Page 62 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 2, 2014, pp. 42-65

 high tariffs allow to back up level of profits raised by farmers.

II. The key goal in the customs policy is to secure home market and producer in regard to

long-term perspectives of national economic and foodstuff security.

To achieve the aforesaid goal it is offered to apply differential structureof import customs

duties as follows:

 mercantile goods, important for national production - 0%;

 non-perspective groups of goods - 5-10%;

 vulnerable mercantile groups - 15-20%;

 vulnerable mercantile groups - 100-200%.

The main criteria for classification of goods are as follows:

 priorities of development in economy and sectors;

 opportunity to produce goods due to nature-climate, technical-technological conditions;

 perspectives on export orientation of sectors;

 level of profits and poverty in some sectors.

The transition period for each good, for which reduction is envisaged, should vary from

3 up to 7 years.

III. Level of customs protection of Azerbaijani economy is comparatively low in

comparison with WTO's member-nations and it ensures opportunities for flexible policy during

negotiations. The main principle for negotiations on tariffs must be not cut of duties on goods

since as soon as Azerbaijan enters WTO but upon expiration of transition (implementation

period). The final level of connection may be lower than initial (by 3-5%) but only in the sectors

where reduction exerts no serious impact on domestic producers. The compromise on connected

tariffs is available in those goods, import of which is important for Azerbaijan.

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