TODAY.AZ / Business

Azerbaijan, Turkey ink memorandum on simplified customs corridor

15 October 2019 [14:58] - TODAY.AZ

By Azernews

By Leman Mammadova

Azerbaijan and Turkey have taken a significant step to deepen cooperation in the customs sphere.

The governments of Azerbaijan and Turkey signed a memorandum of understanding on a simplified customs corridor.

The document was signed by Safar Mehdiyev, Chairman of Azerbaijan State Customs Committee, and Ruhsar Pekcan, Turkey’s Trade Minister, at the third meeting of the Joint Committee on Customs Affairs in Ankara, on October 11.

The sides exchanged views on the prospects of cooperation between the customs authorities of Azerbaijan and Turkey.

Mehdiyev stressed the transport and logistics projects in the region in recent years, carried out on the initiative of Azerbaijan and Turkey as a vivid example of the high level of relations between the two countries.

He noted that reforms carried out in Azerbaijan aimed at preserving and strengthening economic security contributed to the dynamic and rapid development of customs authorities, adding that business environment has been improved and customs procedures have been simplified.

Pekcan, in turn, emphasized that the customs authorities play an important role in strengthening bilateral relations between the two countries.

In her words, it is planned to sign an agreement on preferential trade between the two countries on the sidelines of the summit of the Turkic Council to be held in Baku on October 14-15.

The parties agreed to complete the discussions on the technical specifications document on the agreement on the creation of a primary electronic information exchange system for transit transport by road and sign it.

In addition, the parties agreed to begin discussion of the agreement, which will provide an initial exchange of information to facilitate customs and border procedures under the Baku-Tbilisi-Kars project.

The next, fourth meeting of the Joint Committee will be held in 2020 in Baku.

In 2018, turnover between the two countries amounted to $3.4 billion. Azerbaijan and Turkey intend to further increase the trade turnover by more than $5 billion based on the existing potential.

The preferential trade agreement will provide for the introduction of a zero rate of customs duty on mutual deliveries of goods between Turkey and Azerbaijan. As many as 15 commodity items to which privileges and annual tariff quotas for these goods will be applied have been already identified. These are mainly agricultural products.

In October 2017, Turkey also exempted goods supplied from the Nakhchivan AR from duties. In total, the list includes 43 names of products (13 agricultural, 30 industrial goods).


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