President Ilham Aliyev has signed a law amending the Law on Customs Tariffs, which was adopted by the Milli Majlis (National Assembly) on July 10.
According to the Operative Information Center-OMM, the amendments provide significant customs duty exemptions for goods produced within the Alat Free Economic Zone (AFEZ). Specifically, goods manufactured or sufficiently processed by a legal entity within the AFEZ 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 originated goods are exported outside the territory of Azerbaijan when brought from the AFEZ into the country's main economy.
The law is scheduled to come into effect on January 1, 2027.
Furthermore, the head of state signed a decree regarding the application of the amended Law on Customs Tariffs and revisions to the decree dated July 4, 2013, on the implementation of the same law. Under the new decree, the Cabinet of Ministers is tasked with defining the nomenclature list of goods eligible for these exemptions and establishing the procedures for transferring these goods from the AFEZ to the main economy within a three-month period.
The Alat Free Economic Zone, established by President Ilham Aliyev, serves as a strategic hub designed to attract foreign direct investment, boost non-oil exports, and integrate Azerbaijan further into global supply chains. By offering preferential tax and customs regimes, the zone aims to stimulate industrial production and enhance the country's overall economic competitiveness.
