On 20 February 2020, the Management Board of the Central Bank of the Republic of Azerbaijan approved amendments to the “Regulations on currency operations of residents of the Republic of Azerbaijan in foreign currency, and non‐residents in national and foreign currencies” (the “Amendments”). According to this amendments, the foreign currency control regime was liberalized. Thus, under the Amendments, the previously prescribed 270 days for importing goods or obtaining services after advance payment to a foreign bank account has been increased to 2 years. In other words, an importer of goods or services into Azerbaijan is required to provide customs declaration of the imported goods/act of acceptance of the services to its bank within 2 years from the date of making advance payment for such goods and services.
The other amendment to the said Regulation removed the requirement on delivery of the relevant information to a currency control authority (i.e. the Central Bank) for goods and services not imported whose price falls below USD 10,000 (ten thousand) or an equivalent amount of other currency. It means that the local banks are not required to send information to the Central Bank about non-imported goods or services whose value have already been paid by their customers (i.e. importers of those goods and services).
It should also be stated that violation of the above mentioned rules of currency regime would trigger the commencement of administrative procedure against the importer and the Central Bank would impose sanctions on them.
The Amendments entered into force on 28 February 2020 after being registered by the Ministry of Justice.
This article was prepared as a general information by the attorneys of Baku Attorneys & Consultants (BAC), Azerbaijani law firm. BAC is a full service law firm based in Baku and it has a strong team of highly experienced attorneys and consultants, specialized in rendering various expert services to foreign and local clients in Azerbaijan. Please, feel free to reach us via www.batco.az.