Azerbaijan is set to expand the list of legal entities exempt from customs duties, a move aimed at fostering economic growth and supporting local production. This initiative was discussed during a recent session of the Milli Majlis (National Assembly) Committee on Economic Policy, Industry, and Entrepreneurship.
According to the Operative Information Center-OMM, the proposed amendments to the law "On Customs Tariffs" were reviewed during the committee meeting. The legislation outlines specific conditions for exemptions, particularly focusing on goods produced within the Alat Free Economic Zone (AFEZ).
Under the new provisions, goods produced or sufficiently processed by a legal entity within the Alat Free Economic Zone will be exempt from customs duties for 15 years from the date of the entity's establishment. This exemption applies provided that at least 50% of the locally produced goods are exported outside the country, and the goods are brought from the AFEZ into the main economy in accordance with procedures established by the relevant executive authority. The law is scheduled to come into effect on January 1 of next year.
The Alat Free Economic Zone, established by President Ilham Aliyev, serves as a strategic hub designed to attract foreign direct investment and boost Azerbaijan's non-oil sector. By offering preferential tax and customs regimes, the zone aims to integrate the country more deeply into global supply chains and enhance its export potential.
