Customs clearance compensation costs will strengthen the export potential of SMBs.

Customs clearance compensation costs will strengthen the export potential of SMBs.

President of the Republic of Azerbaijan, Mr. Ilham Aliyev, has signed a Decree providing for additional measures to support the export of non-oil and non-gas products. The document establishes a new financial compensation instrument aimed at facilitating the access of local products to foreign markets, as a continuation of existing legal mechanisms related to the improvement of governance in the fields of micro, small and medium business development, investment promotion, and export support.

Aykhan Gadashov, Head of the “Azexport” portal, stated that the adopted Decree is of significant importance in terms of expanding the export opportunities of micro, small and medium businesses (SMBs) operating in the non-oil and non-gas sector and reducing the financial burden they face. According to him, the main objective is to better prepare SMBs for global competition, simplify export procedures, and increase the competitiveness of Azerbaijani products in foreign markets through state coverage of cross-border costs.

A. Gadashov noted that one of the most important innovations introduced by the Decree is the implementation of a mechanism for “compensation support for export clearance costs.” Under the new mechanism, micro, small and medium business owners will be able to receive compensation from the state budget for customs clearance fees paid when exporting Azerbaijani-origin non-oil and non-gas products. This approach will help optimize administrative costs arising in the export process and enable saved resources to be directed toward expanding production.

According to him, the document also includes an important safeguard mechanism aimed at protecting the economic interests of entrepreneurs. Thus, during the five-year period in which the compensation support will be applied, increases in fees for customs control, customs escort, and storage of goods during the export of non-oil and non-gas products will be prohibited. This approach will ensure predictability of export costs for SMBs while preventing additional financial risks.

Another important aspect of the Decree is the strengthening of transparency and accountability in the implementation process. A. Gadashov emphasized that compensation will be paid only for goods confirmed as Azerbaijani products through a certificate of origin and actually exported, ensuring the targeted use of public funds. At the same time, payments will be made quarterly by the Ministry of Economy of the Republic of Azerbaijan based on applications submitted by entrepreneurs, and the establishment of an upper limit for support per customs declaration provides an additional guarantee for efficient public budget management.

It should be noted that the Decree, which will enter into force on 1 September 2026 and be applied for a period of 5 years, is not limited to the compensation of administrative costs. It will also make an important contribution to strengthening the export potential of micro, small and medium businesses, promoting local production, and forming a sustainable economic value chain that facilitates the access of Azerbaijani products to international markets.