Azerbaijan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in azerbaijan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Assessment of Current Buyer Behavior in Market

Electronic commerce is slowly increasing in Azerbaijan from a low base.  Domestic electronic payment systems such as GoldenPay and online authentication systems such as the “Asan Imza” electronic signature system have encouraged online sales.  Despite the availability of electronic payment and authentication systems, most Azerbaijanis prefer to make payments in cash.  E-commerce is otherwise only used for purchases made abroad.  For sales overseas, the AzExport.az online sales portal provides a database of goods produced in Azerbaijan available for buyers anywhere in the world to purchase online.  It offers secure payment options using major credit cards and global and local transport and logistics companies.  The site has also partnered with other large international sales portals to direct potential buyers to its database of products.

Local eCommerce Sales Rules & Regulations

Electronic commerce is regulated by the Republic of Azerbaijan’s Law on Electronic Commerce, issued in 2005.  The first electronic payment system was created in 2008.  No specific license is needed for businesses to engage in electronic commerce; however, they must be registered with the State Tax Service and possess a TIN (Tax Identification Number).  The Ministry of Economy oversees and regulates the electronic commerce in Azerbaijan. 

Typical issues businesses might face include the lack of reliable security mechanisms on local online platforms, intellectual property-related issues, personal data protection issues, and the small number of electronic commerce platforms.  Many shippers are reluctant to send goods without pre-payment as e-commerce is limited by a lack of clear and effective legislation.  To address some of these challenges, the government passed legislation in April 2017 to promote the use of non-cash transactions in an attempt to improve tax collection and promote transparent transactions.  These efforts are ongoing.

E-commerce is subject to relatively weak intellectual property rights enforcement, as with every sector in Azerbaijan.  Several multinational IT companies report widespread unlicensed software use in homes, offices, and government workspaces.  Some multinational IT companies have made progress engaging directly with government officials to highlight the security risks of unlicensed software.  The American Chamber of Commerce in Azerbaijan, which represents many of the largest local companies, took a pledge in May 2019 to respect and protect IPR rights and advocate for improved enforcement in Azerbaijan.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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