for each independent link of multiunit formula
exceeding one link
e) additionally for each dependent link of multiunit formula
exceeding five links
f) for every additional industrial pattern exceeding 10 patterns
The payment document should be submitted together with the
petition.50
5050
50
5050150
100100
80
2020
9. For conversion of claim applica tion on invention to the claim
application on the useful model
Payment document should be submitted together with the
application.25 30
10. For conversion of claim application on the useful model to the
claim application on invention.
Payment document should be submitted together with the
application.20 50
11. Objection application to the Appeal Commission:
a) Against the decision on refusal of patent issuance to the
invention, useful model and industrial pattern.
b) Against published claim application on invention, useful
model and industrial pattern.
c) Against the patent issuance for an invention, useful models
and industrial pattern.
d) 
The payment document should be submitted together with an
objection application.20
50
30100
20
150
12. Restoration of passed time:
a) For application of a plaintiff to the Appeal Commission with
an objection for the refusal of patent issuance
b) For reply of a plaintiff to the Appeal Commission concerning
submitted objection application for published claimapplication
The payment document should be submitted together with the
petition.50
5050
60WT/ACC/AZE/5
Page 55
Amount of duties
#Names of measures of legal importance and their terms of
paymentFor national legal
entities and
natural personsUS$ for foreign
legal entities and
natural persons
(its Manat
equivalent)
13. Related the registration of industrial property objects, issuance of
patent and its publication:
a) for invention
b) for useful models
c) for industrial pattern;
d) for each page exceeding 30 of patent description together
with formula
The payment document should be submitted together with thepetition10
1010
50150
100100
2
14. For acquaintance with materials of claim application after its
publication.
Payment document should be submitted together with the
application.50 30
15. For issuance of patent duplicate
The payment document should be submitted together with the
petition.30 20
16. For application of changes to the granted patent
The payment document should be submitted together with the
petition.50 30
17. For registration of contracts on granting rights related to the
industrial property objects:
a) for each claim application separately on inventions, useful
models and industrial patterns
b) for each patent separately on invention, useful model and
industrial pattern,
c) for several claim applications on invention, useful model and
industrial pattern (for each claim application exceeding one)
d) for several patents on invention, useful model and industrial
pattern (for each patent exceeding one)
e) 
Payment document should be submitted together with the petition20
20
25
20100
150
60
100
18. For registration of contracts on granting of rights for use of
invention, useful models and industrial pattern objects:
a) for one claim application
b) for several claim applications
The payment document should be submitted together with the
petition.20
20100
80WT/ACC/AZE/5
Page 56
Amount of duties
#Names of measures of legal importance and their terms of
paymentFor national legal
entities and
natural personsUS$ for foreign
legal entities and
natural persons
(its Manat
equivalent)
19. Registration of the licensing contracts:
a) for every each patent granted separately for invention, useful
models and industrial pattern
b) for several patent granted separately for each invention,
useful models and industrial pattern (for each patent
designed for more than one)
The payment document should be submitted together with the
petition.25
25150
100
20. For application of changes to th e agreements on granting rights
for claim applications or patents or in the licensing contractsregistered according to the use of object.
The payment document should be submitted together with the
petition50 50
21. For consideration of the in itial user's claim according to
recognition of his rights.
The payment document should be submitted together with the
petition50 50
22. For remaining invention patent in force:
for third year
for forth yearfor fifth yearfor sixth year
for seventh year
for eighth yearfor ninth yearfor tenth yearfor eleventh yearfor twelfth year
for  thirteenth year
for fourteenth yearfor fifteenth yearfor sixteenth yearfor seventeenth yearfor eighteenth year
for nineteenth year
for twentieth year
The payment document should be submitted together with the
application15
151515
15
1515151515
15
1515151515
15
1540
6080
100
120
140160200260260
320
320380380440440
500
500WT/ACC/AZE/5
Page 57
Amount of duties
#Names of measures of legal importance and their terms of
paymentFor national legal
entities and
natural personsUS$ for foreign
legal entities and
natural persons
(its Manat
equivalent)
23. For remaining useful model patent in force
for third year
for fourth yearfor fifth yearfor sixth year
for seventh year
for eighth yearfor ninth yearfor tenth year
The payment document should be submitted together with the
application.15
151515
15
15151540
6080
100
120
140160200
24. For remaining industrial pattern patent in force
for third year
for fourth yearfor fifth yearfor sixth year
for seventh year
for eighth yearfor ninth yearfor tenth year
The payment document should be submitted together with the
application.15
151515
15
15151540
6080
100
120
140160200
25. For granting 6 months for the period of annual payment of the
patent during the year while it's in force.
The payment document should be submitted together with the
petition50 50
* The "tariff *" sign written in annex 1.1 shows that, tariffs of the international research center and fees
for sending of documents are paid directly by the applicant or the interested person.WT/ACC/AZE/5
Page 58
Amount of fees and duties to be for protection of  industrial property objects and way of payment
Annex 2
Amount of fees to be paid for trademarks and geographical signs
Amount of duties
#Names of measures of legal importance and their terms of
paymentFor national legal
entities and
natural personsUS$ for foreign
legal entities and
natural persons
(its Manat
equivalent)
1 For claim application on registration of trademark or
geographical sign (for no more than 3 classes of goods or
services renderedWhere:
a) for expertise of the claim application
b) for initial expertise of the claim application
Payment document should be submitted together with the petition
or within 2 months from the date of the submission of the petition50
50
50150
120
30
2 For every class of goods or services rendered exceeding 3
Payment document should be submitted together with the petition
or within 2 months from the date of the submission of the petition50 40
3 For extension of the period for 2 more months based on petition
of the applicant in accordance with Article 9.12 of the Law of
Azerbaijan "On Trademarks and geographical signs"
Payment document should be submitted together with the petition100 20
4 For the request of the priority concerning trademark
Payment document should be submitted together with the petition50 50
5 For application of amendments, corrections and changes to claim
application materials concerning trademarks and geographicalsigns
Payment document should be submitted together with the petition70 20
6 For extension of the reply period for expertise inquiries
Payment document should be submitted together with the petition100 25
7 For carrying out of expertise over claim application on trademark
and geographical sign in one month
Payment document should be submitted together with the petition50 100
8 For submission of the objection application to the Appeal
Commission in case of dissent with the decision of the expertise
concerning application for restoration of passed time
Payment document should be submitted together with the petition50 50WT/ACC/AZE/5
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9 Submission of the objection application to the Appeal
Commission:
a) against refusal by the initial expertise of consideration of the
claim application on trademark
b) against refusal by the initial expertise of the consideration of
the claim application on geographical sign
c) against decision made by the expertise on the claim
application on trademark
d) against decision made by the expertise on the claim
application on geographical sign
e) against registered trademark
f) against registered geographical sign
Payment document should be submitted together with the petition50
50
50
5050
5050
50
150
100200
150
10 For registration, publication of the information and issuance of
certificate:
a) for trademarks
b) for geographical signs
c) for collective sign
Payment document should be submitted together with the petition25
2525200
100250
11 For application of changes to the information concerning
registration contained in register and certificate
Payment document should be submitted together with the petition50 70
12 For issuance of duplicates of certificates on trademarks and
geographical signPayment document should be submitted together with the petition50 30
13 For withdraws out the register
Payment document should be submitted together with the petition50 30
14 For registration of agreements on granting rights related to
trademarks:
a) for one trademark upon claim application
b) for several trademarks upon claim application (for each
trademark exceeding one)
c) for one registered trademark
d) for several registered trademarks (for every trademark
exceeding one)
Payment document should be submitted together with the petition50
50
50
50100
60
150
100
15 Registration of licensing agreements:
a) for one trademark
b) for several trademarks (for every trademark exceeding one)
Payment document should be submitted together with the petition50
50200
150
16 For application of changes to licensing agreements, agreements
on granting rights related to trademarks
Payment document should be submitted together with the petition50 50WT/ACC/AZE/5
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17 For extension of the effectiveness period after its expiry:
a) for trademark
b) for geographical sign
c) for collective sign
Payment document should be submitted during last 2 month of
the effectiveness or together with the petition50
5050250
100350
18 Additional fee for 6 more months of extended period after expiry
of the date:
a) for trademark
b) for geographical sign
c) for collective sign
Payment document should be submitted together with the petition50
505050
5050
 
 Question 92
Subsection 1(e) refers to “payments and taxes relating to the copyrights from foreign persons”
being covered in Article 12 of the Law on Taxes on profit from private citizens and by the Law
on income taxes of enterprises and organizations.
Please describe in detail the taxes, to whom they apply, and the manner in which they are
collected, citing to the express provisions of law.
 Answer:
 Application of taxes on foreign persons for copyrights is regulated by Article 11 " Specific
character of authorship payments taxation" of the Law of Azerbaijan "On income tax application on
natural persons in the Republic of Azerbaijan". According to these rules if there are contracts forcreation, publishing, fulfilment or another use of pieces of science, literature and art, payments
effected under these contracts in advance or at the final settlement, are summed and distributed by
years of contract term for the aim of taxation.  In case of lacking of such contract, if the authorship
payment for creation or first publishing of such works exceeds 50 minimum salaries, the amount is
distributed for three years at payers' statement. The same order is to be applied for payments to
authors of inventions, inculcation and production samples for the first year of their use. Tax amount is
charged from payment source.
 Question 93
Please provide translated copies of the laws, d ecrees, regulations, and other legal acts relating to
intellectual property, including any draft legislation.  This should include, but not be limited to
the following:
- On Copyright and Related Rights
- On Trademarks and Geographical signs
- Law On Patents
- Law About Nature Protection and Nature UtilizationWT/ACC/AZE/5
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 Answer:
Copies of Laws "On Copyright and Related Rights", "On Trademarks and Geographical
sings" and Law "On Patents" are submitted to the Secretariat of the WTO.
Plant protection is provided by the general provisions of the Law of Azerbaijan "On Nature
Protection and Nature Utilization". Also please note that, the Law "On Selections" by
15 November 1996, provides rules and conditions of plant types.  We cannot provide copy of this Lawdue to its absence in English language.
 2. Substantive standards of protection, incl uding procedures for the acquisition and
maintenance of intellectual property rights
 (a) Copyright and related rights, including rights of performers, producers of phonograms
and broadcasting organizations
 Question 94
Subsection 2(a) specifies the provisions of Azerbaijan’s Law on Copyrights and Related Rights
that addresses protection for works of authors, performers’ rights, phonograph producers’
rights, and the rights of broadcast organization s, but it does not identify the specific rights
provided in each case, their term, and any limitations applied.
As the texts of the laws themselves are not yet available, please provide that information.
 Answer:
 According to the worsening principles of the protection period foreseen in by Law of
Azerbaijan "On Copyrights and cooperate rights" effective since 1996, works with old valid
protection terms are affected by the new terms of the protection period (livelong of the author + 50
years).
 If since the Law is effective, break in protection terms has taken the place, in another words if
terms of previous protection have expired, the protection terms are not extended and new terms are
not applied.
 Question 95
Article 18 of the Bern Convention, incorporat ed into the TRIPS Agreement by Article 9.1,
requires that copyright protection be restored to existing works that are still protected in their
country of origin.  Article 14 of the TRIPS Agreement requires that protection be restored to
phonogram producers for existing phonograms still protected in their country of origin and to
performances of performers still protected in their country of origin.
Please describe in detail the steps The Republic of Azerbaijan has taken to restore copyright
protection for existing works when it became a Member of the Berne Union and please describewhat steps are being taken to extend protection to existing rights in phonograms and
performances that are still protected in their country of origin.
 Answer:
 Azerbaijan applies national regime to aut hors of countries members of the Bern Union.WT/ACC/AZE/5
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 According to Article 18.2 of Bern Convention, if works of authors of Bern Union member
countries are public property, Azerbaijan do not protect these works.  Azerbaijan can conclude special
agreements with Bern Union member countries and can give specifics to protection principles in these
agreements.
 Cooperate rights definitions did not exist in  the legislation till 1996 and they were not
therefore protected.  Protection of cooperate rights started since 1996.  According to this, works onrestoration of cooperate rights according to terms foreseen in new legislation and their protection are
presently carried out.
 Question 96
Article 10 of the TRIPS Agreement requires that computer programs be protected under
copyright law as literary works under the Bern Convention.
Please confirm that The Republic of Azerbaijan’s Law on Copyright and Related Rights is
complies with that obligation.
 Answer:
 Protection of computer programs is provided in line with other copyright objects in by Article
6 the Law "On Copyright and cooperate rights".
Question 97
When does Azerbaijan intend to accede to the Geneva Phonograms Convention?
 Answer:
 The proposal on accession to the Geneva Phonograms Convention is submitted to the Cabinet
of Ministers of Azerbaijan.  The membership to the Geneva Convention was considered expedient by
the Ministry of Foreign Affairs.  Now Azerbaijan is going through accession procedures to the named
convention.
 Question 98
Azerbaijan indicates that legal protection of layo ut designs of integrated circuits is not currently
provided on the basis of Law in Azerbaijan
Please describe in detail the manner in which legal protection of layout designs of integrated
circuits is currently carried out and whether Azerbaijan plans to protect layout designs ofintegrated circuits on the basis of law.
 Answer:
 The draft Law of Azerbaijan "On protection of layout designs and integrated circuits" is being
worked out with assistance of experts of the World Intellectual Property Organization and will be
submitted to the Milli Mejlis in 2001.WT/ACC/AZE/5
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 (b) Trademarks, including service marks
 Question 99
Subsection 2(b) of Part V of The Republic of Azerbaijan’s Foreign Trade Memorandum states
that trademarks, including official marks a re protected under the Law on Trademarks and
Geographical Indications, but provides no further description.
Please describe in detail what marks can be registered in The Republic of Azerbaijan, what
rights are acquired with registration, the term of protection, whether and under what
circumstances registrations can be renewed, and any conditions that are imposed on the use of
trademarks, including licensing, by their owner.
 Answer:
The following can be registered as trademarks:
 Words, personal names, letters, figures, draw ing elements, goods shapes or packing, any
combination of colours or anything of the abov e (Law "On trademarks and geographical signs").
 The owner of the trademark is entitled to exclusively use it on the territory of the Azerbaijan
Republic for a period of its validity (Article 25).
 The registration of trademark or geographical sign is to be valid within 10 years since the date
of submittal of the exacting document to the corresponding executive authority. The period in
question can be extended for another 10 years on the basis of trademark owner’s application andprovided that state duty is paid. After the expiration of the registration validity period the owner of the
trademark or certificate of geographical sign can be provided with 6-month extension on condition of
the payment of additional state duty (Article 21).
The owner of the trademark can cede the right to use it on the basis of lease agreement and
the right for a trademark on the basis of agreement referring to all goods and services represented bythis trademark or part of them to another person. According to the licence agreement the quality of
goods and services of the licensee is not to be lower than the quality of the same of the licensor and
the licensor is to control the fulfilment of this condition.  The document about quality of goods and
services is to be enclosed to the licence agreement.  Licence agreement can be amended with consent
of the parties and provided that the state duty is paid.  Registered licence agreement can be cancelledin the order, established by the legislation.  It is not allowed to forcedly conclude a licence agreement
about trademark (Article 28).
Question 100
Are service marks protected under the Law on Tr ademarks and Geographical Indications?  If
not, what plans has The Republic of Azerbaijan to amend its law to provide protection forservice marks as required by Article 15.1 of the TRIPS Agreement.
 Answer:
 Service marks are protected by the Law of Azerbaijan "On Trademarks and geographical
signs" (see Article 1).WT/ACC/AZE/5
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Question 101
 Article 2.1 of the TRIPS Agreement requires that  Members comply with Articles 1 through 12,
and Article 19, of the Paris Convention, to which The Republic of Azerbaijan is a Party.  Article
6bis of the Paris Convention requires protection of well-known marks, even if they are not
registered in a country.
Please describe in detail the manner in which well-known trademarks are protected in
Azerbaijan, citing to the provisions of law au thorizing the various forms of protection and
indicating the agencies responsible for each kind of protection.
 Answer:
Well-known trademarks are ones described in Article 6 bis of Paris Convention.  Ever since
trademark is recognized as well-know relative executive bodies note following:
- Degree of popularity of good and services trademark stands for among the population
on the territory of the Azerbaijan Republic;
- Channels of distribution and commercial offers of goods and services trademark
relates to;
- Information of consumers about quality of  goods, using trademark both in Azerbaijan
and at the world market;
- Characteristic features of the trademark or features acquired during the process of its
use;
- Place of goods and services, using trademark that is occupied at the markets on the
territory of the Azerbaijan Republic and other states.
Should the use of the popular trademark registered in Azerbaijan by another person in
different kinds of goods and services results in the damage to the owner of this trademark, thecircumstance is to be considered the violation of  rights of the popular trademark owner (Article 7).
 Question 102
Please describe in detail any limitations or sp ecial requirements placed on the use of trademarks
in The Republic of Azerbaijan and provide the citation to the provision of law providing for
such limitation or special requirement.
 Answer:
 Appeal committee of the corresponding executive authority can cancel the registration in case
of non-use of the registered trademark or geographica l sign for 5 uninterrupted years since the date of
registration or for 5 years since the date of submittal the application for its utilization by the interested
person.  The interested person, owners of the trademark, its licensee, owner of the certificate of thegeographical sign are entitled to participate in the consideration of application.  During consideration
of the issue about cancellation of registration in connection with the non-use of the registered
trademark or geographical sign the arguments of th e trademark owner, showing that he did not use it
for reasons beyond his control can be taken into account.  During the use of collective trademark in
goods and services, not having common qualitative or other characteristics, the registration of the
mentioned trademark can be cancelled in court either fully or partially on the basis of application from
the interested legal or natural entity (Article30).WT/ACC/AZE/5
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 (c) Geographical indications, including appellations of origin
 Question 103
Subsection 2(c) of Part V of The Republic of Azerbaijan’s Foreign Trade Memorandum states
that geographical indications are protected under the Law on Trademarks and Geographical
Indications, but provides no further description.
Please describe in detail the protection prov ided geographical indications, how and by whom
such geographical indications are established, and how interested parties can protect rights in
geographical indications.
 Answer:
 Geographical sign is the sign, informing about goods origin in relation to the territory of the
state or zone, or area (geographical location), reflecting its peculiar qualities, popularity or other
characteristics.
 Along with the geographical name of the country, city, zone or territory, that represent
nominal geographical sign, graphical or visual reproduction of the geographical sign is also to be
protected.
Unless geographical sign reflects forged or misleading origin, it can be used as a
characteristic element of goods or service.
The use of geographical signs is specified for the entrepreneurs, servicing present territory.Official name, historical name or derivatives from them can be used as geographical signs.
In case of violation of these rules, the sign is not to be registered as a geographical sign.
The sign representing the name of the geographical object or reflecting this name, but not
referring to the geographical object in Azerbaijan is not to be registered as a geographical sign.
 Geographical sign, not protected in the country of origin is not to be registered in Azerbaijan
(Article 8).
 Natural persons and legal entities of Azerbaijan are entitled to claim for registration of their
geographical signs in other countries or international registration through by State Committee for
Technology and Science, after their registration in Azerbaijan.
Question 104
Does protection for geographical indications vary based on the product to which a geographical
indication applies and, if so, please describe those variations and indicate the products to which
each variation applies.
 Answer:
 Geographical sign makes equivalent on or more geographical regions where one or more
factories (of the entrepreneur) producing goods or services using of the geographical sign are located.
Any factory geographically located in the territory of the used geographical sign is entitled, with
complying to quality and characteristic requirements, use signs for goods or services originating fromWT/ACC/AZE/5
Page 66
this region. Geographical sign may be registered as collective sign.  Collective signs is entitled to be
used as differing sign for characteristics, quality, production methods, materials or geographical origin
of goods or services rendered by the factories that use these collective signs and are owned by the
owner of collective sing.  In this case, all members of the union should own factories located in these
geographical territories and should produce goods and render services determined by requirements of
the commission group of the local executive bodies.
 Following signs (works) cannot be registered as geographical signs:
- signs of wines and alcoholic drinks, not corresponding to their origin but equated to
it;
- signs that may mislead consumers concerning characteristics, quality or geographical
origin of goods or services rendered.   These kind of sings are ones that may mislead
consumers concerning characteristics, quality or any other specifics or create false
idea about geographical origin of goods or services rendered.
 (d) Industrial designs
Question 105
Subsection 2(d) of Part V of The Republic of Azerbaijan’s Foreign Trade Memorandum states
that protection for industrial designs if provided by The Republic of Azerbaijan’s Law on
Patents, but provides no further details.
Please describe in detail the requirements and procedure for obtaining rights in an industrial
design, the rights acquired, any limitations on th ose rights and the term of protection provided.
 Answer:
 Industrial patterns are those artistic-constructive solutions determining the appearance of the
information.
 Industrial pattern might consist of picture, model, or their association.
 If the whole of features causing aesthetic and ergonomic peculiarities of industrial pattern
(shape, configuration, ornament or association of colours) is unknown from information acceptable to
everybody in the world till its primacy date, the industrial pattern is considered to be new.  Documents
on claim on industrial samples in Azerbaijan given by other legal entities and natural persons andpublished in the official bulletin of the relative executive body are also related to the whole of existing
information.
 If the information concerning the context of the industrial pattern is revealed by the author,
plaintiff or any other person obtaining the information directly or indirectly within 6 months till the
day of presentation of documents of claim on industr ial pattern to the appropriate executive body, this
does not damage the innovation of the object specified in the document of claim. Author or plaintiff
should undertake the proof of the fact of reveal.
 Industrial pattern, important features of which give creative character to its aesthetic
peculiarities is considered to be originals.
 Industrial pattern, which is overproduced for several times, is considered to be applicable in
the industry.WT/ACC/AZE/5
Page 67
 Following objects are not considered to be industrial patterns:
- solutions conditioning only technical functions of the information;
- architectural objects (expect small architectural shapes);
- industrial, hydro-technical and other sanitary facilities;
- printing goods;
- objects with unstable shape made from liquid, gas, powder and alike substances.
 The volume of legal protection granted to industr ial patterns is identified according to the
whole of important features specified in the photog raphs of the information (model, drawing).  The
term of validity of patent granted for industrial pattern is 10 years.
 The permanent right for industrial pattern belongs to the owner of the patent by infringing
rights of other patent owners.
 Claim document on industrial pattern has concern only to one industrial pattern.
 If several items structure the united artistic-constructive form, they are considered to be one
industrial pattern.
 If several industrial patterns belong to one class of industrial pattern classifications, they are
considered to be one industrial pattern.
 Appropriate executive body publishes the information on claim document no later than 6
months after the date of presentation of claim application on this industrial pattern in its officialbulletin.  According to application of the plaintiff,  considering all fees paid, information concerning
claim document can be published sooner than the date shown above.
 Appropriate executive body grants patent to the applicant, after the expiry of terms for
presentation of complaints concerning published claim application or within 2 months after the date of
decision taken by the Appeal Commission concerning issuance of the patent, provide that all feesrelated registration of industrial pattern, issuance of the patent and its registration are paid.
 (e) Patents
 Question 106
Subsection 2(e) of Part V of The Republic of Azerbaijan’s Foreign Trade Memorandum states
that protection for inventions and utility models is provided by The Republic of Azerbaijan’sLaw on Patents, but gives no further description.
Please describe in detail the requirements and procedure for obtaining ri ghts in an invention,
the rights acquired, any limitations on those rights and the term of protection provided.
Answer:
Following objects might be considered inventions:
- structure;
- way;
- substance;
- stamp of microorganisms;
- crops of plant and animal cells;WT/ACC/AZE/5
Page 68
- application of structure, way, substance, micro-organism stamp known before with a
new purpose.
Object of invention that is new, and is in the level of invention and might be applied in
industry is given a legal protection.
If the invention does not repeat one part of the existing whole of information, it is considered
new.  Information known to everybody in the world till the day of issue of documents of claim oninvention is referred to the whole of existing  information.  Documents of claim on invention
published in the official bulletin of the body of appropriate executive power are also included to the
whole of existing information.
Information above is not applied to invention manifested only in their application of the
innovation, only in the case, if the application does not arise from existing information.
If the information concerning the contents of the invention is revealed by the author, plaintiff
or any person obtaining the information from them di rectly or indirectly within 12 months after the
day of presentation of document of claim to the appropriate executive body, this does not damage the
innovation of the object specified in the claim application.  Author or plaintiff undertakes the proof of
the fact of revealing.
If the invention does not arise openly from existing information for the specialist working in
this sphere it is considered to be invention level.
If the object of the invention might be prepared or used in any sphere of industry or economy,
in this case the invention considered to be applicable in the industry or economy.
Following objects are not considered to be inventions:
- scientific theories;
- arithmetical methods;
- result of artistic constructor work (design);
- methods of organization and manageme nt of economy and mental activity;
- ways and methods of games;
- computer algorithms and programs;
- ways of presentation of information;
- conventional signs, tables and rules;
- projects of structures, buildings and locality and schemes of planning;
- kinds of plants and species of animals (except microbiological ways and goods produced by
this way);
- topology of integral microschemes;
- surgical and treatment of human and animal organisms, methods of diagnostic of illness.
The volume of legal protection granted with pate nt to inventions is established according to
their formula.  The term of validity of patent gran ted for inventions in Azerbaijan is established from
the date of presentation of claim application to appropriate executive body and lasts for 20 years
(provided payment of fees for every three years, starting after first three years).
Following cases are not considered violation of exclusive rights of patent owner:
- non-profit use of means containing patented object of industrial property;
- use of means containing patented objects of i ndustrial property for scientific, experimental or
research purposes, as well as for examinati on of patented objects of industrial property;WT/ACC/AZE/5
Page 69
- making up a prescription for single use according to doctor's prescription.
Use of patented object of industrial property giving equal rights to owners of transportation
means of Azerbaijan and belonging to legal entities and natural persons of foreign countries, and
delivered to the territory of Azerbaijan temporary or by accident for need of transportation means, in
design of those transportation means during their operation.
 Question 107
Article 27 of the TRIPS Agreement generally requires that patents be available in all fields of
technology but does identify certain permissible exceptions.
Are there any exceptions to patentability in the La w on Patents and, if so, please describe those
exceptions.
 Answer:
 Inventions, industrial patterns, which are against public interests, principles of humanism and
morals are not protected by patent.
 Objects, which are not inventions shown above, can be presented as exceptions to
patentability in the Law on Patent.
 Question 108
Article 31 of the TRIPS Agreement establishes conditions under which the grant of a
compulsory licence is permissible.
Does the patent law of The Republic of Azerbaijan permit compulsory licensing of patents and,
if so, please indicate with respect to each condition itemized in Article 31, how and under what
authority such condition is ensured.
 Answer:
 In case when patent owner or his successor does not use the object of industrial property
within the period of 3 years after the date of issue of the patent without any valid excuse and does not
carry out serious preparation to use or suspend the use more than 3 or refuse from issuing the licence
after termination of this period, any legal entity or natural person might appeal the Law Court with
claim on issue of compulsory licence is of non-exclusive nature.
 In case when the licensee does not use the compulsory licence within the period of 2 years
from the date of its issue, patent owner might app eal the Law Court for cancellation of the licence in
the way established by the legislation.  Relation between patent owner and the person obtained the
compulsory licence from the date of issue of compulsory licence are considered equal to the relations
between licenser and licensee established by the Law "On Patent".
 Patent owner might require other patent owner without violation of his rights to conclude
licence agreement if he can not use the object of industrial property. Disputes concerning them are
settled at the Court in the way established by the legislation.
 With the objectives of safeguarding the interests of national security body of the appropriate
executive power has the right of giving his consent on use of the object of industrial property without
the consent of patent owner.  In this case correspond ing compensation is paid to patent owner.  If theWT/ACC/AZE/5
Page 70
patent owner is not satisfied with the amount of compensation, he might appeal to Court in an order
stipulated by the legislation of Azerbaijan.
Question 109
In disputes involving a process patent, is the burden of proof regarding the actual process used
to produce the product that is the subject of the dispute shifted to the defendant in either or
both of the two conditions identified in Arti cle 34 of the TRIPS Agreement?  If so, please
describe in detail the conditions under which the burden of proof will be shifted and cite the
legal authority for the shift.
 Answer:
 Rights granted for patent of methods for obtaini ng product (information) has direct concern to
other products obtained by this method and if there is no proof of opposite, the new product is
considered to be obtained by the new method.
 (f) Plant variety protection
 Question 110
Subsection (f) states that plant variety protection is provided by the Law “About Nature
Protection and Nature Utilization.”
Please describe in detail the requirements and pr ocedure for obtaining rights in a plant variety,
the rights acquired, the limitations on those rights contained in the law and the term of
protection provided.
 Answer:
 As it is shown above protection of plant variety is provided by the general provision of the
Law "On Nature Protection and Nature Utilization".  The Law of Azerbaijan "On Selection
achievements" of 15 November 1996 determines rules and conditions of protection of plant varieties.
According to this law right for application for patent  is first of all granted to authors of selection
achievements or his legal successor.
 In case if the selection achievement created jointly, or applicants are legal successors of the
author then applications are presented by several persons and they are regulated by the agreement
concluded among them.
 Right of obtaining a patent for selection achi evement created by employee in connection with
fulfilment of official duties if there are no other terms between employer and employee, belongs to
employer.  In this case compensation of the author (authors) for the use of selection achievement
should be foreseen by the agreement.
 If there is no authorship agreement between employer and author concerning giving rights to
the employer or the employer infringes conditions of agreement, in this case rights for application for
patent stay with the author.
 The right for obtaining a patent can be granted any persons written in the application of the
author.  In this case the application of the author should be presented to the appropriate bodies before
the issuance of the patent is decided.WT/ACC/AZE/5
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 Legal entities and citizens of foreign countries have the right to apply for patent, if their
relative countries have international agreements with Azerbaijan on expertise and protection of
selection achievements.  They present application for every selection achievement separately.
 Application can be presented in country language of Azerbaijan or any other language.  If the
document is presented in another language, the translation of this document should be enclosed.
 Following documents should be presented for obtaining the patent:
- application for obtaining the patent for selection achievements;
- file with description and reflected elements of selection achievements;
- payment check of all relative fees.
Rules for collection of application documents and their consideration are regulated by the
approved instructions.
Authorize government bodies carry out necessary registration of patented selection
achievements in the state register.
Terms of validity of patent is fixed for 20 years since the date of registration of patented
selection achievement in the state register, and 25 years for grapes types, decoration plants, fruits and
forest trees and types of animals.
Term of validity of the patent can by extended for 10 more years by the authorized
government body.
During the temporary protection, selection achievements can be used only for science and
experience-experiments.
Legal entities and natural persons of Azerbaijan have the right to appeal to appropriate
government authorities of other countries for obtaining the patent for selection achievements.
Citizens applying for patent to other countries should inform appropriate bodies of Azerbaijan
government.
All expenses for obtaining the patent in other countries should be covered by the applicant.
Natural persons and legal entities of other countries have the right to apply to appropriate
government bodies of Azerbaijan for obtaining the patent.
The patenting of selection achievements in Azerbaijan applied for by the foreign legal entities
and natural persons is carried out according to national legislation.
 (g) Layout-designs of integrated circuits
 Question 111
Subsection (g) indicates that The Republic of Azerbaijan does not currently protect layout
designs for integrated circuits.
Please describe the plans for providing such protection, including identifying the agencies
responsible for preparing legislation, indicating the steps that have been taken and the timetable
for completion of the plans.WT/ACC/AZE/5
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 Answer:
 The draft Law of Azerbaijan "On Layout-designs of Integrated Circuits" is worked out and
will be submitted to the Milli Mejlis for consideration after the approval of the World Intellectual
Property Organization is received.
 (h) Requirements on undisclosed information, including trade secrets and test data
 Question 112
Subsection (h) states that Article 16 of the Law of the Republic of Azerbaijan On Antimonopoly
Activities prohibits use of test data or other commercial or financial secrets from being used
without the consent of the proprietor.
Please describe in detail how this protection is  provided, including the criteria used to determine
what is a commercial or financial secret, who is considered to be a proprietor, what court and
administrative procedures are available to enforce rights, and what remedies are available
against those who violate those rights.
 Answer:
 According to Article 39 of TRIPS, protection of disclosed information is provided in by
Article 7 of the Law of Azerbaijan "On Unfair competition". It is stipulated that illegal receiving,
using and disclosing of the information on the scientific-technical, industrial or commercial activity of
the market subject, including the commercial secrets are prohibited.
 According to Article 33 of the Law of Azerbaijan "On trademarks and geographical signs"
commercial confidentiality of the trademark owner, connected to the manufacturing of goods or
rendering of services is kept during consideration of disputes in court.
 According to Article 10, section 10.2 of Civil Procedural Code of Azerbaijan, disclosing of
state, specialty or commercial secrets, spreading out of personal and family secrets, excluding caseswhen rights of people under full age are observed, all case are considered openly.
 According Article 202, section 201.1 in case of collection of information including
commercial or bank secrets, stealing of these kinds of information with the aim of their illegal use or
spreading, procurement and threatening or other illegal actions - it is punished by payment of 100 to
500 times minimum wages of penalty or one year of  compulsory works or two years of imprisonment.
 According to Article 202.2 in cases of illegal use of information containing bank or
commercial secrets for mercenary or other ends or their disclosure and actions causing serious
damages - it is punished by payment of 500 to 1000 times minimum wages of penalty or two years of
compulsory works or imprisonment for the same period.
 Question 113
Article 39.3 of the TRIPS Agreement deals with test data that must be submitted to any
regulatory authorities in a country in order to  obtain marketing approval for a pharmaceutical
or agricultural chemical product.
Please identify what authorities in Azerbaijan are responsible for granting marketing approval
for pharmaceutical and agricultural chemical and indicate on what basis they make their
determinations.WT/ACC/AZE/5
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 Answer:
 See answers above.
 Question 114
Please explain whether a second application for marketing approval of a pharmaceutical or
agricultural chemical may rely on the data su bmitted by an earlier applicant if the second
applicant can demonstrate that the pharmaceutica l or agricultural chemical for which it seeks
approval is the bio-equivalent of the earlier approved product.
 Answer:
 See answers above.
 4. Enforcement
 Question 115
Articles 41.1 and 42 of TRIPS Agreement require that  procedures be available for the effective
enforcement of the intellectual proper ty rights covered by the Agreement.
Please describe the structure of the judicial and administrative1 procedures in Azerbaijan in
which parties can enforce their intellectual prop erty rights, at local, provincial and national
levels.
 Answer:
 It is reflected in Article 36 of the Law of Azerbaijan "On trademarks and geographical signs"
and Article 42 of the Law "On Patent" that, foreign legal entities or natural persons may enjoy equal
rights with citizens of Azerbaijan in accordance with international agreements that Azerbaijan is
participating or mutual principles.
 According to Article 33 of the Law of Azerbaijan "On trademarks and geographical signs"
and Article 40 of the Law "On Patent" disputes arising concerning industrial property objects areconsidered by the court in an order established by legislation of Azerbaijan.
 According to legislation of Azerbaijan civil, criminal and administrational charges foreseen
for insuring of copyrights and cooperate rights concerning industrial property.
 Civil legal undertakings:
 Section 2 of the Civil Code reflects the civil rights and responsibilities, and their protection.
 According to Article 17 of the Civil Code ("Protection of Civil Rights") all state
administrative bodies, local municipalities, political parties, social union, labour unions,
organizations, legal entities and natural persons are obliged to respect civil rights and assist in their
protection.
 Legal protection of civil rights1 is provided by the general courts according to their
responsibilities foreseen in by Civil Code and economic courts.
                                                     
1These questions apply to both judicial and administrative enforcement of intellectual property
rights because of Article 49 of the TRIPS Agreement.WT/ACC/AZE/5
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 Owners of copyright and cooperate rights may apply to courts for restoration of their
infringed rights.
 According to Article 18 of the Civil Code, protection of civil rights is provided in accordance
with legislation of Azerbaijan in a way not against public interests, principles of humanism and
morals.  Also according to Article 20 of the Civil Code, person has the right to protect his civil rights
in any way, which is not against ways prohibited by the legislation of Azerbaijan.
 Self-defending methods of civil rights should be balanced to civil rights infringements and
should not exceed actions necessary to stop the violation.
 According to legislation of Azerbaijan along with general means of civic-legal protection
(recognition of civil rights, prevention of violation acts and restoration of conditions before violation,
reimbursement of losses etc.- Article 18, 21 etc. of the Civil Code), according to Article 45 of the Law
of Azerbaijan "On trademarks and geographical signs" following measures can be applied according
to appeal of the plaintiff:
a) penalty on the profit, received by the infringe in the result of copyrights and
cooperate rights breaking, in place of compensation of losses. .
b) Payment of compensation in the amount of from 100 to 50 thousand minimal wages
in place of losses compensation or penalty on profit.
 Criminal Legal undertakings:
 Following responsibilities foreseen for violation of copyright and cooperate rights in
accordance with Article 165 of the Criminal Code:
 Article 165 - Violation of copyright and cooperate rights
 165.1. In cases of illegal use of copyright and cooperate rights objects, i.e., publication of
scientific, literature, art or other works on your name, or misappropriation of other's authorship, illegalrepublication of the work or spreading, also constrain to co-authorship, if serious material damage is
caused - it is punished by payment of 100 to 500 times amount of losses of penalty or 160 to 240
hours of compulsory works.
165.2. Same undertakings
165.2.1. In recurrence of the case;165.2.2 Planned actions by group of people and organized criminal groups - provided
payment of 500 to 1000 times minimum wages as penalty and imprisonment for up to 3 years.
Article 166.1. If serious damage is caused by the infringement of invention and patent rights
- is punished by payment of 100 to 500 times minimum wages of penalty or 160 to 240 hours
of compulsory works.
Article 166.2.2. If violation is caused by plan ned actions of group of people or organized
criminal groups - is punished by 500 to 1000 times wages of penalty and 3 years of
imprisonment.
Article 197.1.  In cases of occurrence of use of other's goods or service signs, use of name of
place of origin of goods or use of names of goods of the same type or in cases or seriousWT/ACC/AZE/5
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damages - it is punished by payment of 1000 to 5000 times minimum wages of penalty or one
year of compulsory works or one year of imprisonment.
Article 197.2.  In case of serious damages caused by similar goods - it is punished by two
years of compulsory works or three years of limitation of freedom or imprisonment for the
same period.
Article 202.1.  In case of collection of informat ion containing bank or commercial secrets,
their stealing with the aim of illegal use or sp reading, also procurement, threatening or other
kinds of illegal actions - it is punished by payment of 100 to 500 times minimum wages of
penalty or one year of compulsory works or three years of imprisonment.
Article 202.2.  In case of serious material damage caused by the illegal use or spreading of
information containing bank or commercial secrets for mercenary or other personal ends
without approval of the owner - it is punished by the payment of 500 to 1000 times minimum
wages of penalty or two years of compulsory works or imprisonment for the same period.
Administrative legal undertakings :
According to Administrative Infringement s Code of the Republic of Azerbaijan:
Article 17.  Legal entities, including foreign persons bear the responsibility for administrative
infringements determined by the Code.
Article 187:187.2.1 For illegal use of programs of mass medi a without permission or copying of these
programs without awareness of the owner with the aim of spreading, sale or for public show
- government officials are charged by 70 to 90 times minimum wages of penalty, legal
entities are charged by 250 to 350 times minimum wages.
Article 205.  For illegal use of other's goods or services signs, or use of names of origin of
other goods of same type, if the damage is minimal - natural persons are charged by 10 to 15
times minimum wages, government officials by 35 to 65 times minimum wages, legal entities
by 30 to 170 times minimum wages of penalties.
Article 223.  For illegal use or spreading of information containing commercial or bank
secrets without permission of the owner, if causes minimum losses - natural persons arecharged by 20 to 25 times minimum wages, government officials by 40 to 55 times minimum
wages, legal entities by 150 to 200 times minimum wages of penalties.
Note: Expression "if it causes minimum damage" in this Article means, amount equal to 7
thousand times minimum wage.
Article 364.1.  Cases on administrative infringements, excluding when they concern actions
leading to spreading of state, service, commercial and other secrets protected by the
legislation are considered openly by the court.
According to Article 17 of the Civil Code ("Protection of civil rights") administrative
protection of civic rights is carried out according to provisions foreseen by the legislation.  Appeal of
claim against decision can be presented to the court in the administrative order.WT/ACC/AZE/5
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Owners of copyright and cooperate rights, also authorized government bodies and
organizations providing collective regulation of these rights may demand prevention of actions
causing or aiming to cause infringement of copyri ght or cooperate rights (Article 44 of the Law "On
copyright and cooperate rights").
Nonetheless, the Code of Azerbaijan "On Administrative Infringements" effective of
1 September 2000, partially provides administrative charges for author-legal infringements.Concerning this, appropriate proposal related to amendments to this Code is sent to the Milli Mejlis:
"Article.  Illegal use of copyright and cooperate rights (use of rights without consent of the
owner).
Charge applied for illegal use of copyright and cooperate rights without consent of the owner-
Natural persons - in the amount of 15 to 25 times minimum wages, government officials - in
the amount of 70 to 90 minimum wages.
Legal entities - in the amount of 250 to 300 times minimum wages."Following are provisional measures established by the Civil Code of Azerbaijan effective
of 1 September 2000.
Article 158.  Measures satisfying claim application
158.1. Following actions can be undertaken in order to satisfy the claim application:
158.1.1. application of arrest on defendants' prope rty or property of the defendant remaining
in the disposition of others.
158.1.2. prohibition of certain actions to defendant
158.1.3. prohibition of actions subjects to disputes
158.1.4. suspension of procurement of property upon presented claim on release of property
of the arrest.
158.1.5. prevention of withdrawing of demands on the debtor disputed within law frames
upon execution document.
158.1.6. prevention of withdrawing of demand application presented by the plaintiff on
disputes concerning penalty payment to be carried without disputes.
158.2. Court may apply other measures foreseen by this Code in order to satisfy the claim
application.  Court may apply different types of resolution of the matter.
Procedures of restoration of infringed copyright and cooperate rights are carried out in the
following order foreseen by the legislation.  Owners of infringed copyright and cooperate rights have
the right to demand prevention of actions causing or aiming to cause violation of their rights.  Owners
of infringed copyright or cooperate rights may apply restoration of their rights through appropriategovernment bodies working in this sphere or organizations providing collective protection of this kind
of rights.WT/ACC/AZE/5
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Appropriate government bodies, working in copy right sphere, do not pay state fees while
presentation claim application concerning restorati on of copyright and cooperate rights (Article 46 of
the Law of Azerbaijan "On copyright and cooperate rights").
Legislation releases plaintiff from the state fees while appeal with claim document to court on
restoration copyright and cooperate rights (Article 3 of the Law "On State Fees").
According to Article 124.1 of the Civil-Procedural  Code of Azerbaijan all expenses bore by
court and amount of fees released from payment by plaintiff are charged within the country from the
defendant in the proportion to amount satisfying the dispute.
Procedures of restoration of copyright and cooperate rights shown above have concern to
participants of the international agreements that Azerbaijan is a part to.
According to Article 439 of Civil-Procedural Code of Azerbaijan, foreigners and non-citizens,
foreign legal entities may appeal to courts of Azer baijan for restoration of their disputed rights and
interest protected by the law and enjoy equal procedural rights and bear same responsibilities withlocal legal entities and natural persons.
Question 116
Please indicate the jurisdiction of each type of court or administrative body and explain the
interrelationships, if any, of the various types of courts and administrative bodies.  Cite the laws
or other authorities establishing the structure, including each type of court and administrative
body.
 Answer:
 See answer above.
Question 117
Please describe briefly the procedure that must be followed by a foreign party to initiate an
enforcement procedure in each of the courts and administrative bodies identified in response to
the previous question cite the legal authorities establishing those procedures.
 Answer:
 See answer above.
Question 118
Please identify any requirement that a foreign party must meet to initiate a proceeding in the
courts and administrative bodies identified in answer to question 25 that is not required of a
national or resident of The Republic of Azerbaijan and cite the legal authorities providing for
those differences.
 Answer:
 See answer above.WT/ACC/AZE/5
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 Question 119
Article 41.2 of the TRIPS Agreement addresses, am ong other things, the cost of judicial and
administrative enforcement proceedings.
Please describe any fees charged by judicial or  administrative officials for filing legal actions
involving intellectual property or for pursuin g such actions once initiated, cite the legal
authorities for such fees, and provide copies of the documents used to inform the public of suchfees.
 Answer:
 All disputes arising concerning objects of industrial property are considered in Appeal
Commission of State Committee for Science and Technology (SCST) in accordance with the Laws of
Azerbaijan "On Patent" and "On trademarks and ge ographical signs".  Claim against decision taken
by the Appeal Commission can be presented to Court within 3 months.  According to sections 11, 12
of Annex 1 and sections 8 and 9 of Annex 2 of Rules "On payment and amount of fees related toprotection of objects of industri al property" approved by the Resolution of Cabinet of Ministers
under#37 of 6 March 2000, fees to be paid while application against decision of Appeal Commission
are fixed at US$20 to US$200 rates.
 According to Article 110 of the Civil-Procedural Code of Azerbaijan, authors related to
copyrights; disputes on copyrights, invention useful models, industrial patterns, also disputes arisingfrom other types of intellectual property - plaintiffs are released from payment of state fees related
dispute consideration in court. In accordance with Article 46 of the Law of Azerbaijan "On copyright
and cooperate rights" effective by 8 October 1996, in case of writ for the protection of copyrights and
cooperate rights Copyright Agency doesn’t pay a state levy as a state body dealing with copyrights.
Also according to the Law "On State fees", authors are exempt from paying state fees whilesettlement of disputes arising from copyrights.
 According to Article 124.1 of the Civil-Procedural  Code of Azerbaijan all expenses bore by
court and amount of fees released from payment by plaintiff are charged within the country from the
defendant in the proportion to amount satisfying the dispute.
 Question 120
Article 48.2 permits WTO Members to exempt public authorities and officials from liability
from remedies for infringement of intellectual property rights only if the actions of those
officials were taken or intended in good faith in carrying out their responsibilities under the
law.
Please explain any exemption provided public authorities and officials under the laws of the
Republic of Azerbaijan from liability for abuse of enforcement procedures, describe the
circumstances in which such limitations would not apply, and cite the legal authorities.
 Answer:
 See answers above.
 Question 121
Subsection 4(b) of the Foreign Trade Memorandum indicates that provisional measures are not
available in Azerbaijan.WT/ACC/AZE/5
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Please describe the Republic of Azerbaijan’s plans for making the necessary changes to its laws
and practices in order to provide provisional measures required by the TRIPS Agreement.
 Answer:
 Provisional measures established by the Civil-Procedural Code of Azerbaijan effective by
1 September 2000 are as follows:
 Article 1, section 1.1 stipulates that, rules for court execution of its responsibilities while
consideration of civic and economic disputes in courts of Azerbaijan are determined by the
Law, this Code and also international agreements that Azerbaijan is a part to.
 Section 1.5.  If provisions of international agreements that Azerbaijan is participating differfrom provisions procedural legislation, provisi ons of international agreements are applied.
 Article 13, section 13.4 provides that, if there are no legal norms regulating legal disputes,
court appeals to other legal norms regulating similar disputes.
 Article 30.  If while collection of several related claims, some have concern general court and
other part has concern to economic court, all disputes are considered in general court.
 Article 34.  Local economic courts, disputes arising from international agreements areconsidered by economic courts.
 Article 157.  Bases for satisfaction of claim:
 157.1 The judge may undertake measures in order to satisfy claim of the plaintiff.
 157.2. Decision  on satisfaction of claim made by the judge in order to execute decision in
the future is temporary and does not solve the dispute ahead of time.
Article 158,158.1. Following actions can be undertaken in order to satisfy the claim
application:
158.1.1. Application of arrest on defendants' property or property of the defendant remaining
in the disposition of others; for execution of actions by turns see Articles 158.3, 158.3.2.,
158.5.1., 158.5.2.
Article 158. .  Measures satisfying claim application.
158.2. Following actions can be undertaken in order to satisfy the claim application;
158.1.7. Application of arrest on defendants' property or property of the defendant remaining
in the disposition of others
158.1.8.  Prohibition of certain actions to defendant
158.1.9. Prohibition of actions subjects to disputes to others
158.1.10. Suspension of procurement of property upon presented claim on release of property
of the arrest.WT/ACC/AZE/5
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158.1.11. Prevention of withdrawing of demands on the debtor disputed within law frames
upon execution document.
158.1.12. Prevention of withdrawing of demand application presented by the plaintiff on
disputes concerning penalty payment to be carried without disputes.
 158.3. Court may apply other measures foreseen by this Code in order to satisfy the claimapplication.  Court may apply different types of resolution of the matter.
 158.6.1 Plaintiff may within legal frames demand of the defendant of the reimbursement of
losses he bore while implementation of the decision taken concerning satisfaction of the
claim.
Article 163.  Presentation of complaint against decision taken concerning satisfaction of
claim.
163.1 It is possible to present complaint against decisions taken concerning satisfaction of
claim.
163.2 If the decision on satisfaction of claim is made without awareness of the plaintiff,
terms of period for presentation of complaint starts from the date when he found out about the
decision.
163.3 The presentation of the complaint against decision made concerning satisfaction of
claim does not stop the execution of the decision.
163.4 If the decision of satisfaction of the claim is to cancel the claim or change one claim
with another, the complaint of the decision does not stop the execution of the decision.
Article 164.  Reimbursement of losses bore by the defendant as a result of the execution of
the decision on satisfaction of the claim.
After decision on decline of claim has come into effect, defendant may claim for
reimbursement by the plaintiff of losses he bore as a result of measures carried out by the
court related to satisfaction of claim.
Article 439.2.  Foreign natural persons and legal entities have equal procedural rights with
citizens of Azerbaijan and bear same responsibilities.
Article 442.1. Procedural rights and scope of activities of foreign legal entities is determined
by the legislation of the country it is originating.
 Question 122
Subsection 4(c) states that the Republic of Azerbaijan has no provisions for border enforcement
against counterfeit trademarked goods or against pirated copyrighted works, and that
provisional measures are not applied.
Please describe the Republic of Azerbaijan’s plans for making the necessary changes to its laws
and practices in order to provide border measures as required by the TRIPS Agreement.WT/ACC/AZE/5
Page 81
 Answer:
 According to Article 34 of the Law of Azerbaijan "On trademarks and geographical signs"
during the import of goods in Azerbaijan, which have  illegal trademark or geographical sign on them,
excluding transit goods, the arrest is to be effected in legally applied order at the demand of the
prosecutor, court, State Customs Committee or interested party.  During the direct or indirect use of
false characteristics about the origin of goods or personality of the manufacturer the arrest is to beapplied on goods in the order, specified by the legislation of Azerbaijan.
 Should the goods cross the border of Azerbaijan with illegally applied trademarks of goods
owners or licensees the owners or licensees in question have the right to address customs authorities
with a grounded request to suspend the passing of these goods through the border, as well as get
information about the quantity of goods and name of the sender of them.
 If the owner of the sign or licensee does not submit a copy of the court resolution about the
arrest of goods or the document about the beginning of court case, a pawn for the coverage ofexpenses for their arrest, such goods can be kept for only 15 days.
 According to Article 26.3 of the Code On Admini strative Infringements, in cases of cross or
move in the customs territory without consent of the appropriate executive power, engagement in
production or other kinds of commercial activity, or other kinds of violation of territory regime under
customs control - the punishment is; natural persons are charged by 5 to 10 times minimum wages,legal entities are charged by 50 to 110 times minimum wages as penalty.
 Article 286 of the Code On Administrative Infringements stipulates that, should the goods not
aimed for production or other kinds of commercial activity cross the customs border of Azerbaijan -
goods or transportation means of primarily objects of administrative infringement are to be
confiscated or penalty paid by amount equal to 10 - 100 per cent of the their price.
Question 123
Please describe in detail the manner in which Azerbaijan plans to provide provisional measures
in accordance with the TRIPS Agreement.
 Answer:
 According to Article 19 of the Customs Code  of Azerbaijan "Embargo on import to the
Azerbaijan Republic and export from the Azerbaijan Republic of commodities and means of
transportation", import to the Azerbaijan Republic and export from the Azerbaijan Republic of certain
commodities and objects of intellectual property may be banned.  Forbidden commodities and means
of transportation shall be immediately taken outside the territory of the Azerbaijan Republic, or
returned to the territory of the Azerbaijan Republic, if said commodities and means of transportationare not subject to confiscation.
 Concerning this works on improvement of border measures are presently applied.
Question 124
Please describe in detail the authority of the Customs officials to prohibit importation of goods
violating intellectual property rights and indica te how right holders can obtain relief through
the exercise of that authority.WT/ACC/AZE/5
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 Answer:
 Customs authorities take appropriate measures when there is a corpus delicti in the violation
of the legislation on intellectual property.
 Question 125
Subsection 4(d) states that Article 140 of the Criminal Code of the Republic of Azerbaijan
provides criminal penalties for copyright infringement.
Are there criminal penalties for trademark counterfe iting as well and, if not, please describe the
Republic of Azerbaijan’s plans for making the necessary changes to its laws and practices in
order to provide criminal actions against trad emark counterfeiters, as required by the TRIPS
Agreement.
 Answer:
 See answers above.
 VI. TRADE-RELATED SERVICES REGIME
 2. Policies Affecting Trade in Services
 Question 126
Financial Services: Banking and other financial services.  The information provided by
Azerbaijan on its trade related services regime a nd its financial services sector was helpful.  We
have the following further questions and comments:
Are there any financial services as defined in pa ragraph 5 (a), (v) through (xvi) of the Annex on
Financial Services (the Annex) that are not currently provided by the private sector in
Azerbaijan or are not provided at all?
 Answer:
 Almost every shown financial service is presently offered by the special sector.  But if any of
these services does not exist, it is not because it is prohibited by the law, it is because there is no need
for that particular service.  So, the formation of the security market now impacts the absence of these
kinds of services. Moreover, operations with valuable  metals such as gold and silver acquire a special
licence.
Question 127
If some financial services do not exist in Azerb aijan, is it because they are not permitted by
prudential regulations currently in place?
 Answer:
 See answer above.WT/ACC/AZE/5
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Question 128
Are there any measures that limit, in any way, the ability of a non-resident financial services
supplier to establish a commercial presence in Azerbaijan as a directly owned branch, a
representative office, or a wholly-owned subsidiary, either through de novo investment or
through acquisition of existing enterprises to engage in the services covered by the Annex?
 Answer:
According to the Law of Azerbaijan "On Banks and banking activity in the Republic of
Azerbaijan" effective by 14 June 1996.
i. The National Bank determines the limit of foreign capital participation in the
Republic banking system. The National Bank terminates the issue of bank licenses to
credit organisations with participation of foreign capital and branches of foreign
banks at the achievement of the stated limit or the establishment of restrictions for
credit organisations of the Azerbaijan Republic in the corresponding state.
ii. The head or one of the deputies of the credit organisation with participation of foreign
capital or the branch of the foreign bank is to be the citizen of Azerbaijan Republic.
iii. If the foreign bank has got the permit in the country of its origin for obtaining
pecuniary deposits or other means from juridical and natural entities, requiring return,
bank licenses can be issued to its branches. In this case the foreign bank is toundertake a full responsibility on its branch debts.
iv. The foreign bank is bound to get the National bank licence to conduct the activity
through its branch. The licence issued by the National Bank prohibits the branch to
carry out bank operations, not specified by the licence, issued to the foreign bank in
the country of its origin.
v. The National Bank is entitled to fix additional requirements to credit organizations
with foreign investments and branches of foreign banks concerning the establishment
of obligatory norms, the order of reporting, composition of administration, executed
bank operations, as well as the minimum capital amount of newly founded credit
organizations with foreign investments and branches of foreign banks and the orderof the placement of capital abroad.
 There is only a one restriction for foreign investments to establish a bank in the Republic of
Azerbaijan or to establish an institution considered as a legal person by the legislation of the Republic
of Azerbaijan in the banking sector, which is a limitation for the foreign capital not to exceed a 30  per
cent rate of the total capital.  There are no other restrictions except mentioned.
Question 129
Are foreign owned financial institutions that are established in Azerbaijan able to operate on
the same terms and conditions as domestic institutions that are in like circumstances, including
regarding capital requirements and the ability to expand geographically through branch
offices?
 Answer:
See answer below.WT/ACC/AZE/5
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Question 130
Are there any measures that limit, in any way, the ability of a non-resident financial service
supplier to provide cross-border into the territory of Azerbaijan  (1) advisory and other
auxiliary services, and (2) the provision and tran sfer of financial information and financial data
processing (as defined by para. 5 (a) (xv) and (xvi) of the Annex on Financial Services?  If so,
please describe the measures that apply.
 Answer:
 No restrictions concerning this matter are considered by the law.
Question 131
Are there any limits on the consumption abr oad of financial services by residents of
Azerbaijan?  Please describe any measures that would limit in any way the ability of residents
to purchase other financial services in the terr itory of another party, including licenses required
to effect currency transactions.
 Answer:
 Legal entities-residents of Azerbaijan (excluding credit organizations) are to obtain licence
from National Bank in order to establish bank account outside Azerbaijan.
 Question 132
Part VII, 2 of Annex 7 contained useful information regarding the financial services sector, but
in some ways, it concentrated mostly on servic es that banks may provide.   Under investments,
for example, the role of banks was mentioned, but no mention was made of the role of securities
markets.
What types of securities/ financial instrument s/ assets are traded in Azerbaijan currently?
What types of firms/ legal entities are allowed to provide dealing and brokerage services forsuch assets in Azerbaijan?
 Answer:
Following securities are currently traded in Azerbaijan: corporate bonds, state short-term
bonds, state privatization vouchers, state privatization options, futures, shares and certificates of
deposit, promissory note.
Following securities are planed to be issued: storage certificates and cheques.
In order to bear professional activity in the security market of Azerbaijan, natural persons and
legal entities should obtain appropriate special permission (licence) from the SCS (State Committee
on Securities).
At present, in order to bear fund exchange activity, organizational–legal form of legal persons
should be a closed type of joint-stock company, and organizational–legal form of investment funds
should be an open type of joint-stock company.
There are no restrictions for organizational-legal form of legal persons bearing other kinds of
professional activities.WT/ACC/AZE/5
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Activities related to broking, procurement of privatization checks and to regulation of
securities can be carried out by both natural persons and legal entities, other kinds of professional
activities can be carried out by only legal persons.
Foreign investors can participate in the security market as an investor, professional participant
of the securities market, through the establishment of joint or whole foreign owned organizations or in
accordance with the agreement signed with the prof essional participant of the security market.
Question 133
What are state-shorts?  If this refers to the government securities market, please describe the
operation of this market.  Are there any re strictions on participation in the government
securities market by foreign-owned financial institutions?
 Answer:
 State short-term bonds - are securities insuring the rights of bonds owners to by the nominal
price of those bonds from the body issuing them after the certain period and are issued by the Ministryof Finance in order to pay current expenses of the state budget.
 State issues short-term bonds for not more than 1-year term by names and documented.
Owners of short-term bonds can be any legal entity or natural person residents or non-residents of
Azerbaijan.  All operations related to allocation of  short-term bonds also accounts related with them,
registration of payments of entrepreneurs are carried out by credit organizations.  In order to beengaged with these kinds of activities, credit orga nizations should obtain licence for engagement in
procurement of financial means from the State Committee on Securities and should conclude a
contract with Baku Fund Stock-Exchange Market for services to be rendered.  Credit organizations
may obtain bonds on its name and to its account or to investors account of his name and by his
arrangement.
 Allocation and turnover of bonds are carried out by sales through by Baku Fund Stock-
Exchange Market.  Keeping of bonds and registration of rights bonds owners is carried out by
depository of the BFSEM.  State Committee for Securities bears registration of issuance of state sort-
term bonds.  Information regarding state short-term  bonds is passed to participants and investors
through Baku State Stock-Exchange Market.
 These kinds of issues are regulated by Provision "About issuance, allocation and turnover of
state short-term bonds".
 3. Market Access and National Treatment
Question 134
Please confirm that there are no market acces s and national treatment limitations in the
securities sector.
 Answer:
All participants of the of the security market, including foreign investors should equally
follow legislation regulating security market.WT/ACC/AZE/5
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 VII. INSTITUTIONAL BASIS FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
 1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade in
services
Question 135
What is the current rate of duty charged on imports of civil aircraft and aircraft parts?
 Answer:
 Rates of duty charged on imports of civil aircraft and aircraft parts are at zero level at present.
 2. Economic Integration:  Customs Union and Free Trade Area Agreements
 Question 136WT/ACC/AZE/2 states that although Azerbaijan has signed preferential trading agreements
with seven states of the CIS - Georgia, Kazakhstan, Moldova, Russia, Turkmenistan,
Uzbekistan and Ukraine, the trade liberalizing provisions of these agreements have not takeneffect.
Is this still the case?  Does Azerbaijan have near term plans to establish duty-free trade with
any of its CIS trading partners?
 Answer:
 Azerbaijan has signed bilateral free trade agreements with 7 CIS countries (Russian
Federation (30/09/92), Uzbekistan (27/05/96), Uk raine (28/07/95), Georgia (10/06/96), Moldova
(26/05/95), Kazakhstan (10/06/97) and Turkmenistan (18/03/96)).  According to articles of these
agreements, states that signed the Agreement undertake a commitment not to apply duties, taxes and
charges that equally affect exports and imports between them.  At present custom duties are not
applied to imported goods only from 3 countries like Georgia, Kazakhstan and Ukraine.
 Azerbaijan joined the Agreement on the establishment of free trade zone within CIS on
15 April 994.  As the Agreement had not been impl emented, the CIS countries signed the Protocol on
making amendments and additions to the same Agreement on 2 April 1999.  At present the Protocol is
not effective yet.  The states that signed the Agreement undertake a commitment not to apply duties,
taxes and charges equivalently affecting exports and imports between them.
Question 137
Do any of these agreements have provisions for trade in services?  If so, please describe them.
 Answer:
Till very recent times, Azerbaijan didn't foresee any concessions regarding trade in services in
Agreements concluded "On Free Trade Zone".  According to Law effective by 24 March 2000 onapproval of Protocol "On making amendments and changes to the Agreement "On Free Trade Zone"
following changes regarding services were made to the Law:WT/ACC/AZE/5
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Article 17
1. Parties will mutually do their efforts to gradually remove obstacles regarding services
rendered at the territory covered by the Agreement.
2. Agreed parties should determine types of services to be covered by the agreement,
and determine prior services serving the turnover of goods prior in liberalization in
export import spheres.
3. Agreed Parties remain the rights concerning provision of services on bilateral and
multilateral bases.
According to the above mentioned Law changes are made to section 1 of Article 17 "after
words "Agreed Parties" it comes "will provide cond itions for liberalization of market of national
services and…".
Please note that, within carried economic reforms, according to Decree of the President of
Azerbaijan by 30 April 2001 Ministry of Commer ce, Ministry of State Property, Ministry of
Economy, Antimonopoly and entrepreneurship support Committee, Investments Agency are closed,
and new Ministry of Economic Development  wa s formed based on these government bodies. All
responsibilities of closed Ministries in terms of licence issuance etc., considering that there are no new
instructions provided, are carried in a way done so far.
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