Certificate of exemption from import-export taxes: points to consider when applying

In this brief article, I would like to touch upon the key points to consider when applying for a certificate of exemption from import-export taxes, as issued by the State Customs Committee of Azerbaijan Republic, in cases determined by international agreements to which Azerbaijan is a party.

Although the process might initially appear straightforward, knowing what challenges may arise in the subsequent stages after the application can make everything more efficient and quicker. As is well known, the issuance of the aforementioned certificate is crucial for companies participating in Production Sharing Agreements (PSA), as well as their contractors and subcontractors. Each stage of the process—from collecting and preparing the necessary documents for the application, submitting the electronic application, monitoring the subsequent stages, making required adjustments, and finally obtaining the certificate—is of great importance.

While the application is made electronically and there is a unified administrative regulation and guideline for the process, certain questions—particularly regarding the documents to be attached electronically—often arise after the application is submitted.

One of the most common points of concern or dispute relates to the main contract between the PSA-participating company (parent company) and its contractors or subcontractors, as well as any annexes to this contract. A lack of proper attention to this matter from the outset can lead to delays and misunderstandings in the process.

First and foremost, the contracts between the parent company and contractors or subcontractors must be drafted correctly. The rights and obligations of the parties must be clearly and accurately outlined, and any clauses concerning the transfer of rights and obligations should be detailed. In case of disputes or questions, the correct approach is to send an official explanatory request letter to the Legal Support Department of the State Customs Committee. Any interpretations regarding the contract or its annexes should only be considered in the legal context. Once an official response letter is received from the relevant department, the next appropriate steps can be taken.

Another key point to focus on is ensuring that the relevant protocol from the Production Sharing Agreement is correctly specified in all necessary documents. It is important to indicate the precise protocol to which the certificate pertains and to ensure that the relevant protocol is properly stamped.

Additionally, it is crucial to prepare an accurate list of goods to be imported under the contract. When filling out the required form, the name, size, and unit of measurement of the goods, along with their HS Code , must be accurately specified.

Note: At Unified Tax and Technology Businesses, our team is always ready to assist you in successfully carrying out this as we understand the complexities of the process. Our experienced team is here to guide and assist you at every step, ensuring a smooth and successful application.
Feel free to reach out to us for professional support in navigating the requirements for obtaining tax exemption certificates.

Narmin Mammadova
Head of Finance & Legal | Unified Tax & Technology Businesses
Mobile:+994 99761 00 35 | Email: [email protected]
Address:  Chinar Plaza, 152 H.Aliyev ave., 8th floor, Baku, Azerbaijan