Goods imported into Azerbaijan for processing and re-export are subject to normal duties and taxes at the time of importation. As soon as processing is completed and the goods are re-exported, a draw-back procedure is initiated to recover the taxes and duty paid. There is no formal procedure to submit an application. The State Customs Committee establishes the time for the processing and re-exporting of the goods, usually within two years. In addition, the State Customs Committee also might stipulate a minimum amount of finished product be held to ensure that the imported goods are utilized for their intended purpose.
Travelers can import personal items and valuables up to a certain amount without filling out a customs declaration. Travelers can import up to $10,000 or the equivalent in currency, 3 liters of alcohol, 600 cigarettes, and 20 grams of gold or jewelry without filing a declaration. For amounts larger than this (including up to $50,000 in currency), travelers should fill out a customs declaration. Medication for personal use can be brought into Azerbaijan without a declaration.
Provisions for importing goods and equipment are an integral part of production sharing agreements (PSAs) in the energy sector. Goods, tools, equipment, supplies, and services required to successfully carry out the PSA’s objectives are generally exempt from import duties and taxes. By extension, foreign firms registered to do business in Azerbaijan, who provide services for contractor parties or foreign sub-contractors participating in PSAs, may also be exempt from duties and VAT on imported goods and equipment. In all cases, the PSA’s specific terms will govern each individual situation.