Page 61 - Azerbaijan State University of Economics

Fakhri M. Mammadov: Azebaijan–WTO relations, problems and future perspectives

III. Besides, expert group offers to discuss need to approve such laws as "Certification of

products", "Protection of competition at the market of financial services".

Recommendations on Customs Tariffs

Tariff policy for period of entrance should have multiple functions:

 protecting for sectors vulnerable to import;

 stimulating in relation to domestic producers;

 fiscal (increase of revenue).

The basis for tariff proposals of Azerbaijan needs scientific reasoning. The basis of customs

duties (particularly for rural products) should base upon the following factors:

 social-economic situation in agriculture and agro-industrial sector;

 need in structure reconstruction;

 impact of customs tariff on production volume, loading of production capacities,

volume of investments, number of employees.

What should be taken into account under tariff policy?

 small territory of Azerbaijan, changes in consumption of which exert no impact on

global prices;

 level of customs taxation should be increased in parallel with increase of processing

degree (tariff escalation);

 level of duties for rural products must be over than those for industrial duties;

 complicated (multi-column) tariff per good provides better measurability in the customs

policy;

 active use of seasonal duties till harvesting allows to regulate saturation of home

market and protect vulnerable sectors;

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