A Word from the Executive Director of AmCham
Dear AmCham Members and Friends,
Welcome once again to IMPACT Azerbaijan, the official publication Issue 18 of AmCham in Azerbaijan. Credits Our world is becoming a smaller place, and the workforce is becoming more mobile each year. Nowadays, people can move with relative ease across countries and continents to search for AmCham Executive Director: new places, better opportunities, and, as always, professional Nargiz Nasrullayeva-Muduroglu development. So, as our cover suggests, in this autumn issue we will focus on the issues of migration and travel. Editor: Jeyhun Atayev We have spent the last few months dealing with the impending reforms to migration legislation including organizing a seminar to inform our members of the implications of Articles contributed by: the new Migration Code and to share a detailed analysis of the practical effects of the changes, preparation of the comprehensive Position Paper on the draft code and holding Ilgar Mehti series of meetings with relevant Government agencies to present our position. We are Yevgeniya Hajiyeva and Arzu Jafarli proud to report that a number of vitally important amendments have been made to the Arif Guliyev final draft of the law based on AmCham Position Paper. Farouk Mohamed Azad Ahmadov We would like to express our gratitude to Mr. Firudin Nabiyev, Head of the State Migration Alexander Kalinichenko Service of the Republic of Azerbaijan, for providing answers to our questions on these issues. In his interview Mr. Nabiyev mentions the current high-level status of public-private Eldar Shahgaldiyev sector relations in Azerbaijan, and shares his expectations for further cooperation. We Arelis Gomez welcome this very positive development and look forward to increased cooperation with this and other State agencies within the framework of our common goal of strengthening Advertisers: the economy and promoting prosperity through a healthy business climate. The Landmark Hotel We have also been actively pursuing a wider range of activities since the last issue of PASHA Bank IMPACT, all of which you can read about in the magazine. Bakcell Enjoy the issue! Holcim (Azerbaijan) Kind regards, HRC Fairmont Baku Nargiz Nasrullayeva-Muduroglu Jumeirah Beach Hotel Human Resource Company (HRC) Editor’s Comment FINCA YapiKredi Dear Readers, It is a real pleasure for me to re-join the AmCham staff team, and Printing: I am delighted to meet you again in our current autumn issue of Nurlar IMPACT Magazine.
Publisher: In this issue, you can read about the worldwide trends in global American Chamber of Commerce mobility, recent reforms to Azerbaijani migration legislation, and in Azerbaijan the competitiveness of Azerbaijan travel and tourism industry. I am sure that many companies working in Azerbaijan consider this Tel: (+994 12) 497 13 33 to be a critical sector for economic development and sustainable Fax: (+994 12) 497 10 91 employment at the international level, but also particularly for our country. www.amchamaz.org Later on in this issue you will also find articles on perspectives on the implementation of Advertising opportunities: Advance Tax Ruling and Advance Pricing Agreement, threats to public health, the quality Please contact the Editor at of water that we drink, as well as reports from the Third Tax Conference conducted by AmCham together with the Ministry of Taxes, the Chamber’s business events, Committee [email protected] highlights, and last but not least, of our tremendous 18th Annual US Independence Day Tel: (+994 12) 497 13 33 Picnic.
The articles in IMPACT AZERBAIJAN As always, heartfelt thanks goes to our advertisers. Your loyalty makes our publication express the opinions of the authors and possible. The AmCham team is always interested in the views of members. If you have a do not necessarily reflect the position of suggestion for a theme for any future issue of IMPACT or would like to submit an article, we would be pleased to hear from you. the American Chamber of Commerce in Azerbaijan. Have a wonderful autumn!
Jeyhun Atayev
1 contents
IN FOCUS 4 Interview with Mr. Firudin 49 Farmer’s Access to Credit Nabiyev, Head of the State in Azerbaijan Migration Service
24 The New Migration AMCHAM AZERBAIJAN Code: Improvements and Challenges 52 About Us 53 Business Events 28 How competitive is Azerbaijan’s travel and tourism industry?
MEMBER CONTRIBUTION 55 Committee Highlights 32 "Flying Blind": Advance Tax Ruling 56 Social Events 56 AmCham 18th Annual Independence Day Picnic
34 Protecting the messenger The vital role of ‘whistle blowing’ in modern business 58 Summer Cocktail
38 Counterfeit medicines: a threat to public health 59 Back to Business Cocktail
DEVELOPMENT AND EDUCATION 42 I know what I drink 60 Projects
61 CSR Activities by members
63 Members’ News and Events 46 Socio-philosophical analysis of innovations 67 AmCham Calendar of Activities
68 (M2M) Discount Program
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Interview with Mr. Firudin Nabiyev Head of the State Migration Service of the Republic of Azerbaijan about the recently reforms to migration legislation
Mr. Nabiyev, I want to thank you for taking the time to speak of the Migration Code. “The Migration Code of the Republic of with us today. There have been some new amendments Azerbaijan” was developed according to the “State Migration to migration legislation. Please tell us about these. Program of the Republic of Azerbaijan” approved by Presidential Under the Presidential Decree no. 560 of March 19, 2007, an Decree no. 1575 dated July 25, 2006 of the of Republic of independent state authority was established in order to realize the Azerbaijan, ratified by the Law of the Republic of Azerbaijan state migration policy at the local level, to develop the management dated July 2, 2013. It came into effect in August 1 2013. system, to regulate and forecast the migration processes, and to coordinate the activity of state authorities in this sphere. In the short Along with the new regulations in the Code, the provisions of term, the material-technical base of the State Migration Service various enactments regulating the migration sphere have also has been developed; measures directed at enlarging its business been put in place. circles have been taken; and electronic data resources have In addition, the Code states the new visa categories, expiry been launched. Moreover, necessary additions and amendments date of each visa type, the list of documents required to obtain have been made to legislative (regulatory) acts and some new a visa, the rules for the issuance of visas, as well as the enactments have been approved in order to improve the general requirements fo electronic applications or residence permits. functioning of the migration bodies. Registration of foreigners and stateless persons and the basis and In order for the legislation to comply with the changing needs terms of their residency in Azerbaijan along with the application of the country, one of the measures taken was the adoption of other relevant regulations have been simplified.
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integration of foreigners to our society. Reasonable measures are being taken in this sphere.
According to the Code, visa applications by foreigners and stateless persons shall be considered within at least fifteen days, electronic visas for tourists within a maximum of 10 days, and in some special cases, within 2 working days. The duration of temporary stays for foreigners and stateless persons in the Republic of Azerbaijan may be extended for 60 days. Before the adoption of the Code, foreigners and stateless persons had to apply for a new visa with at least 7 working days until the expiry of the temporary residence permit but this has been reduced to 3 working days.
The temporary and permanent residence permits in the Republic of Azerbaijan shall be considered the identification documents for foreigners and stateless persons in the country. Of course, in addition to the Code, there are reasonable measures in regard to the realization of state controls of Under the Code, the transit rules for foreigners and stateless migration procedures. So, if foreigners or stateless persons persons have been amended, and the rules for their registration have provided false information about the purpose of their travel through a common migration database have been defined and for previous visits to the Republic of Azerbaijan previously, the registration procedure has been simplified. or have falsified information in their applications for entry to According to the newly adopted Migration Code, foreigners the Republic of Azerbaijan, or if they give false information and stateless persons may apply for registration at a location about themselves or their visit, or if they face administrative in the manner established by the legislation. responsibility twice or more over three years due to a breach of migration laws, they shall be prevented from entering the Simplification has been also considered for obtaining residence and work permits. The previous legislation did not allow temporary residence or work permits to be renewed The duration of temporary stays for more than four times, but the present Code has eliminated these limits. It should be noted that the persons who own real- foreigners and stateless persons in the estate to the value of at least 100,000 Manat in the Republic of Azerbaijan or funds in any bank of the Republic of Azerbaijan Republic of Azerbaijan may be extended will be able to obtain a temporary residence permit. for 60 days. The issuance of temporary residence permits to the foreigners and stateless persons who are engaged in business activity in Republic of Azerbaijan for 5 years. the Republic of Azerbaijan has already been approved. Such Moreover, if the circumstances that constituted the grounds for cases shall be considered as the basis for the issuance of the temporary residence permit in the Republic of Azerbaijan temporary residence permits in the Republic of Azerbaijan, have been eliminated or if there is no other basis for obtaining when the businesses have concluded employment contract the permit, or if they breach the declared purpose of their arrival with at least 5 full time or 10 persons with part-time contracts. to the Republic of Azerbaijan within the temporary residence In this case, at least 80 percent of employees at the company period, foreigners and stateless persons shall be denied a in question must be citizens of the Republic of Azerbaijan. temporary residence permit in the Republic of Azerbaijan, and In addition, the present Code states the provisions for the the previous permit shall be terminated. extension of one-year temporary residence permit for a further 2 years. The Code states provisions for the procedure for ascertaining and addressing the undesirability of a person’s presence in the Republic The Code also addresses the situation of family members, of Azerbaijan, on the procedure for consideration of foreigners and next of kin of foreigners or stateless persons and others, and stateless persons whose presence within the country is deemed this will prevent potential difficulties that may arise. undesirable for the next 5 years, on the extension of undesirability prohibitions for the same period of time (5 years) if the reasons There are new provisions to check the Azerbaijani language for this undesirability have not been removed. The Code further skills of foreigners and stateless persons who want to reside provides for the realization of the decision on their departure from permanently in our country, which will play an important role in the Republic of Azerbaijan by the migration bodies.
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In addition, there are exclusions in the Code. Foreigners and stateless persons are not required to get work permits if: they are married to citizens of the Republic of Azerbaijan; they have applied for refugee status; they have received refugee status or have been granted political shelter; they have guardianship of a person younger than 18 years old or a 1st group disabled person, who is considered a citizen of the Republic of Azerbaijan. The issuance of temporary and permanent residence permits in the Republic of Azerbaijan in exceptional cases to foreigners and stateless persons who are carriers of infectious disease and are married to a citizen of the Republic of Azerbaijan is also described in the Code.
Taking into account the rapid development of our state, foreigners and stateless persons who have made an investment of at least 500.000 Manat shall be given a temporary residence permit for 3 years.
How is immigrant status awarded to foreigners? How many people have received such status to date? In the Migration Code, the term “foreigners and persons with citizenship who received immigrant status” was replaced with “foreigner or person destitute of nationality permanently living in the Republic of Azerbaijan”.
According to the principles established by Articles 45.0.1- 45.0.7 of the Migration Code of the Republic of Azerbaijan According to the Code, when foreigners and stateless persons and on the basis of relevant permits, foreigners and stateless reside or live in the country on legal basis and reapply to persons living temporarily in the Republic of Azerbaijan are migration bodies, they shall submit a document confirming able to apply for permits for permanent residence. the elimination of circumstances that previously formed the A permanent residence permit card in the Republic of basis of a rejection to issue a temporary residence permit. Azerbaijan is the document granting permission to foreigners The simplified application form shall concern the denial of and stateless persons to reside permanently in the Republic permanent residence or work permits. of Azerbaijan, to travel abroad and return to the Republic of Along with the above, the Code states that if the foreigners Azerbaijan without a visa until the permit expires, as well as or stateless persons whose visas have been revoked, whose certifying the registration of foreigners and stateless persons presence in the Republic of Azerbaijan has been considered with regard to their place of residence. undesirable and who have been released without arrest do not have any relevant grounds to apply for residence in Foreigners and stateless persons should apply to the State the Republic of Azerbaijan. Migration bodies will make the Migration Service for anew permit at least 3 months before decision on their departure. These foreigners will be prohibited the expiry of the temporary residence permit in the Republic from entering Azerbaijan for 5 years. of Azerbaijan, if there is any circumstance allowing for a permanent residence permit. Foreigners and stateless persons who have been released without arrest, whose application for the extension of visa or Foreigners and stateless persons may apply for a permanent temporary stay permit was rejected, or who are considered residence permit in person or via other authorized representatives. undesirable should leave the country within 48 hours after Permanent residence permits in the Republic of Azerbaijan the decision about their departure. Foreigners or stateless for children under 14 shall be received with the applications persons whose temporary or permanent residence permits of their parents or other authorized representatives, but for have been cancelled should leave the country within 10 days. children aged 14-18, consent shall also be required. Decisions about these departures shall be executed by migration bodies. Applications for permanent residence permits and other documents may be submitted in electronic form. Are all the rules the same for all foreigners? Or are there While considering the applications of foreigners and stateless any compromises depending on their area of activity? persons for permanent residence permits in the Republic of The application of the Migration Code of the Republic of Azerbaijan, their rights and duties provided by the Laws of the Azerbaijan is the same for all foreigners and stateless persons. Republic of Azerbaijan as well as official state language skills
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are investigated by a committee of specialists that reports to religious organizations; the relevant executive powers. • In case of basis provided by international treaties of the Republic of Azerbaijan. In respect to permanent residence permits, the State Migration Service shall send relevant applications to the executive The State Migration Service shall not issue any permanent powers and other related bodies to receive official certificates. residence permit to foreigners and stateless persons in the Applications for permanent residence shall be decided within following cases (duration is not extended) and previously 2 months. issued permits shall be cancelled:
Permanent residence permits shall be issued for 5 years. If 1. In cases of damage to national security or public order of the reapplication by foreigner and stateless persons (within at the Republic of Azerbaijan; least 3 months before the expiry of the permit) is successful, 2. In cases where the applicant is a carrier of an infectious the duration of the permanent residence permit shall be disease as confirmed by relevant executive powers extended for the next 5 years. The number of extensions is (excluding persons married to a citizen of the Republic of unlimited. In this case all documents mentioned in Article 53 of Azerbaijan); the Migration Code shall be resubmitted. 3. In case of unavailability of identification documents or non-submission of one or more documents required by Foreigners and stateless persons temporarily residing in the Article 53 of the Migration Code; Republic of Azerbaijan may not apply for permanent residence 4. In case of submission of false documentation or permits in the Republic of Azerbaijan on the following grounds: information in an attempt to obtain a permanent residence permit in the Republic of Azerbaijan; • In case of receipt of work permit in a manner provided by 5. In case of imprisonment due to intentional or special the Migration Code for engaging with hired activity in the grave crimes, if the conviction is cleared or discharged in Republic of Azerbaijan; a manner established by the law. • In case of study in institutes of higher education and 6. In case of unavailability of funds that may meet the secondary professional education in full-time and minimum demands of the application and other family comprehensive schools; members (excluding cases where a person with a • In case of professional religious activity in registered permanent residence permit or next of kin of a citizen of
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the Republic of Azerbaijan shall bear responsibility for the rules, the State Migration Service shall send applications applicant while in the country); to large-scale enterprises in the country in order to obtain 7. In case of leaving the Republic of Azerbaijan to obtain information on the projected number of foreigners expected to permanent residence in another country); be brought to country for the next year, and then replies to the 8. In case of being outside of the Republic of Azerbaijan applications are submitted to the Cabinet of Ministers. It should more than 180 days in total within per year since issuance be mentioned that the annual quota of working migrants for of permanent residence permit; the current year is 12,000 persons. 9. In case of elimination of circumstances constituting the basis for the receipt of permanent residence permit; Where should foreigners apply in case of any difficulties? 10. When the foreigner or stateless person residing in the The State Migration Service of the Republic of Azerbaijan Republic of Azerbaijan permanently does not know the regularly takes reasonable measures for communicating, official state language and also the rights and duties informing the citizens, foreigners and stateless persons about provided for by the Laws of the Republic of Azerbaijan; the news and necessary events in the migration sphere and 11. When those persons considered are undesirable in the their outreach activities. Until today, regular outreach activities Republic of Azerbaijan; have been conducted in regard to the legal status of foreigners 12. In case of any existing decision about their departure from and the requirements of the legislation in the migration sphere. the Republic of Azerbaijan; There have been meetings with accredited representatives, 13. When those persons breach the declared purpose some private sector representatives in the Republic of of arrival in the Republic of Azerbaijan while residing Azerbaijan and executive staff of the State Migration Service permanently in the Republic of Azerbaijan. of the Republic of Azerbaijan, and booklets have been developed. In addition, movies and video trailers are being It shall be possible to appeal against the refusal of a permanent demonstrated. For educating citizens, foreigners and stateless residence permit (from the extension of duration) in the Republic persons movies such as “About Citizenship”, “International of Azerbaijan or cancellation of permanent residence permit subject to legal process and (or) administrative procedure In 2012, the State Migration Service according to the legislation of the Republic of Azerbaijan. From January 2009 till August 2013, the State Migration issued permits for 11970 work places Service issued 8719 permanent residence permits to foreigners and stateless persons. and 6521 within first the 6 months
Which problems do working migrants have? How many of the current year to foreigners and migrants have been issued individual permit to work? In stateless persons general terms, is there a quota for working migrants? As mentioned above, the State Migration Service not only Day of Migrants”, “6th anniversary of the State Migration regulates the processes according to the applicable legislation, Service”, “The State Migration Service of the Republic of but also maintains state control of the compliance with the Azerbaijan represents”, “To the attention of Foreigners” as requirements of the legislation. Some foreigners do not work well as other movies dedicated to 90th anniversary of Heydar according to the legislation. The main problem with working Aliyev, our National Leader. Those movies are posted on migrants is their legalization. From this standpoint, the State the website of the Service and broadcasted on television Migration Service conducts regular inspections where illegal channels. Besides, in view of the need to fully inform working migrants are identified and legalized according to the foreigners and stateless persons coming to our country about legislation. the migration legislation in regard to their registration on place Moreover, it should be noted that while analyzing the of residence, some summaries have been produced. They are applications issued for work permits, there are so many regularly broadcasted on television channels. Other important problems in regard to poor levels of specialization and outreach activities have also been conducted in regard to the educational standards of working migrants and work new Migration Code of the Republic of Azerbaijan. Interviews experience in relation to the position they claim. with authorized representatives of the State Migration In 2012, the State Migration Service issued permits for 11970 Service have been broadcasted on television channels and work places and 6521 within first the 6 months of the current a detailed article was published in “Respublika” newspaper. year to foreigners and stateless persons in order to engage in In addition, for foreigners, slide-texts have been developed in hired activity according to the Decision of Cabinet of Ministers Azerbaijan, Russian and English languages in regard to news of the Republic of Azerbaijan. relating to the migration sphere and have been placed in the waiting room of the Central Department of the State Migration Every year, the limit of working migrants to be allowed into Service. Outreach activities have been also conducted in the the country for the next year shall be defined by Cabinet of regions. Authorized persons of the State Migration Service Ministers of the Republic of Azerbaijan according to the gave detailed information in public about the migration sphere legislation of the Republic of Azerbaijan. According to the during meetings and lectures.
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In addition to the above, the State Migration Service developed outreach activities. The Twinning Project provides a practical a booklet on “The Rights and Responsibilities of Foreigners experience exchange for the development of cooperation and Stateless Persons”. activities at the state level between member states of European “Migration” magazine also talks about the activity of the Union and beneficiary states. State Migration Service, and is published in 3 languages – Azerbaijan, Russian and English. Additionally, since January of this year, the execution of With the aim of studying international practice in migration sphere the project “Support for efficient readmission management in order to develop the management of migration processes and development in the Southern Caucasus countries” has been manpower training, the State Migration Service has developed started. The projects and seminars are based on international a training program. Regular seminars are conducted in line with standards and aim to train young people with advanced this program; lectures are delivered and the State Migration professional skills in the migration sphere. The main purpose Service arranges educational-training courses to ensure the of the short-term improvement of professional skills program pre-job training of newly appointed employees. on “Public regulation of migration processes” in the faculty of “Improvement of professional skills of leading men” of the The State Migration Service may draw upon the supportive Academy of Public Administration under the President of instruments of the European Union. Thus, in view of measures the Republic of Azerbaijan was to deliver new information for integration into Europe, the State Migration Service of about reforms pursued in this sphere, and on the study and the Republic of Azerbaijan has been participating in the application of international practice. Twinning Project, which since 2009 has been considered a key instrument of the European Union. The implementation I should say that seminars conducted on “Readmission and of the Twinning Project in Azerbaijan started in January 14, Return support” within the scope of the European Union 2013 and is expected to continue until January 14, 2015. Expertise Program in Migration Sphere by initiation of the Within the framework of the project,46 seminars and trainings State Migration Service and support of European Union and are planned. The project is aimed at the harmonization of International Centre for Migration Policy Development, and migration legislation with EU legislation, prevention of illegal training-seminars on “Document Inspection” in Education- migration by systematic analysis, improvement of professional Training Centre of the State Migration Service of the Republic skills by trainings and promotion of information campaigns and of Azerbaijan initiated by the Embassy of Kingdom of The
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Netherlands, which involved representatives of this country, are large-scale experience in practical issues of these entities, integral to the training of young people. Within the scope of the which are direct participants in migration processes. European Union Expertise Program in Migration Sphere, events covered different subjects, including the most serious global How would you like to see the future cooperation between problems, such as migration and mobilization, safe placement the State Migration Service and business associations, of people, protection of people looking for shelter, the activity of especially the American Chamber of Commerce? centers housing illegal migrants. In the scope of the program, Existing relations between the public and private sectors employees of migration bodies participated in educational tour in Azerbaijan shall increase the expectations of for further across the Member States of the European Union. cooperation. The dedicated and varied policy of public administration is one of the main factors contributing to a State Migration Service employees have participated in favorable environment for this cooperation. Guiding this policy, trainings and courses for improvement of professional the State Migration Service appreciates its relations with business skills conducted by international organizations acting in the associations and the private sector supports the development migration sphere, such as the European Union, IOM, ILO, of cooperation. An obvious example of this is the dialogue UNO, UNHCR. between the State Migration Service and American Chamber of Commerce, ATIB, TUSIAB, and other business associations. Today, different services are being implemented within the framework of “Electronic Government” in Azerbaijan; AMCHAM Azerbaijan is the full member of Chamber of one area is for citizens and others for the business sector. Commerce of the United States of America. AMCHAM What kind of electronic services does the State Migration Azerbaijan provides consultative support for the development Service provide? of the business sphere in our country. As I mentioned Toward the execution of Decree 429 dated May 23, 2011 of before, I recall regular bilateral negotiations and information the President of the Republic of Azerbaijan in regard to “Some seminars conducted with American Chamber of Commerce measures in arrangement of electronic services of State and the State Migration service. From 2009, representatives Authorities” there are services under 10 titles in electronic of the State Migration Service have regularly participated in services that are performed by the State Migration Service of events organized by the American Chamber of Commerce, the Republic of Azerbaijan. Applications for receipt of “Work the management of the State Migration Service has received permit” for foreigners or stateless persons by legal entities AMCHAM representatives and discussions have been or individuals in order to carry out the business activity, held. The cooperation between the American Chamber of extension of temporary residence permit by foreigners or Commerce in Azerbaijan and the State Migration Service has stateless persons, receipt of temporary and permanent improved in the2012 – 2013 period. residence permits, surrendering of nationality of the Republic I hope the existing relationship between our organizations will of Azerbaijan, cancellation, recovery as well as other job continue to develop. applications to Migration bodies can be made electronically. In addition, for online payment of all duties and penalties, there Mr. Nabiyev, thank you for the interview. is a dedicated electronic service section on the official website of the State Migration Service. Short bio of our Guest. Mr. Firudin Nabiyev graduated from Ivanovo Chemistry Mr. Nabiyev, I would like to return to the beginning of our Technology Institute in 1988 and from the Law School at Baku speech. Tell us your opinion on the role of civil society State University in 2009. From August 1988,he held various and business associations in the final amendments to positions at the Ministry of Light Industry of Azerbaijan Republic. this legislation? On 25 September 2001, he was appointed as the Deputy Chief Before the adoption of the Migration Code, migrants’ existing of Border Troops for the Main Department of the Ministry of problems were identified, analyzed and the results were National Security. On 1 July 2003 he was appointed as Deputy considered in writing the new Code. In addition, round tables Chief of the State Border Service on Logistical Support. On with the participation of international organizations (IOM, 15 August 2006 he was awarded with the military rank of UNHCR and American Chamber of Commerce) have been major-general. On 16 January he was appointed as a First held and discussions have been conducted. Representative Deputy Chief of the State Border Service and Chief of Border Offices of International Organization for Migration and United Troops’ Headquarters. On 13 February 2012, Mr. Nabiyev Nations High Commissioner for Refugees in the Republic was appointed as Chief of the State Migration Service of the of Azerbaijan and American Chamber of Commerce made Republic of Azerbaijan. Mr. Nabiyev has been awarded with six relevant suggestions for the draft of Migration Code and medals and two orders: III rank "for Service to Motherland" and some of those have been included. This is clear evidence of "Flag of Azerbaijan". direct participation by civil society and business associations. The State Migration Service conducts bilateral negotiations In case of discrepancy between the texts in the English with those groups in regard to the development of laws and language and the Azerbaijani language, the Azerbaijani text regulation of migration processes, taking into account the shall prevail under all circumstances.
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Azərbaycan Respublikası Dövlət Miqrasiya Xidmətinin rəisi
Azərbaycanda Amerika Ticarət Palatasının “IMPACT Azerbaijan” jurnalına miqrasiya sahəsində son zamanlar aparılan islahatlar barədə müsahibəsi
Azərbaycanda bu yaxınlarda miqrasiya qanunvericiliyində Qanunvericiliyin yeni dövrün tələblərinə uyğunlaşdırılması dəyişikliklər qüvvəyə minib. Bu barədə məlumat verməyinizi məqsədilə həyata keçirilmiş tədbirlərdən biri də Miqrasiya xahiş edirəm. Məcəlləsinin qəbul edilməsi olmuşdur. “Azərbaycan Ölkəmizdə miqrasiya sahəsində dövlət siyasətinin həyata Respublikasının Miqrasiya Məcəlləsi" Azərbaycan Respublikası keçirilməsi, idarəetmə sisteminin inkişaf etdirilməsi, miqrasiya Prezidentinin 25 iyul 2006-cı il tarixli, 1575 nömrəli Sərəncamı proseslərinin tənzimlənməsi və proqnozlaşdırılması, bu sahədə ilə təsdiq edilmiş "Azərbaycan Respublikasının Dövlət müvafiq dövlət orqanlarının fəaliyyətinin əlaqələndirilməsi Miqrasiya Proqramı"na əsasən hazırlanmış, Azərbaycan məqsədi ilə Azərbaycan Respublikasının Prezidenti cənab Respublikasının 2013-cü il 2 iyul tarixli Qanunu ilə təsdiq İlham Əliyevin 19 mart 2007-ci il tarixli 560 nömrəli Fərmanı edilmiş və cari ilin avqust ayının 1-dən qüvvəyə minmişdir. ilə müstəqil dövlət orqanı olan Dövlət Miqrasiya Xidməti Məcəllədə yeni normalarla yanaşı, miqrasiya sahəsini yaradılmışdır. Yaradıldığı vaxtdan qısa müddət ərzində Dövlət tənzimləyən müxtəlif normativ hüquqi aktların müddəaları da Miqrasiya Xidmətinin maddi-texniki bazası və infrastrukturu toplanmışdır. inkişaf etdirilmiş, fəaliyyət dairəsinin genişləndirilməsi istiqamətində bir sıra tədbirlər həyata keçirilmiş, elektron Bundan əlavə, Məcəllədə vizaların yeni kateqoriyaları, hər informasiya resursları formalaşdırılmışdır. Həmçinin, vizanın qalma müddəti, viza verilməsi üçün tələb olunan miqrasiya orqanlarının fəaliyyətinin daha da təkmilləşdirilməsi sənədlərin siyahısı, vizaların verilməsi qaydası öz əksini məqsədilə qanunvericilik aktlarına zəruri əlavə və düzəlişlər tapmış, habelə Azərbaycan Respublikasının ərazisində olma olunmuş, yeni normativ aktlar qəbul edilmişdir. və ya yaşama icazələrinin alınması üçün elektron qaydada
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Bunlarla yanaşı, 1 il müddətinə verilən müvəqqəti yaşama icazələrinin növbəti dəfə 2 ilədək müddətə uzadılmasına dair müddəalar Məcəllədə öz əksini tapmışdır. Məcəllədə əcnəbinin və ya vətəndaşlığı olmayan şəxsin ailə üzvləri, yaxın qohumluq və digər anlayışların təfsiri verilmişdir ki, bu da bir sıra hallarda rast gəlinən anlaşılmazlıqların qarşısını alacaqdır.
Ölkəmizdə daimi yaşamaq istəyən əcnəbilərin və vətəndaşlığı olmayan şəxslərin hüquq və vəzifələrinin, habelə dövlət dili ilə bağlı biliklərinin yoxlanılması ilə əlaqədar müddəalar ölkəmiz üçün yeni olsa da, əcnəbilərin cəmiyyətimizə inteqrasiyası baxımından böyük əhəmiyyət daşıyır. Bu sahədə artıq müvafiq işlər görülməkdədir.
Məcəlləyə görə viza verilməsi haqqında əcnəbilərin və vətəndaşlığı olmayan şəxslərin vəsatətlərinə müraciət olunduğu gündən ən geci on beş gün, turistlər üçün elektron vizanın alınması üçün müraciətlərə ən geci 10 gün, müəyyən hallarda isə ən geci 2 iş günü ərzində baxılacaqdır. müraciət etmək imkanı nəzərdə tutulmuşdur. Bununla belə, artıq Azərbaycan Respublikasına gələn Əcnəbilərin və vətəndaşlığı olmayan şəxslərin olduğu yer əcnəbilərin və vətəndaşlığı olmayan şəxslərin ölkədə üzrə qeydiyyatı, ölkə ərazisində yaşamalarının əsasları müvəqqəti olma müddəti 60 günədək uzadıla bilər. və müddətləri, eləcə də nəzərdə tutulmuş digər müvafiq normaların tətbiqi sadələşdirilmişdir. Miqrasiya Məcəlləsi qəbul edilənədək əcnəbilər və vətəndaşlığı olmayan şəxslər Azərbaycan Respublikasında müvəqqəti Məcəllənin qəbulu ilə əcnəbilərin və vətəndaşlığı olmayan olma müddətinin bitməsinə azı 7 iş günü qalmış miqrasiya şəxslərin ölkə ərazisindən tranzit keçidi qaydalarında orqanlarına müraciət etməli idilərsə, artıq həmin müddət azı 3 dəyişikliklər edilmiş, onların vahid miqrasiya məlumat sistemi iş gününə endirilmişdir. vasitəsi ilə olduğu yer üzrə qeydiyyata alınması qaydası Azərbaycan Respublikasının ərazisində müvəqqəti və ya müəyyənləşdirilmiş, qeydiyyat proseduru sadələşdirilmişdir. daimi yaşamaq üçün icazə vəsiqəsi həm də əcnəbilərin və Yeni qəbul edilmiş Miqrasiya Məcəlləsinə görə əcnəbilər vətəndaşlığı olmayan şəxslərin ölkə ərazisində şəxsiyyətini və vətəndaşlığı olmayan şəxslərin özləri də olduğu yer üzrə təsdiq edən sənəd kimi tanınacaqdır. qeydiyyata alınmaları üçün qanunvericilikdə müəyyən olunmuş qaydada müraciət edə bilərlər. Əlbəttə, Məcəllədə qeyd olunanlarla yanaşı miqrasiya prosesləri üzərində dövlət nəzarətinin həyata keçirilməsi ilə Sadələşmə yaşama və iş icazələrinin verilməsi sahəsində bağlı məsələlər üzrə də müəyyən işlərin aparılması nəzərdə də nəzərdə tutulmuşdur. Qüvvədə olan qanunvericilik tutulmuşdur. Belə ki, əcnəbi və vətəndaşlığı olmayan şəxs müvəqqəti yaşamaq üçün icazənin, o cümlədən əmək əvvəllər Azərbaycan Respublikasında olarkən ölkəyə fəaliyyəti ilə məşğul olmaq üçün fərdi icazənin müddəti dörd gəlişinin bəyan edilmiş məqsədlərini pozduqda, Azərbaycan dəfədən artıq uzadılmasına yol vermirdi, məcəllənin qəbulu Respublikasına gəlməsi haqqında vəsatət qaldırarkən, özü və ilə bu məhdudiyyət aradan qaldırılmışdır. Qeyd edilməlidir ki, ya səfərinin məqsədi haqqında yalan məlumat verdikdə, yaxud Azərbaycan Respublikasının ərazisində azı 100.000 manat miqrasiya qanunvericiliyini pozduğuna görə son üç il ərzində dəyərində daşınmaz əmlakı və ya Azərbaycan Respublikasının iki dəfə və ya daha çox inzibati məsuliyyətə cəlb olunduqda banklarında həmin məbləğdə pul vəsaiti olan şəxslər ölkə onların Azərbaycan Respublikasına gəlişinə 5 il müddətinə ərazisində müvəqqəti yaşamaq üçün icazə ala biləcəklər. qadağa qoyulur.
Azərbaycan Respublikasında sahibkarlıq fəaliyyəti ilə məşğul Bununla yanaşı Azərbaycan Respublikasının ərazisində olduqda əcnəbilərə və vətəndaşlığı olmayan şəxslərə Azərbaycan müvəqqəti yaşamağa icazə alınması üçün əsas olmuş hal Respublikasının ərazisində müvəqqəti yaşamaq üçün icazə aradan qalxdıqda və icazə alınması ilə bağlı digər əsaslar verilməsi nəzərə tutulmuşdur. Lakin bu hal o vaxt Azərbaycan olmadıqda, yaxud Azərbaycan Respublikasının ərazisində Respublikasının ərazisində müvəqqəti yaşamaq üçün icazənin müvəqqəti yaşadığı dövrdə Azərbaycan Respublikasına verilməsinə əsas hesab olunacaqdır ki, həmin şəxslər azı 5 nəfər gəlişinin bəyan edilmiş məqsədini pozduqda əcnəbilərə və ilə tam iş vaxtı şəraitində və ya 10 nəfər ilə natamam iş vaxtı vətəndaşlığı olmayan şəxslərə Azərbaycan Respublikasının şəraitində əmək müqaviləsi bağlamaqla faktiki fəaliyyət göstərmiş ərazisində müvəqqəti yaşamaq üçün icazə verilmir, əvvəl olsunlar. Bu hal üzrə işçilərin ən azı 80 faizinin Azərbaycan verilmiş icazə isə ləğv edilir. Respublikasının vətəndaşı olması tələb edilir. Məcəllədə Azərbaycan Respublikasının ərazisində olmalarının
16 Issue 18
in focus
arzuolunmaz hesab edilməsi proseduru müəyyən edilmiş, Respublikasının ərazisində müvəqqəti və ya daimi yaşama həmin əcnəbilərin və vətəndaşlığı olmayan şəxslərin icazələrinin verilməsi Məcəllədə öz əksini tapmışdır. arzuolunmaz hesab edilməsinin 5 il müddətinə müəyyən Həmçinin Dövlətimizin inkişaf sürəti nəzərə alınaraq ölkə edilməsi, müvafiq əsaslar aradan qalxmadıqda eyni müddətə iqtisadiyyatına azı 500.000 manat investisiya qoyan əcnəbilər uzadıla bilməsi və həmin şəxslər barəsində Azərbaycan və vətəndaşlığı olmayan şəxslərə 3 ilədək müddətə müvəqqəti Respublikasının hüdudlarından kənara çıxarılması haqqında yaşamaq üçün icazə verilir. qərar qəbul edilməsinin miqrasiya orqanları tərəfindən həyata keçirilməsi məsələləri də öz əksini tapmışdır. Əcnəbi vətəndaşlara immiqrant statusu verilməsi məsələsi necə həll edilir? İndiyənə kimi neçə belə şəxsə bu status Məcəlləyə görə əcnəbilər və vətəndaşlığı olmayan şəxslər verilib? ölkədə qanuni əsaslarla qaldıqları və ya yaşadıqları müddət Miqrasiya Məcəlləsində immiqrant statusu verilmiş əcnəbi ərzində miqrasiya orqanlarına təkrar müraciət edərlərsə, və ya vətəndaşlığı olmayan şəxs ifadəsi Azərbaycan yalnız müvəqqəti yaşamaq üçün icazənin verilməsindən imtina Respublikasında daimi yaşayan əcnəbi və ya vətəndaşlığı edilməsinə əsas olan halın aradan qalxdığını təsdiqləyən olmayan şəxs ifadəsi ilə əvəz edilmişdir. sənədi təqdim edəcəklər. Belə sadələşdirilmiş müraciət forması daimi yaşamaq üçün icazə və iş icazəsinin verilməsindən Azərbaycan Respublikası Miqrasiya Məcəlləsinin 45.0.1- imtina edildiyi hallara da şamil olunacaqdır. 45.0.7-ci maddələrində nəzərdə tutulmuş əsaslarla müvafiq icazə əsasında azı 2 il Azərbaycan Respublikasının ərazisində Bundan əlavə, sənəddə vizası, müvəqqəti olma müddətinin müvəqqəti yaşayan əcnəbilər və vətəndaşlığı olmayan şəxslər uzadılması barədə qərarı, yaxud müvəqqəti və ya daimi Azərbaycan Respublikasının ərazisində daimi yaşamaq yaşamaq üçün icazəsi ləğv edilmiş, Azərbaycan Respublikası icazəsi almaq üçün vəsatət verə bilərlər. ərazisində olması arzuolunmaz hesab edilən, o cümlədən Azərbaycan Respublikasının ərazisində daimi yaşamaq üçün cəza çəkmədən azad edilmiş əcnəbilərin və ya vətəndaşlığı olmayan şəxslərin Azərbaycan Respublikasında yaşamaları Azərbaycan Respublikasına gələn üçün müvafiq əsasları olmadıqda onların miqrasiya orqanları tərəfindən kənara çıxarılmaları haqqında qərar qəbul edilməsi əcnəbilərin və vətəndaşlığı olmayan məsələləri və s. öz əksini tapmışdır. Belə əcnəbilərin ölkə ərazisinə gəlmələrinə 5 ilədək müddətə məhdudiyyət qoyulur. şəxslərin ölkədə müvəqqəti olma
Eyni zamanda, cəza çəkməkdən azad edilmiş, vizası və ya müddəti 60 günədək uzadıla bilər. müvəqqəti olma müddətinin uzadılması barədə qərarı ləğv edilmiş, habelə Azərbaycan Respublikasının ərazisində icazə vəsiqəsi əcnəbilərə və vətəndaşlığı olmayan şəxslərə olması arzuolunmaz hesab edilmiş əcnəbilərin və vətəndaşlığı Azərbaycan Respublikasının ərazisində daimi yaşamaq üçün olmayan şəxslərin kənara çıxarmaları haqqında qərar təqdim icazə və etibarlılıq müddətində Azərbaycan Respublikasından edildiyi vaxtdan 48 saat ərzində, müvəqqəti və ya daimi getmək və viza almadan Azərbaycan Respublikasına qayıtmaq yaşamaq üçün icazəsi ləğv edilmiş əcnəbilərin və vətəndaşlığı hüququ verən, habelə həmin şəxslərin ölkə ərazisində şəxsiyyətini olmayan şəxslərin isə 10 gün ərzində ölkəni tərk etmək öhdəliyi və yaşayış yeri üzrə qeydiyyata alındığını təsdiq edənsənəddir. də onların üzərlərinə qoyulmuşdur. Kənara çıxarma haqqında qərar da miqrasiya orqanları Əcnəbilər və vətəndaşlığı olmayan şəxslər, Azərbaycan tərəfindən icra ediləcəkdir. Respublikasında daimi yaşamaq üçün icazə verilməsinə əsas olan hallar mövcud olduqda, Azərbaycan Respublikasının Qaydalar bütün əcnəbi vətəndaşlar üçün eynidirmi? ərazisində müvəqqəti yaşama icazəsinin müddətinin bitməsinə Yoxsa fəaliyyət sahəsindən asılı olaraq onlara güzəştlər ən azı 3 ay qalmış bu barədə icazə alınması üçün Dövlət edilə bilər? Miqrasiya Xidmətinə müraciət etməlidirlər. Azərbaycan Respublikası Miqrasiya Məcəlləsinin tətbiq edilməsi bütün əcnəbi və vətəndaşlığı olmayan şəxslər üçün eynidir. Əcnəbilər və vətəndaşlığı olmayan şəxslər Azərbaycan Bununla yanaşı Məcəllədə müəyyən istisnalar da nəzərdə Respublikasında daimi yaşamaq üçün şəxsən və ya qanuni tutulmuşdur.Azərbaycan Respublikasının vətəndaşı ilə nümayəndələri vasitəsi ilə müraciət edirlər. nikahda olan, qaçqın statusunun verilməsi üçün vəsatət verən, qaçqın statusu almış və ya siyasi sığınacaq verilmiş 14 yaşına çatmamış uşağın Azərbaycan Respublikasında şəxslərə, eləcə də himayəsində 18 yaşına çatmamış və ya I daimi yaşamaq üçün icazəsi valideyninin və ya digər qanuni qrup əlil Azərbaycan Respublikasının vətəndaşı olan əcnəbilər nümayəndəsinin müraciəti əsasında, 14-18 yaşı olan uşağın və vətəndaşlığı olmayan şəxslərə iş icazəsi alınması tələb isə razılığı alınmaqla, valideyninin və ya digər qanuni olunmur. nümayəndəsinin müraciəti əsasında alınır. Müstəsna hal kimi təhlükəli yoluxucu xəstəlik virus daşıyıcısı olan və Azərbaycan Respublikasının vətəndaşı ilə nikahda Azərbaycan Respublikasının ərazisində daimi yaşamaq üçün olan əcnəbilərə və vətəndaşlığı olmayan şəxslərə Azərbaycan icazənin verilməsi barədə ərizə-anket və tələb olunan digər
18 Issue 18
in focus
Dövlət Miqrasiya Xidməti tərəfindən əcnəbiyə və vətəndaşlığı olmayan şəxsə bu hallarda Azərbaycan Respublikasında daimi yaşamaq üçün icazə verilmir (müddəti uzadılmır), əvvəl verilmiş icazə isə ləğv edilir:
1. Azərbaycan Respublikasının milli təhlükəsizliyinə və ya ictimai asayişə zərər vurula biləcəyi hallarda; 2. Siyahısı müvafiq icra hakimiyyəti orqanı tərəfindən təsdiq edilən təhlükəli yoluxucu xəstəlik virusu daşıyıcısı olduqda (Azərbaycan Respublikasının vətəndaşı ilə nikahda olanlar istisna olmaqla); 3. Şəxsiyyətini təsdiq edən sənədləri olmadıqda və ya Miqrasiya Məcəlləsinin 53-cü maddəsində nəzərdə tutulan sənədlərdən biri və ya bir neçəsi təqdim edilmədikdə; 4. Azərbaycan Respublikasında daimi yaşama icazəsi almaq üçün saxta sənədlər təqdim edildikdə və ya yalan məlumatlar verildikdə; sənədlər elektron müraciət formasında təqdim edilə bilər. 5. Qəsdən ağır və ya xüsusilə ağır cinayət törətdiyinə görə məhkum olunduqda, əgər məhkumluğu qanunla Əcnəbilərin və vətəndaşlığı olmayan şəxslərin Azərbaycan müəyyən edilmiş qaydada ödənilməmişdirsə və ya Respublikasında daimi yaşamaq üçün icazə verilməsi ilə bağlı götürülməmişdirsə; müraciətlərinə baxılarkən, onların Azərbaycan Respublikasının 6. Özlərinin və onlarla gələn ailə üzvlərinin minimal tələbatını qanunları ilə nəzərdə tutulmuş hüquq və vəzifələri, habelə ödəyə bilən vəsaiti olmadıqda (yaxın qohumu olan dövlət dili ilə bağlı biliyi müvafiq icra hakimiyyəti orqanlarının Azərbaycan Respublikasının vətəndaşı və ya Azərbaycan mütəxəssislərindən ibarət komissiya tərəfindən yoxlanılır. Respublikasında daimi yaşamaq üçün icazə almış şəxs ölkədə qaldıqları vaxtda onların təminatını öz üzərinə Dövlət Miqrasiya Xidməti daimi yaşamaq üçün icazənin götürdüyü hallar istisna olmaqla); verilməsi ilə bağlı müvafiq icra hakimiyyəti orqanına və 7. Xarici dövlətdə daimi yaşamaq üçün Azərbaycan digər aidiyyəti qurumlara müvafiq sorğular göndərir və rəsmi Respublikasının ərazisini tərk etdikdə; arayışlar alır. 8. Daimi yaşamaq üçün icazənin verildiyi gündən etibarən hər bir il ərzində Azərbaycan Respublikasının ərazisindən Azərbaycan Respublikasında daimi yaşama icazəsi almaq kənarda olduğu günlərin cəmi 180 gündən çox olduqda; üçün müraciət etmiş şəxsin vəsatətinə 2 ay müddətində 9. Azərbaycan Respublikasının ərazisində müvəqqəti baxılmaqla, müvafiq qərar qəbul edilir. yaşamağa icazə alması üçün əsas olmuş hallar aradan qalxdıqda; Azərbaycan Respublikasında daimi yaşamaq üçün icazə 5 10. Azərbaycan Respublikasının ərazisində daimi yaşayan il müddətinəverilir. Bu müddətin bitməsinə azı 3 ay qalmış əcnəbinin və ya vətəndaşlığı olmayan şəxsin Azərbaycan əcnəbinin və vətəndaşlığı olmayan şəxsin müraciətinə əsasən Respublikasının qanunları ilə nəzərdə tutulmuş hüquq və daimi yaşamaq üçün verilmiş icazə yenidən 5 il müddətinə vəzifələrini, habelə dövlət dilini bilmədikdə; uzadıla bilər. Uzadılmaların sayı məhdudlaşdırılmır. Bu zaman 11. Azərbaycan Respublikasında olması arzu olunmaz hesab Miqrasiya Məcəlləsinin 53-cü maddəsində nəzərdə tutulan edildikdə; sənədlər yenidən təqdim olunur. 12. Barəsində Azərbaycan Respublikasının hüdudlarından kənara çıxarılma barədə qərar qəbul edildikdə; Aşağıda qeyd olunan əsaslarla Azərbaycan Respublikasının 13. Azərbaycan Respublikasının ərazisində daimi yaşadığı ərazisində müvəqqəti yaşayan əcnəbilər və vətəndaşlığı ol- dövrdə Azərbaycan Respublikasına gəlişinin bəyan mayan şəxslər Azərbaycan Respublikasının ərazisində daimi edilmiş məqsədini pozduqda. yaşamaq icazəsi almaq üçün vəsatət verə bilməzlər: Azərbaycan Respublikasında daimi yaşamaq üçün icazənin • Azərbaycan Respublikasının ərazisində haqqı ödənilən verilməsindən (müddətinin uzadılmasından) imtina və ya əmək fəaliyyəti ilə məşğul olmaq üçün Miqrasiya Məcəlləsi daimi yaşamaq üçün icazənin ləğv edilməsi haqqında qərardan ilə müəyyən edilmiş qaydada iş icazəsi aldıqda; Azərbaycan Respublikasının qanunvericiliyinə müvafiq olaraq • Azərbaycan Respublikasının ali və orta ixtisas təhsili inzibati qaydada və (vəya) məhkəmə qaydasında şikayət müəssisələrində əyani formada və ümumtəhsil verilə bilər. müəssisələrində təhsil aldıqda; • dövlət qeydiyyatına alınmış dini qurumlarda peşəkar dini 2009-cu ilin yanvar ayından 2013-cü ilin avqust ayınadək fəaliyyətlə məşğul olduqda; Dövlət Miqrasiya Xidməti tərəfindən əcnəbilərə və vətəndaşlığı • Azərbaycan Respublikasının beynəlxalq müqavilələrində olmayan şəxslərə 8719 daimi yaşama icazəsi verilmişdir. nəzərdə tutulmuş əsaslar olduqda.
20 Issue 18 in focus
Əməkçi miqrantlarla hansı problemlər var? Neçə miqranta Azərbaycan Respublikası Dövlət Miqrasiya Xidməti miqrasiya respublikada işləmək üçün fərdi icazə verilib? Ümumiyyətlə, sahəsində baş verən yeniliklərin və mühüm tədbirlərin əməkçi miqrantlarla bağlı kvota müəyyən edilibmi? vətəndaşlara, əcnəbilərə və vətəndaşlığı olmayan şəxslərə Qeyd edildiyi kimi, Dövlət Miqrasiya Xidməti miqrasiya çatdırılması, onların məlumatlandırılması və maarifləndirilməsi sahəsində olan mövcud qanunvericiliyin tələblərinə istiqamətində müntəzəm olaraq müvafiq tədbirlər həyata uyğun proseslərin tənzimlənməsi ilə bərabər, bu sahədə keçirir. Bu günə kimi əcnəbilərin hüquqi vəziyyəti, miqrasiya olan qanunvericiliyin tələblərinə əməl olunmasına dövlət sahəsində qanunvericiliyin tələbləri ilə bağlı respublikanın nəzarətini həyata keçirir. Ölkəyə gələn əcnəbilərin bir regionlarında, ölkənin ali və digər təhsil ocaqlarında mütəmadi hissəsi qanunvericiliyə uyğun fəaliyyət göstərməməyə olaraq maarifləndirmə tədbirləri həyata keçirilmiş, Azərbaycan çalışırlar. Əməkçi miqrantlarla olan əsas problem onların Respublikasındakı diplomatik nümayəndəliklər, bir sıra özəl leqallaşdırılmasının təşkil edilməsindən ibarətdir. Bu sektor nümayəndələri ilə Azərbaycan Respublikası Dövlət baxımda02n DMX tərəfindən mütəmadi olaraq yoxlamalar Miqrasiya Xidmətinin rəhbər heyətinin görüşləritəşkil edilmiş, keçirilir və qeyri-leqal əməkçi miqrantlar aşkar edilərək bukletlər hazırlanmışdır. Həmçinin filmlər və video çarxlar qanunvericiliyə uyğun rəsmiləşdirilir. hazırlanaraq nümayiş etdirilir. Vətəndaşların, əcnəbilərin və Bundan əlavə olaraq qeyd etmək lazımdır ki, iş icazəsi almaq vətəndaşlığı olmayan şəxslərin maarifləndirilməsi məqsədi ilə üçün edilmiş müraciətlərin təhlili zamanı əməkçi miqrantların “Vətəndaşlıq Haqqında”, “Beynəlxalq Miqrant Günü”, “Dövlət mütəxəssislik dərəcəsinin və təhsil səviyyəsinin aşağı olması, Miqrasiya Xidmətinin 6 illik yubileyi”, “Azərbaycan Respublikası həmçinin iddia edilən vəzifəyə uyğun iş təcrübəsinin olmaması Dövlət Miqrasiya Xidməti təqdim edir”, “Əcnəbilərin nəzərinə” hallarına da rast gəlinir. adlı maarifləndirici və Ümummilli lider Heydər Əliyevin 90 illik yubileyinə həsr olunmuş filmlər hazırlanmışdır. Filmlər Xidmətin 2012-ci ildə əcnəbilərə və vətəndaşlığı olmayan şəxslərə rəsmi internet səhifəsində yerləşdirilmiş, televiziya kanallarında Azərbaycan Respublikasında haqqı ödənilən əmək fəaliyyəti işıqlandırılmışdır. Bundan başqa ölkəmizə gələn əcnəbilərin ilə məşğul olmaq üçün Dövlət Miqrasiya Xidməti tərəfindən və vətəndaşlığı olmayan şəxslərin olduğu yer üzrə qeydiyyata Azərbaycan Respublikası Nazirlər Kabinetinin müvafiq alınması ilə bağlı ölkənin miqrasiya qanunvericiliyi barədə qərarına uyğun olaraq 11970 iş yeri üzrə, cari ilin ilk 6 ayı tam, dolğun və ətraflı məlumat əldə etmələri üçün süjetlər ərzində isə 6521 iş yeri üzrə icazə verilmişdir. hazırlanaraq, televiziya kanallarında yayımlanması təşkil Azərbaycan Respublikasının mövcud qanunvericiliyinə əsasən edilmişdir. Bu isə əcnəbilərin. Eləcə də bu ilin avqust ayının hər il növbəti il üzrə ölkəyə gətiriləcək əməkçi miqrantların son 1-dən qüvvəyə minən Azərbaycan Respublikası Miqrasiya həddi – illik kvotası Azərbaycan Respublikası Nazirlər Kabineti Məcəlləsi ilə bağlı bir sıra mühüm maarifləndirici tədbirlər tərəfindən təyin edilir. Qaydalara əsasən ölkədə fəaliyyət həyata keçirilmişdir. Bu məqsədlə televiziya kanallarında Dövlət göstərən nisbətən iri sahibkarlıq subyektlərinə növbəti il üçün Miqrasiya Xidmətinin səlahiyyətli əməkdaşlarının müsahibələri ölkəyə gətirilməsi gözlənilən əcnəbilərin sayı barədə proqnoz yayımlanmış, “Respublika” qəzetində geniş məqalə dərc xarakterli məlumat üçün sorğular göndərilir və sorğuların edilmişdir. Əlavə olaraq, DMX-ya müraciət edən əcnəbilər üçün cavabları toplanılaraq Nazirlər Kabinetinə təqdim edilir. Qeyd miqrasiya sahəsində tətbiq edilən yeniliklərlə bağlı hazırlanan edək ki, cari il üçün əməkçi miqrantların illik kvotası 12000 slaydın mətnləri azərbaycan, rus, ingilis dillərində DMX-nın nəfərdən ibarətdir. Mərkəzi Aparatında olan Gözləmə zalında yerləşdirilmişdir. Maarifləndirmə tədbirləri regionlarda da həyata keçirilir. Keçirilən Hər hansı bir problemlə üzləşən əcnəbilər hara müraciət tədbirlərdə, mühazirələrdə Dövlət Miqrasiya Xidmətinin edə bilərlər? səlahiyyətli şəxsləri miqrasiya sahəsində tətbiq edilən yeniliklər Əcnəbilər və ya vətəndaşlığı olmayan şəxslər ölkədə barədə ictimaiyyətə geniş məlumat verirlər. olma, yaşama, işləmə qaydaları ilə əlaqədar Azərbaycan Bundan başqa, Dövlət Miqrasiya Xidməti tərəfindən “Əcnəbilər Respublikası Dövlət Miqrasiya Xidmətinin mərkəzi və regional və vətəndaşlığı olmayan şəxslərin əsas hüquq və vəzifələri” struktur qurumlarına müəyyən olunmuş qaydada müraciət adlı kitabça hazırlanmışdır. edə bilərlər. Əcnəbilər və ya vətəndaşlığı olmayan şəxslər Dövlət Miqrasiya Xidmətinin fəaliyyəti, gördüyü işlər barədə 3 müraciətlərini, suallarını 3 dildə (Azərbaycan, ingilis və rus) dildə - azərbaycan, rus və ingilis dillərində “Miqrasiya” jurnalı Xidmətin rəsmi internet səhifəsindəki (www.migration.gov.az) nəşr etdirilir. Jurnalda işıq üzü görən məqalələr və müsahibələr “Sual-cavab” və “Müraciətlər” bölmələrinə, eləcə də qurumun miqrasiya ilə bağlı yenilikləriəhatə edir. elektron ünvanına göndərmək imkanınamalikdirlər. Həmçinin əcnəbilər və ya vətəndaşlığı olmayan şəxslər 919 qaynar Miqrasiya sahəsində beynəlxalq təcrübənin öyrənilməsi, xəttivasitəsilə azərbaycan, rus və ingilis dillərində Miqrasiya miqrasiya proseslərinin idarəolunması və kadr hazırlığı Məlumat Mərkəzinə müraciət etməklə, onları maraqlandıran səviyyəsinin yüksəldilməsi məqsədilə Dövlət Miqrasiya məlumatları əldə edə bilərlər. Xidmətinin tədris proqramları hazırlanmışdır. Həmin proqramlara əsasən mütəmadi olaraq seminarlar keçirilir, Ümumiyyətlə, Azərbaycanda vətəndaşlar və əcnəbilərlə hər mühazirələr söylənilir, Dövlət Miqrasiya Xidmətinə yeni hansı maarifləndirmə işləri aparılırmı? Bununla əlaqədar işə qəbul olunan işçilərin peşə hazırlığının təmin edilməsi Dövlət Miqrasiya Xidmətinin əməkdaşları üçün hansı ixtisas məqsədilə təlim-tədris kursları təşkil edilir. artırma təlimləri keçirilir? Dövlət Miqrasiya Xidməti Avropa İttifaqının yardım alətlərindən
21 in focus
fəal istifadə edir. Belə ki, Avropaya inteqrasiya istiqamətində artırılması” fakültəsində “Miqrasiya proseslərinin dövlət səylərin daha da fəallaşdırılması məqsədilə Azərbaycan tənzimlənməsi” istiqaməti üzrə qısamüddətli ixtisasartırma Respublikası Dövlət Miqrasiya Xidməti 2009-cu ildən Avropa kursunun proqramının da əsas məqsədi bu sahədə həyata İttifaqının institusional quruculuq aləti olan Tvinninq layihəsində keçirilən islahatlar, beynəlxalq təcrübənin öyrənilməsi və iştirak edir. 2 illik layihə olan Tvinninqin icrasına 2013-cü ilin tətbiqi ilə bağlı dinləyicilərə yeni biliklərin verilməsi olmuşdur. 14 yanvar tarixindən başlanılmış və 2015-ci ilin 14 yanvarına Nəzərinizə çatdırım ki, Dövlət Miqrasiya Xidmətinin kimi davam etməsi nəzərdə tutulur. Bu müddət ərzində 46 təşəbbüsü, Avropa İttifaqının və Miqrasiya Siyasətinin İnkişafı seminar və təlimintəşkil olunmasıplanlaşdırılır. Layihənin üzrə Beynəlxalq Mərkəzin (MSİBM) dəstəyi ilə Miqrasiya həyata keçirilməsində məqsəd miqrasiya qanunvericiliyinin Sahəsində Avropa İttifaqı Ekspertizası (MİEUX) Proqramı Avropa İttifaqı qanunvericiliyinə uyğunlaşdırılması, sistematik çərçivəsində “Readmissiya və qayıdışa dəstək” mövzusunda təhlil yolu ilə qeyri-qanuni miqrasiyanın qarşısının alınması, keçirilən seminar, eləcə də Niderland Krallığının Azərbaycan təlim vasitəsilə peşəkar bacarıqların artırılması, eləcə də Respublikasındakı səfirliyinin təşəbbüsü və bu ölkədən dəvət məlumatlandırma və maarifləndirmə kampani-yalarının edilən ekspertlərin iştirakı ilə Azərbaycan Respublikası Dövlət gücləndirilməsidir. Tvinninq layihəsi Avropa İttifaqına üzv Miqrasiya Xidmətinin Təlim-Tədris mərkəzində “Sənədlərin dövlətlər və Benefisiar dövlətlər arasında əməkdaşlıq yoxlanılmasına” dair keçirilən treninq-seminar gənc kadrların fəaliyyətinin genişləndirilməsi üçün dövlət sektoru səviyyəsində yetişdirilməsinə xidmət edən addımların tərkib hissəsidir. praktik təcrübə mübadiləsini təmin edir. MİEUX proqramı çərçivəsində reallaşdırılan bir sıra tədbirlər zamanı müxtəlif mövzuları - qloballaşan dünyanın ən aktual Həmçinin, bu ilin yanvar ayında Beynəlxalq Miqrasiya Təşkilatı problemlərindən olan miqrasiya və mobillik, insanların ilə birgə “Cənubi Qafqaz ölkələrində səmərəli readmissiya təhlükəsiz yerləşdirilməsi, sığınacaq axtaran şəxslərin idarəçiliyinin yaradılmasının dəstəklənməsi” layihəsinin icrasına himayəsi, qanunsuz miqrantların saxlanılması mərkəzlərinin start verilmişdir. Mütəmadi olaraq beynəlxalq standartlara fəaliyyəti - əhatə edən tədbirlər təşkil edilmişdir. Proqram uyğun ən müasir tədris planları və tədris texnologiyaları çərçivəsində miqrasiya orqanları əməkdaşları Avropa İttifaqı əsasında təşkil edilən layihələrin, seminarların əsas məqsədi ölkələrinə təlim səfərlərində olmuşdur. miqrasiya sahəsində yüksək peşə hazırlığına malik gənclər yetişdirməkdir. Azərbaycan Respublikası Prezidenti yanında Avropa İttifaqının, BMqT, BƏT, BMT, BMT QAK kimi miqrasiya Dövlət İdarəçilik Akademiyasının “Rəhbər kadrların ixtisasının sahəsində fəaliyyət göstərən beynəlxalq təşkilatların
22 Issue 18 in focus
həyata keçirdiyi ixtisasartırma təlim və kurslarında Xidmət əlverişli mühitin yaranmasına səbəb olan əsas amillərdən biridir. əməkdaşlarının iştirakı təmin edilir. Dövlət Miqrasiya Xidməti də öz növbəsindəyürüdülən bu siyasəti rəhbər tutaraq biznes assosasiyaları və ümumilikdə özəl sektorla Bu gün Azərbaycanda “Elektron Hökumət” konsepsiyası münasibətlərinə daim əhəmiyyət vermiş və səmərəli əməkdaşlığın çərçivəsində müxtəlif xidmətlər göstərilir, onların bir qismi davam etdirilməsi üçün öz üzərinə düşən işlərin öhdəsindən vətəndaşlar üçün, qalanı isə biznes sektoru üçündür. layiqincə gəlmişdir. Bunun bariz nümunəsi kimi Amerika Ticarət Dövlət Miqrasiya Xidməti hansı xidmətləri elektron şəkildə Palatası, ATİB, TÜSİAB və başqa biznes asossasiyaları ilə Dövlət həyata keçirir? Miqrasiya Xidməti arasında olan mövcud dialoqu göstərmək olar. “Dövlət orqanlarının elektron xidmətlər göstərməsinin təşkili sahəsində bəzi tədbirlər haqqında” Azərbaycan Respublikası Dünyanın ən böyük biznes asossasiyası olan ABŞ Ticarət Prezidentinin 23 may 2011-ci il tarixli 429 nömrəli Fərmanının Palatasına beynəlxalq AMCHAM-lar və biznes müəssisələri icrası məqsədilə Azərbaycan Respublikasının Dövlət Miqrasiya daxildir. AMCHAM Azərbaycan ABŞ Ticarət Palatasının Xidməti tərəfindən elektron xidmətlərin göstərilməsində 10 tamhüquqlu üzvüdür. AMCHAM Azərbaycan ölkəmizdə adda xidmət fəaliyyətdədir. Hüquqi və ya fiziki şəxslər tərəfindən biznes mühitinin təkmilləşdirilməsinə konsultativdəstək əcnəbi və ya vətəndaşlığı olmayan şəxslərin əmək fəaliyyəti göstərir.Qeyd etdiyim kimi, Amerika Ticarət Palatası ilə Dövlət ilə məşğul olmaları üçün “İş icazəsi”nin alınması, əcnəbi və Miqrasiya Xidməti arasında əməkdaşlığa mütəmadi olaraq ya vətəndaşlığı olmayan şəxslər tərəfindən müvəqqəti olma keçirilən ikitərəfli görüşləri, məlumatlandırma seminarlarını müddətinin uzadılması, müvəqqəti və daimi yaşama icazəsinin misal göstərmək mümkündür. 2009-cu ildən başlayaraq alınması, Azərbaycan Respublikası vətəndaşlığından çıxma, Amerika Ticarət Palatasının təşkil etdiyi tədbirlərdə Dövlət xitam, bərpa və Miqrasiya orqanlarında qulluğa qəbul olunma Miqrasiya Xidmətinin nümayəndə heyəti iştirak etmiş, üçün müraciətlər elektron şəkildə edilə bilər. Həmçinin rüsum həmçinin Dövlət Miqrasiya Xidmətinin rəhbərliyi tərəfindən və cərimələrin onlayn qaydada ödənilməsi üçün Xidmətin AMCHAMnümayəndələri qəbul olunmuş, fikir mübadilələri rəsmi internet səhifəsində xüsusi elektron xidmət bölməsi aparılmışdır. Azərbaycandakı Amerika Ticarət Palatası ilə yaradılmış və istifadəyə verilmişdir. DMX arasında əməkdaşlıq 2012-2013-cü illərdə daha da genişlənmişdir. Firudin müəllim, icazənizlə söhbətimizin əvvəlinə qayıtmaq Ümidvaram ki, qurumlarımız arasında mövcud münasibətlər istərdim. Qeyd etdiyiniz qanunvericiliyə son dəyişikliklərin bu əməkdaşlığın daha da dərinləşməsinə xidmət edəcəkdir. edilməsində vətəndaş cəmiyyəti və biznes asossasiyalarının rolu haqqında fikirlərinizi bölüşə bilərdinizmi? Cənab Rəis, müsahibə üçün təşəkkür edirik. Miqrasiya Məcəlləsi qəbul edilməmişdən öncə müntəzəm olaraq miqrantların mövcud problemləri öyrənilmiş, təhlil edilmiş Qonağımızın qısa tərcümeyi-halı: və əldə olunmuş nəticələr Məcəllədə nəzərə alınmışdır. Əlavə Firudin Hilal oğlu Nəbiyev 1988-ci ildə İvanovo şəhər Kimya olaraq, beynəlxalq təşkilatların və biznes asossasiyalarının Texnologiya İnstitutunu, 2009-cu ildə Bakı Dövlət Universitetinin (BMqT, BMT QAK, Amerika Ticarət Palatası) iştirakı ilə hüquq fakültəsini bitirmişdir. 1988-ci ilin avqust ayından dəyirmi masalar təşkil edilmiş və müzakirələr aparılmışdır. Azərbaycan Respublikasının Yüngül Sənaye Nazirliyinin Beynəlxalq Miqrasiya Təşkilatının və Birləşmiş Millətlər müəssisələrində müxtəlif vəzifələrdə çalışmışdır. 24 sentyabr Təşkilatının Qaçqınlar üzrə Ali Komissarlığının Azərbaycan 2001-ci il tarixdə Azərbaycan Respublikası Milli Təhlükəsizlik Respublikasındakı nümayəndəlikləri və AmerikaTicarət Nazirliyinin Sərhəd Qoşunları Baş İdarəsinin rəis müavini Palatası tərəfindən Miqrasiya Məcəlləsinin layihəsinə aid vəzifəsinə təyin edilmişdir. 1 iyul 2003-cü il tarixdə Azərbaycan konkret təkliflər təqdim edilmişdir ki, onların da bir çoxu Respublikası Prezidentinin 1286 saylı Sərəncamı ilə Dövlət qanunvericiliyin tələblərinə əsasən nəzərə alınaraq Məcəlləyə Sərhəd Xidməti rəisinin maddi-texniki təminat üzrə müavini daxil edilmişdir. Bu da miqrasiya proseslərinin iştirakçıları - Maddi-Texniki Təminat Baş İdarəsinin rəisi vəzifəsinə təyin olan vətəndaş cəmiyyətlərinin və biznes asossasiyalarının edilmişdir. 15 avqust 2006-cı il tarixdə Azərbaycan Respublikası qanunvericiliyin təkmilləşdirilməsi işində bilavasitə iştirakının Prezidentinin 1613 saylı Sərəncamı ilə general-mayor ali əyani sübutudur. Miqrasiya proseslərinin birbaşa iştirakçısı olan hərbi rütbəsinə layiq görülmüşdür. 16 yanvar 2008-ci il tarixdə bu iki tərəfin praktiki məsələlərdə geniş təcrübəsini nəzərə alan Azərbaycan Respublikası Prezidentinin 2627 saylı Sərəncamı Dövlət Miqrasiya Xidməti qanunvericiliyin təkmilləşdirilməsi və ilə Dövlət Sərhəd Xidməti rəisinin 1-ci müavini –Sərhəd həmçinin miqrasiya proseslərinin tənzimlənməsi işində onlarla Qoşunlarının Baş Qərargah rəisi vəzifəsinə təyin edilmişdir. 13 daim ikitərəfli fikir mübadilələri aparır. fevral 2012-ci il tarixdə Azərbaycan Respublikası Prezidentinin 2050 saylı Sərəncamı ilə Azərbaycan Respublikası Dövlət Dövlət Miqrasiya Xidmətinin biznes asossasiyaları ilə Miqrasiya Xidmətinin rəisi vəzifəsinə təyin edilmişdir. 6 mart və xüsusən Amerika Ticarət Palatası ilə bundan sonrakı 2012-ci il tarixdə Azərbaycan Respublikası Prezidentinin əməkdaşlığını necə görmək istərdiniz? 2078 saylı Sərəncamı ilə III dərəcəli dövlət miqrasiya xidməti Azərbaycanda dövlət sektoru ilə özəl sektor arasında olan mövcud müşaviri ali xüsusi rütbəsi verilmişdir. Xidmət etdiyi dövrdə əlaqələr əməkdaşlığın gələcəkdə də yüksələn xətt üzrə inkişaf 6 medal, 2 orden – Azərbaycan Respublikası Prezidentinin edəcəyinə ümidləri daha da artırır. Ölkə rəhbərliyinin yürütdüyü müvafiq Sərəncamları ilə III dərəcəli “Vətənə xidmətə görə” və məqsədyönlü və çoxşaxəli siyasət sözügedən əməkdaşlıq üçün “Azərbaycan bayrağı” ordenləri ilə təltif olunmuşdur.
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The New Migration Code: Improvements and Challenges Recently, Azerbaijan enacted a new Migration Code (the “Code”), which entered into force on 1 August 2013. Despites certain gaps that remain in the Code, overall it substantially improves and clarifies a number of issues that previously gave rise to confusion. While it would be impractical to address all the relevant issues in a single article, below is our attempt to examine some of the main changes introduced by the Code.
the grounds for imposing the same. Ilgar Mehti Managing Partner EKVITA Baku, Azerbaijan In many respects, the Code has consolidated multiple rules and procedures into a single legislative instrument by codifying established practices or introducing new rules. Previously, certain procedures (such as online registration at the place of temporary residence, for instance) were not properly documented and businesses would mostly rely on information General from other sources such as the SMS website. The Code reinforces the role of the State Migration Services That said, certain key aspects of the migration policy are still (SMS) in determining and regulating the State policy on not sufficiently clear. For example, the Code does not properly migration. It introduces certain new sanctions and clarifies describe the scope of or the process for conducting migration
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audits or the appeal processes. In practice, such audits are conducted without any advance notice. The duration of such audits is typically not restricted, despite likely disruption to business operation. The scope of the audit can often be too broad, covering related practices, mostly, employment and contractual, or, to a lesser degree, salary and taxation of expats.
While surprise audits are neither prohibited nor uncommon in Azerbaijani law and practice (for instance, labor audits may also conducted unannounced), it would still be more practical to limit both their scope and duration. Although it seems appropriate that the scope of migration audits will become more restricted, it is likely that such audits will always be conducted without any advance notification from SMS.
Scope
The Code regulates the following main issues:
• Requirements for obtaining visas and visa types; • The procedures, documentation and timeline for issuing residence permits and work permits; • Rules and restrictions for entering and leaving Azerbaijan; • Sanctions for violation of migration policy.
It is of particular practical benefit that as well as work permit • Work visa: issued based on LOI for short-term secondment and residence permit procedures, rules pertaining to visa of up to 90 days; processing are also included under this new Code. Previously, • Other types of visas such as Tourist visa, Transit visa, visa procedures were scattered across multiple (and not Official visa etc. necessarily consistent) legislative acts, which made practical implementation difficult. In line with the Azerbaijan’s policy towards the simplification of processes affecting tourism, several visa processing issues Terminology have been simplified. However, the simplification is mostly for tourist visas, while visas for business purposes still require A particular advantage of the new Code – and indeed one LOIs. that is often underestimated - is the introduction of new terminology. The Code simplifies certain terminology Visas may be applied for in person or via a representative, problems thereby removing some of the ambiguities of the and may also be processed online. Also in certain cases, pre-Code implementation stage. Thus, the Code expressly the Code allows travellers to obtain visas upon arrival at the defines such important notions as “temporary stay”, “a family airport. The typical processing time for visas is 15 calendar member”, “close relative” etc. Also, the Code now uses the days (2 working days for emergency cases such as medical term “work permit” as opposed to a former counter-intuitive treatment). Simplified e-visas (issued by email) for tourists notion of “individual permit” – a clarification more obvious in may be processed within 10 days. the Azerbaijani text. Visas extension procedures require that application be made Visas no later than 3 days prior to the expiry of the terms of the existing visa. Extensions are normally granted for a period of The Code defines several visa categories, allowing sufficient up to 60 days. Again, electronic submission is allowed by law flexibility to both business and leisure travelers: even though certain procedural aspects of e-application have yet to be developed. • Single entry visa: issued for a period of up to 90 days; • Multiple entry visa: may be valid for up to 2 years for a A particular difficulty may arise in justifying the extension of duration of stay specified in the visa; a business visa. The Code provides that “outstanding work” • Business visa: issued on the basis of a letter of invitation may be a ground for extension if “properly substantiated.” (LOI) by a person or entity based in Azerbaijan with a The State officials often hold a view that if the duration of a purpose to establish “business ties” – up to 180 days; business traveller’s stay exceeds 90 days, then s/he should
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set of recommendations prepared jointly by AMCHAM and Ekvita. The only addition under the Code is that secondment should be only for those business purposes which are defined by a special decree of the Cabinet of Ministers.1
Likewise, as under the old rules, the new Code exempts directors and deputy directors of branches and representative offices of foreign companies. During the deliberations on the Bill of the Migration Code, we witnessed an interesting development. The initial text of the Code limited the total number of deputies exempted from a work permit requirement to 3. This wording was not taking into account the interests of large foreign companies employing more than 3 deputies for their Azerbaijan office (mostly, foreign service companies in the oil and gas industry). apply for a work permit instead of a visa extension, unless the Following the recommendations from AMCAHM and Ekvita inviting party provides sufficient proof that the visit is indeed a this restriction was also removed. one-off case. As under the previous law, work permit applications are Due to lack of clear understanding on this important issue, considered by the SMS within 20 days. A routine yet often businesses run a substantial risk by allowing a person to important requirement, often overlooked, is the notification stay in the country without a visa extension. in case of any change in the identity documents of a foreign employee or other similar changes. The employing Work Permit company should also inform the SMS about early termination of the employment agreement, which is again The Code provides a more detailed procedure on issuing not often exercised in practice. work permits. Grounds for refusing work permits are clearly described. The main grounds are (i) exceeding migration Yet another rule that is often ignored in practice is the quota; (ii) availability of local workforce for the position requirement to reapply in the event of a change of job title. for which a foreign migrant is applying; and (iii) failure The State has a vested interest in regulating the labor marker to demonstrate that the foreign applicant possesses the and the purpose migration policy is exactly that. When a requisite skills. particular foreign employee changes his/her job title, even if this happens within the same company, which is often A useful novelty of the Code is the ability to apply for a work the case, the employing entity should go through the same permit while the person is still outside Azerbaijan. This, of application process to justify suitability of a foreign migrant course, would require the employing entity – as applications for that specific job. Otherwise, the employer could be held for work permits are to be made by the company, not the liable for hiring foreign migrant without a work permit, even individuals themselves – to plan sufficiently in advance if the person’s work permit for a previous position was still of each application. On the other hand, it fits perfectly with valid. the requirements of related labor legislation: employment agreements with foreign migrants may be concluded only after Applications for extension are to be made no later than obtaining a work permit, when applicable – a requirement often 30 days prior to the expiry day of the existing work permit. ignored by many companies, thereby giving rise to significant Unfortunately, the Code still requires the submission of the exposure. same set of documents when re-applying for extension, which creates unnecessary paperwork (e.g. diplomas, marriage In line with the previously established law and practice, short- certificates etc would need to be provided again even if they term business visitors (the so-called, secondees) are exempt were submitted during the initial application). from a work permit requirement if the duration of their stay does not exceed 90 days in the aggregate in any calendar Under the old rules, a cumulative maximum duration of year. a single work permit was five consecutive years (i.e. up to 1 year during the first application plus a maximum of 4 Exemption for short-term secondees also existed under extensions of up to 1 year each). Extension beyond this term the previous law. However, the new Code clarifies that was possible only if a foreign employee would spend a year the 90-days are calculated cumulatively, which was a outside of Azerbaijan after the expiration of a cumulative useful amendment introduced by the SMS based on the five-year term. The Code removes this restriction implicitly:
1 This Decree has yet to be issued.
26 Issue 18 there is no any stipulated time limit on A foreigner may also be denied entry for the total number of extensions allowed. 5 years if s/he breaches the declared purpose of visit, submits false information, Residence Permit commits 2 or more administrative violations of migration rules, along with Some significant changes have also other cases set out in the Code. The been introduced to residence permits. rules are very strict. For example, a delay Some of these changes are: in registration after entering Azerbaijan is an administrative offence, which • Requirement to provide biometric may ultimately result in the denial of a fingerprints for applicants above 15 residence permit if repeated twice. years of age (even though as of the date of this article this requirement Conclusion is not being implemented pending, perhaps, installation of the necessary In general, as stated above, the Code equipment); strengthens the applicable rules in the area of migration policy. While • Removal of the time limit on total certain requirements may appear too number of extensions allowed; stringent, the practice shows that full • Introduction of new or clarifying compliance over a long term period is existing grounds for granting a achievable if the standard routines are residence permit; followed in a timely manner. • Introduction of new grounds for This, of course, requires that a person refusal and/or cancellation of a dealing with migration issues needs to residence permit. be fully aware of all possible pitfalls. A foreigner who invests at least 500,000 As a matter of good corporate policy, AZN in Azerbaijan’s economy is now businesses must assign a single entitled to obtain a residence permit for up accountable person who should to 3 years. This temporary permit may be maintain a proper “calendar” to keep renewed for up to 3 years. track of deadlines. A proper document Similarly, a foreigner who has acquired management is also key in ensuring full a property in Azerbaijan valued at compliance during the application stage 100,000 AZN or more, as well as those and any possible audits. who have the same amount deposited in Azerbaijani banks, are also entitled to a Author’s short bio residence permit. Ilgar Mehti is the Managing Partner of Ekvita with more than 10 years Finally, as a novelty designed to of professional experience both stimulate the local economy, the Code in business and as a lawyer. He provides that a foreigner who creates practiced law in the office of a major new jobs for Azerbaijani citizens is also international law firm as well as held entitled to a residence permit. This rule a position as an in-house counsel in requires that at least 5 full time or 10 major multinational energy company. part time jobs must be created and at Areas of his practice are: Energy Law least 80% of such jobs must be held by & Practice, Infrastructure Projects, Azerbaijani citizens. Corporate, Employment and Taxation. Mr. Mehti is a holder of Bachelor and One of the new restrictions, which will Master Degrees in Law from Baku significantly impact family members of State University, as well as LL.M. foreign migrants as well as so-called Degree from Northwestern University non-operating (nominal) directors, Law School, USA. He also holds stipulates that foreigners who spend Certificate in Business Administration more than 90 days during any 180 days from IE Business School, Spain and outside of Azerbaijan may lose their Chartered Institute of Purchasing & residence permits. Supply, UK. in focus
How competitive is Azerbaijan’s travel and tourism industry?
growing economic sector, its geography and demography is Yevgeniya Hajiyeva also broadening and diversifying intensely. Audit manager
Arzu Jafarli Over the last couple of years, the World Tourism Organization Business development (UNWTO) has reported a significant expansion of the tourism specialist industry1. According to an annual survey of economic impact, Deloitte Azerbaijan despite the very complex and tumultuous economic situation in 2012-2013, the global GDP of the travel and tourism sector Travel and tourism (T&T) continues to be one of the most saw a significant increase last year, which is projected to critical sectors for economic development and for sustaining repeat itself in 20132. International travel, an integral part of employment all over the world, and particularly in Azerbaijan. the T&T sector, is forecast to continue to increase in 2013 The role of tourism in economic development is indisputable. and provide a boost to the overall development of the T&T Many scholars, as well as those involved in hospitality, tourism industry. This trend is primarily driven by the increase in and leisure business, agree that tourism has a positive impact demand from developing countries and, to a lesser extent, on the country’s production volume, average gross income and developed economies, although most international travel and employment rate. With tourism becoming the world’s fastest tourism reports forecast that the T&T figures for developed
1 UNWTO Tourism Highlights, 2012 Edition. 2 World Travel and Tourism Council (2013). Economic Impact of Travel & Tourism 2013 Annual Update
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countries will become more resilient and sustainable in 2013 global rankings of the 140 economies based on 75 different and beyond. Overall, tourism as a sector of the economy will indicators across 14 key pillars of T&T competitiveness, which remain a promising engine for greater economic development are listed in the chart below: and sustainable growth across a broad geographic spectrum, with a particular focus on strengthening the position of the Figure 1: Travel & Tourism competitiveness and change drivers developing world.
This global trend is having a positive effect on the tourism profile of Azerbaijan, whose tourism industry has made significant developmental progress in recent years, experiencing considerable growth in 2007-2011, when the number of foreign tourists visiting Azerbaijan increased from about 600,000 to over 1.6 million. According to Nazim Samadov, Azerbaijan’s Deputy Minister of Culture and Tourism, nearly 2.5 million tourists visited the country in 20123. During the period of 2007- 2011, the amount of income received by Azerbaijan from international tourism increased from around USD 200 million to USD 1.3 billion. The estimated direct contribution of T&T to the country’s national GDP in 2012 was over USD 1.1 billion4. For the purposes of comparison, the World Bank estimated that Azerbaijan’s total GDP in 2012 was USD 68.7 billion5. All of this data suggests that Azerbaijan has made considerable progress in terms of tourism development in recent years. Source: Booz & Company. However, as everything is relative, the current state of tourism 1.2: How to Succeed as a Tourism Destination in a Volatile World 44 | The Travel & Tourism Competitiveness Report 2013 development in the country can be also analyzed from various standpoints to reflect the comparative advantages and A combination of positive scores in each pillar creates a disadvantages of the travel and tourism sector in Azerbaijan. strong T&T profile for selected economies. However, in In order to get a better understanding of the strengths and reality, the T&T profile of world economies is imperfect. In weaknesses of the T&T sector in the country, and to see an ideal scenario, the T&T Competitiveness scores of the where Azerbaijan stands in terms of global T&T rankings, countries included in the survey should reach their peak in this article will reflect on the key findings of the 2013 Travel & each of the fourteen pillars, as over the years each country Tourism Competitiveness Report. This report is the result of should work to improve in the areas that appear weaker in the joint efforts of the World Economic Forum (WEF), Booz and the index while maintaining their competitiveness in areas Company, Deloitte, the International Air Transport Association that appear strong. (IATA), the International Union for Conservation of Nature The 2013 Competitiveness Report details our findings (IUCN), the World Tourism Organization (UNWTO) and the regarding how well each country has succeeded in meeting World Travel & Tourism Council (WTTC). The report conveys this fourteen-pillar standard and where in general these insightful information on current attitudes from the T&T sector countries stand in relation to each other. and provides an in-depth analysis of the T&T competitiveness of economies around the world. The findings of the report Comparative view of Azerbaijan T&T competitiveness index are based on the T&T Competitiveness Index (“the Index”). to other countries, by score (1-7) The Index is aimed at measuring the factors and policies that help boost the attractiveness of the T&T industry in different countries, making the hospitality sector more competitive and sustainable, both within the national markets and in what is 4,9 Business environment and 3,5 4,1 infrastructure perceived as the international image of national economies. 3,6 3,3 The study of global T&T competitiveness was first introduced T&T regulatory framework some seven years ago by the initiative of the WEF, and to 4,6 5,4 4,4 4,9 5,2 this day serves as a useful platform for policy and practice T&T human, cultural, and natural resources dialogues on sustainable T&T development. This year’s report 4,6 is about reducing barriers to economic growth and job creation. 3,7 3,6 3,7 4,3
It entails the collection of data on the current state of the T&T Egypt Azerbaijan Georgia Turkey Cyprus environment in 140 countries around the globe, and provides
4 Tourist inflow to Azerbaijan from Europe and East Asia increases – Azernews (15 March 2013) http://www.azernews.az/business/51007.html 5 Tourism Satellite Accounting Research (2012). World Travel & Tourism Council (WTTC) 6 World Development Indicators database, World Bank. Retrieved from the database on 23 October 2013
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The Report showed that Azerbaijan has improved its position economic development at all levels, and with the emerging in the overall ranking, moving up to 78th place (from 83rd in middle-class aspiring to travel, there is a growing need for 2011). The report also indicated that Azerbaijan is one point more international two- and three-star hotels, which provide ahead of Armenia and one point behind Albania. The relatively a decent level of security and trust to hotel networks with stronger T&T reputations of Turkey and Cyprus, as well as fewer facilities and a lower level of luxury. the attractive prices in neighboring Georgia, create quite • High level of safety and security: The relatively low complicated conditions for the T&T sector in Azerbaijan. number of road traffic accidents per capita makes Azerbaijan more attractive to tourists. How attractive is Azerbaijan as a travel • Policy rules and regulations: The relatively low amounts of time and money required to start a business in Azerbaijan destination? make the country an attractive proposition to T&T operators. On the other hand, there is an acute need to revise and In terms of the key strengths of the Azerbaijani tourism simplify the visa requirements for foreign tourists, which environment, the document emphasized the country’s good could further improve the position of Azerbaijan on the showing in some (but not all) categories under the following global tourism and hospitality market. service groups: Although developing the T&T sector provides many benefits, • Health and hygiene: A strong position in this category numerous obstacles at the national level continue to hinder is reached mainly through the relatively high number of further development in this sector of industry. Among major hospital beds and employed medical graduates per capita areas for development in the T&T sector of Azerbaijan in the country mentioned in the report, we would like to highlight the following: • High prioritization of T&T: Positive results in this area are mainly based on the amount of government attention paid • Poor tourism infrastructure: The lack of seven major car to it (availability and comprehensiveness of data) and the rental companies that operate in many other countries6 and the share of budgeted expenses allocated to it. low number of hotel rooms per capita7 create a disadvantage • Ground transport infrastructure: The relatively for Azerbaijan. The assessment of this category does not high coverage of roads by total area of the country include such crucial criteria for the tourism industry as the is an advantage for Azerbaijan. We should note availability of canteens, pedestrian areas, tourist information that assessment in this category does not take into centers, English language signs, professional guides, etc. account the availability of updated navigator maps, • The lack of attention paid to cultural and creative comprehensive road signs in English or maps of city industry exports: Additional focus on the souvenir transport networks. industry and on strengthening cooperation between • Price competitiveness: The effects of fuel prices and individual producers of cultural and creative goods and taxation place Azerbaijan in a good position, while airport industrial businesses and service providers would help charges and hotel prices negatively affect the country’s to promote the country’s cultural values more effectively profile in this category. The entry of international four- and attract more tourists to Azerbaijan. Authentic cultural star hotels onto the Azerbaijani tourism market will have artifacts and handicrafts, such as carpeting, weaving, a strong impact on the improved price competitiveness smithing and jewellery-making could be promoted and of Azerbaijan. As hotels play a critical role in the overall internationalized by many means, including (but not limited
6 The Travel and Tourism Competitiveness Report 2013. World Economic Forum 7 The Travel and Tourism Competitiveness Report 2013. World Economic Forum
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to) open workshops and fairs, providing souvenirs for sale. • Lack of international fairs and exhibitions and limited capacity of sport stadiums per capita8;9: The overall number of international fairs, business, cultural, art and many different exhibitions held in Azerbaijan is significantly low. Azerbaijan ranks 119th in the WEF’s report, one of the worst showings in this category of the T&T 2013 rankings. • Policy rules and regulations: Azerbaijan’s issues here relate mainly to the existing entry barriers in terms of visa regulations and infrastructure and the need to facilitate investment and cross-border operations more effectively, shown by the low prevalence of foreign-owned companies in the country and the relatively poor protection of property rights, including financial assets10. • Air transport infrastructure: Azerbaijan has relatively high ticket taxes and airport charges, as well as poor coverage of international and domestic flights (in terms of the average number of scheduled flights per week)11;12.
In early 2013 Azerbaijan began a new practice of issuing electronic visas to foreign visitors, attracted a number of Short bios of authors: international exhibitions and fairs, and initiated the construction Yevgeniya Hajiyeva is an audit manager at Deloitte of a number of sport stadiums. Most importantly, Azerbaijan has Azerbaijan. Yevgeniya has been with Deloitte since 2004, stepped forward in its legal reforms and began to introduce new working for member firms in Kiev, Moscow and Baku and legislation with a direct impact on the country’s T&T sector. The servicing a significant number of production, finance and government has involved the UNWTO in its efforts to modify service companies. She has extensive experience in the the Law “On Tourism”. The UNWTO has further elaborated a application of International Financial Reporting Standards package of recommendations for Azerbaijan to improve its (IFRS), US Generally Accepted Accounting Principles (GAAP), tourism legislation and address inadequacies in the area of compliance frameworks and relevant legislation (Sarbox). tourism management. A new law on tourism is currently under She is a member of the Association of Chartered Certified consideration13. While these legislative initiatives are still in Accountants (UK). process, a new piece of legislation has recently come into effect. Her responsibilities include overall engagement management, identifying significant risks, advising on technical matters, and On 9 July 2013 the President of Azerbaijan signed a brand reviewing of audit documentation and financial statements. new Migration Code, which entails a number of new measures. The extent to which these measures are progressive will be Arzu Jafarli joined Deloitte in April 2013 as a business realized in the course of future assessments of the overall T&T development specialist. Prior to her career with Deloitte, she industry, based on day-to-day practice. worked as a project director at the Transparency International Azerbaijan Chapter and as an editor for IMPACT Azerbaijan The above actions, though somewhat detailed, are not all- magazine. Previously, she has worked for a number of encompassing and will require more consolidated efforts international organizations, such as the International Rescue from both public and private players in order to bring Committee Azerbaijan Program, the Organization for measurable results and more positive changes. Despite Security and Co-operation in Europe office in Baku, UNICEF increasing instability caused by global economic, political Headquarters in New York, NY, USA, and the Sanctuary for and environmental challenges, the T&T sector is expected Families in New York, NY, USA. Arzu received her MS degree to remain a significant driver of future economic growth, both from the Columbia University School of Social Work specializing worldwide and in Azerbaijan in particular. Policymakers who in Policy Practice and International Social Welfare in 2012. She are most tuned in to their countries’ most prominent assets minored in Business Administration at the Columbia University and are able to leverage them most effectively are best School of Continuing Education. Arzu earned her Bachelor’s positioned to turn risks of volatility into opportunities for long- degree in Political Sciences and International Relations from term stability14. The extent to which these consolidated efforts the Academy of Public Administration under the President of will prove effective and result in tangible success will become the Republic of Azerbaijan in 2001. clearer in the next WEF report.
8 Creative Economy Report (2012). United Nations Conference on Trade and Development (UNCTAD), Creative industry database. 9 Booz and Company, based on statistics obtained from Worldstadiums.com on World Stadiums http://www.worldstadiums.com/middle_east/countries/azerbaijan.shtml 10 Word Economic Forum, Executive Opinion Survey (2011-2012) 11 International Air Transport Association, SRS Analyzer (January 2011 – July 2011) 12 Word Economic Forum, Executive Opinion Survey (2011-2012)
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"Flying Blind": Advance Tax Ruling
Arif Guliyev, Tax Director, PricewaterhouseCoopers Azerbaijan
How many times did you have to fly blind on the tax implications of investments in projects — only to get entangled with the taxman later on over some arcane interpretation of the law?
Globally, the procedures for obtaining an Advance Tax Ruling (“ATR”) and concluding Advance Pricing Agreements (“APA”) have existed for many years in developed countries. These procedures are gradually becoming the law and practice in many Central and East Europe countries, including the CIS. For example, the Czech Republic, Poland and Romania implemented ATRs in 2006; Kazakhstan and Slovakia in 2009, Georgia in 2010, and Lithuania in 2012.
What are ATRs and APAs? An APA is an advance agreement to address a query to the tax authorities, and the tax authorities between a taxpayer and the tax authority on an appropriate are obliged to reply within 30 working days. transfer pricing methodology for certain transactions over a fixed period of time. ATR is a written statement sought by a taxpayer Every kind of tax ruling implies the exercise of interpretive activity from the tax authority about the tax implications of a transaction. by the tax administration. In general, an interpretation, even automatic or instantaneous, is always present to give meaning An advance ruling is designed to give the investor some certainty to a determined legal provision. A correct interpretation of a legal on the tax implications of a business proposal and head off tax provision, which may be extensive, restrictive, literal, functional, disputes and legal complications later on. The Azerbaijani Tax or systematic, should always offer a solution that is at least Code in many instances contains ambiguous language, which compatible with the wording of the law and the entire tax system. usually results in a number of possible interpretations. The fact is, by law, the tax authorities do not have enough Moreover, the arm’s length principle is difficult to apply due to room or flexibility for the interpretation of tax provisions. In the absence of benchmarking and scarcity of comparable transactions. early 2000’s, the Ministry of Taxes (namely, the Department for It is practically impossible to determine a single market price for Strategic Research and the Department of Services to Taxpayers) the transaction using credible data. In such situations, an ATR or issued a number of letters interpreting unclear provisions of the APA may help taxpayers to achieve some certainty, prevent tax Tax Code; however, this practice stopped several years ago. leakages, and avoid penalties or even criminal charges. For the past five or six years, the tax administration’s responses There are lots of provisions in the Tax Code which are open to queries by taxpayers have been very broad; in most cases to interpretation, such as the attribution of profits, (especially they merely repeat or refer to the very article of law that under turn-key construction projects) to Permanent requires interpretation or clarification. Moreover, the absence Establishments, Controlled Foreign Corporation rules, of specific procedures has led to several cases where the tax allocation of general administrative cost and overheads authorities changed their opinion on the issue. By law, even no from the head office, income determination under long term penalties should be applicable in such situations; the tax payer contracts, unincorporated joint venture, interaction between can still be forced to pay taxes based on a new interpretation Production Sharing Agreement and Tax Code regimes, and from the tax authorities. many other issues that require resolution. Following the 2013 amendments to the Tax Code, there was The 2013 Tax Code of Azerbaijan does not provide legal hope that implementation of a “partnership agreement” would be instruments or mechanisms for obtaining a ruling that is directed towards improvement of the ruling procedures. However, binding on the authorities. The taxpayer has the general right based on the available draft regulation on this issue, the sample
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and purpose of a partnership agreement would not be a ruling.
However, the good news is there are still some plans in the Ministry of Taxes to establish ATR and APA procedures. The legal form and wording these procedures will take, and how the taxpayers could benefit, remains uncertain.
So, what is the future of ATR and APA in Azerbaijan? Will taxpayers use ATRs and APAs? The global practice shows that there are several factors influencing a decision of the taxpayers to apply for ATR and APA.
One of those factors is the cost of application, including the cost of professional advisors paid to prepare a request and the fee paid to the Government. Some countries apply a fixed fee (e.g., EUR 400 in Czech Republic, EUR 2,300 or EUR 4,600 in Georgia), others charge the fee on the basis of the percentage of the transaction with a cap (e.g., 1% of the transaction but not more EUR 36,000 for multilateral ruling, as in Romania). Another factor is the waiting period. As ATRs and APAs usually regulate future transactions, the taxpayer has to wait until a formal ruling or agreement has been issued. In some teams should act as a tax court; countries the waiting period may take quite a long time (e.g., • The rulings should be binding only when the taxpayer up to 18 months in Poland). chooses to apply the ruling; • ATRs and APAs should be confidential and should not be Before applying for an ATR or APA, the taxpayer will need published or shared with other parties; to consider the likelihood of detection by the tax authorities • The period for issuance of ATR or APA should not exceed a and potential penalty cost in case the tax authorities disagree reasonable time (e.g., 90 days); with the taxpayer’s position. The taxpayer could make a • Application fees should be reasonable. business decision not to apply for an ATR or ATP since the disclosure of the transaction increases the risk of detection A new system of binding and reviewable rulings should be up to 100%. This aspect is difficult to predict, and therefore, created to promote certainty for taxpayers, and thereby reduce such disclosure will have always to be a business decision the risk. The new system should also capture the general by the taxpayer, weighing the potential costs and benefits of consensus that the two key objectives of the ruling system the application. are to provide certainty and to ensure fairness for taxpayers. These goals should be the reasons for the implementation So, how to reassure the taxpayer that the government- of a new ruling system and form the basis upon which the appointed ATR and APA teams are reputable, independent effectiveness of the tax system can be evaluated. and constructive? If the taxpayer has any doubt that the ATR or APA team will act fairly and independently from the tax Author’s biography administration, the chance of applying is quite low. Arif Guliyev, a tax expert with more 30 years of professional experience, joined PwC Azerbaijan in 1999. Arif has 21 Confidentiality of ATRs from the district tax offices is also an years experience in taxation, eight of which he served in the issue. Theoretically, an ATR should be binding only when the Azerbaijani State Tax Administration; for the remainder he has taxpayer chooses to apply the ruling. However, if a ruling that worked as a PwC Azerbaijan tax expert. has not been accepted by the taxpayer is available to district In the State Tax Administration, Arif was in charge of tax offices, the probability of inspection and risk of challenge negotiations of a number of tax treaties and drafting numerous during the tax audit increases dramatically. instructions related to the taxation regime for operations of foreign companies in Azerbaijan. Taking the above mentioned factors into account, and based After joining PwC in 1999, he continued his involvement on global practice, the following major aspects should be in the development of domestic tax legislation as a implemented in the predicted ATR and APA procedures to permanent member of working groups created by the make them more attractive and workable for taxpayers: Azerbaijani Government. Arif has also participated in a number of high-level negotiations of investment • ATR and APA teams should be independent from the projects held by foreign investors with the Government collecting tax authorities; of Azerbaijan, helping PwC’s clients to achieve the best • As part of the Azerbaijani court system, ATR and APA possible investment terms.
33 member contribution
Protecting the messenger the vital role of ‘whistle blowing’ in modern business
Farouk Mohamed, Managing Partner, Grant Thornton Azerbaijan
Corporate fraud and other business misconduct regularly hit the headlines worldwide; the CIS is not immune to such problems.
When a fraud incident occurs, it is invariably bad news for the business concerned. The effects can be widespread and damaging – the theft of cash, misappropriation of assets or the violation of sanctions are damaging for businesses. The reputation of a business that has been carefully nurtured for years or even decades may be undermined. The effects of the fraud or a backup story to explain their activities if someone does misconduct can affect the business but also regrettably customers, raise suspicions. Fraudsters will perhaps focus their fraud on employees and suppliers. Trust is lost, the brand becomes non-core activities, those that are less well understood or of associated with the fraud and bad news stories may spiral out of less interest to the owners. They may commit small frauds to control. Managers who were responsible for managing fraud risk start with so as to see what is possible. They often become may find themselves in the firing line for their failures and their jobs greedier as they test the system whilst remaining undetected. and personal credibility can be at serious risk. They create an aura of honesty and portray themselves as someone beyond suspicion. Ironically, these behaviours are Many if not most cases of fraud can be attributed to a lack of often what we might describe in the fraud prevention world as effective control. In the worst cases, subsequent investigations “red flags” or indicators of potential fraud. may in fact reveal there was little if any control in the first place. Complacency and misplaced trust are gifts to potential When someone has worked in a business for a long time, they fraudsters. The opportunity to commit fraud because of understand the weaknesses and the opportunities to commit poor controls, ineffective segregation of duties and limited abuses. When someone who is a good manager recognises oversight combined with pressures on a fraudster, perhaps such gaps in control, they will use this knowledge to put in because of financial problems, peer pressure or inherent place more effective controls but without adding often useless dishonesty are two facets of the so-called fraud triangle which bureaucracy. Do seven signatures on a Purchase Order mean helps us understand why frauds occur. The third facet, the there is greater or less control? They will work with the Audit rationalisation helps us to understand why someone takes Committee and both internal and external auditors to manage that next step and actually commits fraud – “no one will risk. If they are dishonest, then unfortunately there is potential notice”, “they owe me”, “everyone else is doing it”, and it’s only for a much less pleasant story to unfold. a small amount”. But at the heart of these cold calculations by a fraudster is the fundamental belief that they can get away with it and no one will detect their activities. The fear factor
So how do we change such mind-sets? I believe that Many business owners are shocked and feel particularly fraudsters are themselves often very good risk managers. betrayed when after a fraud occurs it is revealed that many They coldly calculate the risks of detection as they get to people in the business actually did have suspicions but failed know what gets checked and what doesn’t. They often have to report such concerns. Why would they not speak up?
34 Issue 18 FINCA Azerbaijan: Higher Standards of Financial Services For 15 years of functioning FINCA Bond Issuance a bank in order to serve clients with a Azerbaijan has overcome a long large variety of financial products and and successful way to become a To support organization’s outreach other financial services. leading micro-financial institution in and enhancing FINCA brand in capital the country. FINCA Azerbaijan was market, FINCA Azerbaijan completed Corporate Social Responsibility founded in 1998 and since then it its inaugural bond issuance in capital has been growing continuously and markets of Azerbaijan, as the State For more than 8 years within the serving more than 145,000 customers Committee for Securities registered framework of its Corporate Social in more than 60 regions of the country. 10,000 bonds, each with AZN 1000 Responsibility FINCA Azerbaijan is According to the mission to provide nominal value, for a total issuance of actively involved in organization of financial services to low-income AZN 10 million and with 3 years maturity. charity activities to support children entrepreneurs to create jobs, build The bond proceeds will be used to fund and adolescents and also sponsoring, assets and improve their standard of the growing business loan portfolio of entertaining programs, sports living, FINCA Azerbaijan continues FINCA Azerbaijan, which exceeds more championships, environment protection its successful efforts to support small than AZN 180 million. events. More than 2,000 children and entrepreneurs across the country adolescents have attended in festivities to create and develop their own Future Steps and Plans organized by FINCA Azerbaijan in businesses. 86% of FINCA’s clients different regions on the occasion of the are in regions and 32% of them are FINCA Azerbaijan awarded with 1st June - the International Children's women. Within recent months FINCA "Uğur-2012" National Award for the Day. Now Organization is preparing to Azerbaijan has carried out various high achievements in the provision of hold educational projects dedicated to priority activities in different directions. microfinance services plans to increase Knowledge Day in September 15. number of customers, loan portfolio and Activities for Customer’s Satisfaction the branch network. 3 new offices will Thus FINCA is not only providing loans be opened in Binagadi, Beylagan and for supporting small businesses that The main content of this success is Salyan by the end of 2013. As a result of mostly requires financing, but is also in the high level of customer services fast growth and the high level of financial tackling some of the serious social standards, favorable loan conditions, and human resources FINCA Azerbaijan problems affecting certain community high corporate policy standards, and makes preparation for transforming into groups. Corporate Social Responsibility strategy which plays a great role in successful functioning of FINCA in Azerbaijan.
As a part of the policy to increase the quality & transparency of customer services and delivering products with the best market prices, within last year FINCA Azerbaijan twice decreased interest rates for the all loan products. This change creates an opportunity for customers to obtain different loan products with more efficient terms and in short period of time from USD 50 up to USD 100,000 with convenient interest rates. The loans payment system has also been simplified for the comfort and convenience of clients. Thus customers are now able to make easy payment by more than 800 payment terminals, which have been located in all regions of the country. member contribution
The answer is fear. Writing in Ancient Greece more than 2600 years ago, Sophocles the Greek Tragedian said in his work called Antigone that "No one loves the messenger who brings bad news". In 1598, Shakespeare referred to a similar concept in his plays Henry IV part 2 and Anthony and Cleopatra essentially saying that you “don’t shoot the messenger”. Regrettably, people do fear being “shot” or in modern terms being terminated, retaliated against or otherwise victimised. It may be so much easier to keep your head down and say or do nothing.
Blowing the Whistle
The term whistle blowing seems to me to be less familiar and less well understood in this region than it would be for example in the UK or US. The term itself was first used by consumer champion Ralph Nader in the seventies. He wanted something that was less emotional than the words snitching or informing. wish. Whistle Blower Security does not disclose details of These terms are frequently used in a pejorative way. Whistle calls to anyone but your designated representatives. We at blowing on the other hand should be seen as something done Grant Thornton can provide you with investigation and fraud for good reason. In many countries, laws have been introduced prevention services should you need these as a result of to provide legal protection for those who decide to reveal their concerns raised on the hotline. concerns.
We believe that whistle blowing is a key part of your fraud Making life more risks for potential risk management strategy. It provides your employees (and customers or suppliers) with a confidential way for them to fraudsters report concerns. The very best whistle blowing systems are also independent and run by a third party on your behalf. The Fraud seriously damages businesses. Fraudsters thrive whistle blowing service contractor should provide you with a because they believe that they are safe from detection, and that call centre operation that runs 24/7, can take calls in multiple colleagues or others who have suspicions are too frightened to languages and provide real time or near real time translation raise their concerns. By using this new service you can ensure facilities as well as a range of alternative communication that someone thinking of committing fraud in your business is channels such as via the Internet (Website or email) and good likely to have second thoughts because the odds of detection old fashioned letters. will have changed substantially in your favour.
It takes great courage for someone to make that call and they Author’s biography need to be sure that they will be treated sensitively and that Farouk Mohamed is the Managing Partner of Grant Thornton their confidentiality will be protected. Azerbaijan. In addition to the overall management of the firm, his client portfolio covers some of the biggest names in Grant Thornton and Whistle Blower Security Inc. team up the country, as well as prominent multinational companies. to provide a service to the CIS With his extensive and varied business experience of over Grant Thornton recognises that there is an increasing demand 35 years, Farouk has particular interest in auditing financial for such services in the CIS. We regularly receive requests institutions, i.e. banks, insurance companies, etc. He has for advice on how to implement whistle blowing and who can significant experience in assurance, tax and management provide such a service. consultancy services, including preparation of documentation We have recently partnered with Whistle Blowing Security Inc. and company structure for IPO and listing within the local in Canada to focus on providing such a service. The service is and international financial markets. Farouk Mohamed is a available for our clients in Azerbaijan. Certified Public Accountant, a Member of the Egyptian Society of Public Finance and Taxes, a Member of the Federation of The service is keenly priced with an all-inclusive subscription Arab Accountants, a Fellow of the Association of Certified charge based on staff numbers. There are no separate Public Accountants (CPA, UK), a Fellow of the Institute of charges for producing a report on calls received and you have Certified Public Accountants (CPA) in Ireland, a Fellow of the added assurance of knowing that calls will be handled by the Montana Society of Certified Public Accountants (US), a an established call centre designed for this purpose. Callers Fellow of Institute of Financial Consultants (USA), a Certified are provided with a unique ID and password to allow on- Accounting Technician in Canada, and a Certified Business going communications whilst protecting their identity if they Administrator in USA. He speaks English, Arabic, and French.
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Counterfeit medicines: a threat to public health Azad Ahmadov, drugs can cause major adverse effects and complications. Medical Director, Fake drugs can also undermine patients’ confidence in the Sanofi Azerbaijan health system, by infringing their legitimate right to be treated with appropriate medication.
This trend has moved beyond geographical boundaries, largely because of the internet. This affects every type of medication. Historically, counterfeiting has largely been While the problem of counterfeit drugs is not a new one, it focused on “lifestyle drugs” such as erectile dysfunction is an increasing challenge for the international community, treatments. Today, however, a new trend is appearing, and poses serious risks to patients. Counterfeit medicines whereby counterfeiting is expanding its focus to include new are found everywhere in the world. They range from random drugs intended for serious illnesses such as cancer, heart mixtures of harmful toxic substances to inactive, ineffective disease, neurological disorders and infections. This can lead preparations. Some contain a declared, active ingredient to both individual and collective risks, especially due to the and look so similar to the genuine product that they deceive emergence of drug-resistance in the case of treatments for health professionals as well as patients. But in every case, the infectious diseases with antibiotics or anti-malarials. source of a counterfeit medicine is unknown and its content is The risks incurred in counterfeit medicines include: unreliable. • the safety and health of patients; Counterfeit medicines present a real danger to patient health. • public health in general; They do not meet any of the standard requirements for quality, • damage to the environment; efficiency and safety. Patients run a number of risks: these • a breach of ethics.
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How can counterfeit medicines be defined?
The World Health Organization (WHO) defines a counterfeit medicine as one that is deliberately and fraudulently mislabeled with respect to identity and/or source. According to the new directive of the European Parliament and of the Council published in the Official Journal on July 1, 2011, a counterfeit medicine is defined as a medicinal product bearing a false representation of its:
• identity, including its packaging and labeling, its name or its composition, with respect to any of its components, including excipients, and the dosage of these components; • source, including its manufacturer, country of manufacturing, Which one is fake? country of origin or the holder of the marketing authorization; Source: IMPACT - International Medical Products Anti-Counterfeiting Taskforce • history, including records and documents relating to the World Health Organization. distribution channels used. Updated May 2008
A counterfeit medicine can be a product containing: New Zealand, the United States and most of the European • no trace of the active ingredient; Union): less than 1% of market values, variable according to • the right active ingredients, but the wrong dosage; the concerned countries. Conversely, in numerous African • impurities or toxic substances; countries, in certain regions of Asia or Latin America, and in • other active ingredients than those found in the genuine countries with emerging economies, the proportion of counterfeit product. medicines is much larger, up to 20 to 30% of the market.
Nonetheless, counterfeiting knows no borders. For example, a Counterfeit medicines: a worldwide issue fake product can be manufactured in China and exported to the United Kingdom, to be injected by a wholesaler into the legal The World Health Organization indicates that counterfeiting distribution chain or purchased online from anywhere in the world. involves 10% of the global pharmaceutical market on average1. Counterfeiters focus first on markets with high profitability, In Europe, according to a report published in July 2011, more high growth potential and strong brand implantation. All kinds than 3 million medicines (integrating intellectual property of medicines have been counterfeited – branded and generic violations) were detained by European Customs officials2. – including lifesaving treatments.
Defining the extent of counterfeiting is difficult, but How much international collaboration international organizations emphasize that counterfeiting is an increasing global criminal trend that can affect us all. Although is there? counterfeiting may generate profits larger than those of narcotics trafficking, its penalties are often very limited. Indeed, In December 2010, the Council of Europe adopted the in many countries, counterfeiting is not a criminal offense. In MEDICRIME convention to criminalize the counterfeiting of countries where it is, there are often no specific penalties; medical products. It was signed by 22 countries. the legal penalties are only defined loosely, pertaining to any type of counterfeiting, or within the context of violations of Interpol underpins cooperation between police forces around intellectual property rights. Furthermore, penalties vary from the world in making illicit international activities a key part of one country to another: fines, imprisonment, confiscation and their agenda. In 2012, 100 countries collaborated in Operation destruction of counterfeited items, loss of civil rights, bans Pangea V to fight against the illegal sale of medicines online. This from certain professions, payment of damages. resulted in 79 arrests and the seizure of 3.75 million potentially lethal medicines for a total value of nearly 10.5 million USD. According to WHO1, the incidence of counterfeiting is extremely low in industrialized countries with effective regulatory and The World Customs Organization also organizes spot market-monitoring systems (i.e., Australia, Canada, Japan, searches of containers in various parts of the world. In 2011,
1 The World Health Organization. Available at: www.who.int/mediacentre/factsheets/fs275/fr/index.hlml. (December 2011) 2 Source: European Commission-Taxation and customs union. Results at the EU border-2010.
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the WCO developed a system for customs information and cooperation, to which Sanofi has subscribed. Customs officers can log into the database and view images of different products so they to identify counterfeit medicines more easily.
Internet: El Dorado for counterfeiters
There are legal online pharmacies that have been created to facilitate access to medicines for patients (e.g. in Germany, USA, France, Netherlands, Portugal, and the United Kingdom). Fifteen European countries have legalized the sale of medicines on the Internet. However, a large number of websites operate illegally, offering prescription-free medicines that are normally sold on prescription, as well as selling unapproved or counterfeit products. Run by illegal organizations, these outlets function as a network, hiding their true identity or lying about their location. Dismantled clandestine factory According to the WHO, more than 50% of medicines bought Source: Sanofi brochure for Healthcare Professionals on websites that conceal their real address are counterfeit. In addition, 96% of these online pharmacy sites are illegal. pharmacist and the manufacturer (most manufacturers have representative offices in Azerbaijan). Be careful: very cheap products could signal a counterfeit product! If you suffer from What happens in Azerbaijan any adverse effects, see a doctor, because this might be due to a counterfeit product. In recent years, a large volume of parallel import of medicines has been discovered in Azerbaijan. Parallel import means The best way for patients to identify potential counterfeits that medicines are imported without appropriate control from is to be as familiar as possible with the drugs they regularly Customs and Health Authorities. Parallel import also poses a take. It is difficult to tell just by looking at them, but the more threat to public health because the counterfeited drugs can be familiar you are with the packaging and the drugs themselves, imported and sold using the same channels. the more likely it is that you will be able to detect a fake drug before taking it. If you know the size shape, color, and taste Sale, storage for sale, and import of medicines in packaging of the medications you take, you will more easily be able to that is not registered with the appropriate Authorities are all identify possible counterfeits. prohibited by the Azerbaijan Law on Medicines and such offenses are punished according to the Criminal Code. Counterfeit medicines around the world • One in every 10 drugs sold around the world is fake, and In February 2013 the President of Azerbaijan approved this can reach 7 out of 10 in some countries. the Amendment to the Law on Medicines, under which all • The number of identified cases of counterfeit drugs medicines must be labeled with the control marks of a relevant increased by 9% between 2008 and 2010. executive authority (Ministry of Health). The Presidential • In 2011, medicines ranked first among the list of counterfeit Decree on the implementation of the Amendment to the Law products kept by European customs (24% of total), beating on the mechanism for implementation was published in April counterfeit cigarettes. 2013. • U.S. $75 billion in 2010: The profits from counterfeit medicines are higher than the profits from drug trafficking. • For every U.S. $1,000 invested, a criminal can garner What practical action can I take? U.S. $20,000 profits from heroin and U.S. $400,000 from trafficking in counterfeit drugs. Never respond to email spam messages offering medicines, • In 2012, 100 countries collaborated with Operation Pangea as they are often from a fraudulent source. Do not give out V to fight against illegal online pharmacies. This resulted in information about your personal health online. 79 arrests and the seizure of 3.75 million potentially deadly medicines worth a total of $10.5 million. When buying medicines, make sure that the packaging has not been tampered with, and that there are no visible Counterfeit Medicines: The Scope of the Problem abnormalities on the box, instructions, blister pack, or • Global sales of fake and substandard medicines in the the actual medicines. Report any discrepancies to the marketplace and via rogue Internet sites, represented an
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estimated $431B1 in 2012. • In 2009, 1.3 million counterfeit insulin needles were • 700,000 people are killed annually due to the use of released into the Polish market, 500 thousand into the substandard treatments for TB and malaria alone. United Kingdom, and 200 thousand into the Netherlands. • 36% of anti-malarial drugs in Southeast Asia are falsified, • In 2010, U.S. Customs and Border Protection seized and one-third of those in Africa fail chemical assay analysis. 3 million fraudulent medicines from international mail, The result is increased drug resistance to existing treatments. including fake penicillin and medicines used to treat AIDS, • At least 20% of the $12 billion annual productivity loss from arthritis and high cholesterol. deaths caused by malaria in Africa is attributable to poor • Counterfeit cough syrup and other counterfeit medications laced quality anti-malarial drugs. with diethylene glycol have caused 8 mass poisonings around • Organized crime syndicates and terrorist groups including the the world and killed tens of thousands. Most recently counterfeit Chinese Triads, Colombian drug cartels, and Mexican gangs cough syrup killed 115 Panamanians, many of them children. are deeply involved in the lucrative trade of unsafe medicines2. • In 2012 109 heart patients in Pakistan died from counterfeit These organized crime networks span 124 countries. medicines. • In some countries, as much as 40% of total medicines supply may be counterfeit. Author’s biography • Children are particularly vulnerable because the safe Azad joined Sanofi Azerbaijan in 2009 as Medical Director. He medication dose for a child is sometimes higher, or, far graduated from Azerbaijan Medical University and worked for lower than for an adult because of the way children’s bodies many years as a physician. His previous place of work was metabolize medicine3. the Public Health and Reforms Center of Ministry of Health • From 2006-2007, a single counterfeiter supplied 2 million of Azerbaijan. From 2000 to 2005, Azad participated in the doses of counterfeit prostate cancer medicines to over Healthcare Partnership Program conducted in Azerbaijan by 25,000 patients in the United Kingdom. the American International Health Alliance.
1 Garrett, Laurie, Ensuring the Safety and Integrity of the World’s Drug, Vaccine, and Medicines Supply, Council on Foreign Relations Policy Innovation Memorandum 21 (2012). Available at: http://www.cfr.org/global-health/ensuring-safety-integrity-worlds-drug-vaccine-medicines-supply/p28256. 2 Mackey, Tim K., et. al., Dangerous Doses: Fighting Fraud in the Global Medicine Supply Chain. Foreign Affairs (2012). Available at: http://www.foreignaffairs. com/articles/137634/tim-k-mackey-bryan-a-liang-and-thomas-t-kubic/dangerous-doses. 3 Id.
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I know what I drink Alexander N. Kalinichenko, water loss hallucinations are observed, and water loss of TAJ LLC, 12% is fatal. CEO The daily requirement of an adult person daily is about 2.5-3 liters of water. This varies depending on age, type of food being ingested, and climate. Part of the day’s water is contained in the food that we consume. Nevertheless, specialists believe that a healthy person must drink about two liters of water per day. It is no coincidence that from space, the Earth appears blue. Life originated on Earth owing to water. However, even after Mankind has invented thousands drinks, which vary they emerged out of the ocean and onto dry land, all live enormously in their tastes, colors, and odors. However, creatures and plants remained dependent on water. Water still nothing can replace a drop of fresh water. Pure drinking water is the basis of everything. is fundamental to the health of our society.
An adult person is two-thirds water. The availability of an But year after year it becomes increasingly difficult to find adequate water supply is at the center of a person’s health, clean water in nature. Even in regions with adequate fresh i.e. his/her life. Water supplies nutrients to the cells, removes water resources, people occasionally suffer from shortages toxins and poisonous substances via the aqueous medium, of high-quality drinking water. The purity of water sources is and carries out daily “cleaning and purification” of the body. strongly affected by modern society. It is of no consequence Water lubricates our vessels, regulates body temperature and today where people live: in huge urban areas or small towns, ensures normal digestion. in industrial centers or agricultural regions. Emissions from thermal power plants, chemical, cellulose enterprises, mines, A human being is unaware of the huge role of water in coke and by-product processes travel for huge distances, his/her life as long as it is freely available. However, contaminating thousands of kilometers of the environment should you find yourself without water, even just for a few through which they pass. hours, it immediately becomes of great value. Our bodies respond to even minor changes of water content. Water In Azerbaijan, according to various sources, 50%-60% water loss of just 2% of total body mass (1-1.5 liter) prompts a samples taken from the surface waterways do not meet strong thirst, 6-8% water loss of consciousness, with 10% health standards. One third of all samples are cause for
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concern in relation to bacteriological removal of poisonous substances from indices. Besides sand and clay, the body. This is ancient wisdom – it is water from the surface sources easier and less expensive to prevent contains chemical compounds and human diseases than to treat them. substances harmful for people, such as nitrites, hydrogen sulfide, ammonia, And here artesian water is the leader manganese, and fluorine. Inhabitants among all kinds of drinking water. of villages and summer cottages, What is artesian water? The majority who fertilize soil with waste and of water on our planet is under the chemicals, pollute water supplies with surface. This water has long been called harmful bacteria and microorganisms. underground water. This is how it is Millions of tons of oil products that generally described nowadays, though leak from vehicles every year along it is be more accurate to call it artesian the 200-300-m lane of the highways water. Artesian water [the word artesian further pollute this “drink”. These comes from the Artois province in substances are washed into rivers by France, where the most famous artesian flood water and accumulate in bottom wells were drilled in Middle Ages] is sediments. Public utilities supplying underground water confined between human settlements with water from the the impervious strata within the aquifers surface water sources take necessary in rock beds under hydraulic pressure. measures for cleaning and disinfection Waters occurring below 25 m depth of river water. Unfortunately, despite are called artesian. They occur mainly these measures, water supplies are in pre-anthropogen deposits (i.e. those substandard. This is due to the poor that did not suffer the harmful impact condition of the water supply network of civilization), within the boundaries and various chemicals used in the of large geological structures, forming decontamination of water. It is known artesian basins. that 40% to 70% of water pipelines need replacing. Considering the As a rule, microorganisms are few in current status of municipal facilities, it the underground waters, and harmful is unlikely that we will see changes in bacteria are practically absent. this sphere soon. The poor condition Underground water is used mainly for of water distribution system in our drinking, as it usually does not require cities and regions does not only lead special purification, or decontamination/ to contamination of water sources. sterilization. Artesian water is also free Accidents and ruptures of water lines from radionuclides, nitrates and nitrites, often leave individual homes or even other harmful substances; hence it is whole housing developments without especially valuable for people. water. At the same time, any water that we Water contamination is one of the key are drinking should contain certain challenges for mankind in the 21st useful elements. The quality of water century. It is impossible to halt progress. is evaluated depending on its content. Every day new industrial enterprises Mineral substances do not possess appear in our cities, and the number of caloric content, as proteins, fat and cars increases. Hazardous emissions carbohydrates do. However, human into atmosphere and discharges into beings cannot live without mineral rivers are increasing, and nature is substances, which are involved in the key the first to face an attack. We can see metabolic processes of the body: water- with our own eyes how forests and salt and acid-base metabolism. Many rivers dwindle, and water creatures enzymatic processes are impossible perish. People are not safe from the without some mineral substances. In the impact of this degradation. Water that is first place this concerns vital elements contaminated with chemical compounds and microelements, such as magnesium, and heavy metals causes disease. potassium, sodium, sulphur, iodine, etc. At the same time pure water itself is Magnesium is required for the formation a universal remedy supporting the of some bodily processes; potassium for
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the functioning of muscular system and endurance of nervous label. The presence of the word AQUA (water in Latin) in the excitement; calcium is a component part of bones and teeth; title and various variations of the term MINERAL does not and sodium is a key ion of extracellular fluids and a major guarantee that the bottle contains real artesian water with all part of sweat. Sulphur is required for formation of proteins and its useful and unique characteristics. processes related to energy transfer. Iodine controls formation of hormones in the thyroid gland, which regulates the function Most producers of bottled water use ordinary water from the of all endocrine glands, the nervous system, vessels and water line that passes multistage chemical decontamination with heart, and restores energy, etc. the use of reverse osmosis technology. At the outlet they obtain distilled water (completely without mineral elements). Actually, As mentioned above, artesian water is underground water, this water is harmful to human health, as its use washes out and if we drill a well in the right place, and it reaches an all the useful substances dissolved in blood and tissue. Hence aquifer, water will flow naturally to the surface, sometimes the producer is obliged to add minimum mineral substances even as a fountain. Only minor part of such water supplies necessary for human beings in a form of powder or solution. Is this comes to the surface, either as small springs, mountain water mineral after that? Yes, but with a caveat – ARTIFICIALLY springs or torrential water streams (geysers). Major water mineral. That is why water produced by international giants Coke masses are accumulated in invisible underground storages, and Pepsi, Bon Aqua and Aqua Minerale, tastes identical in any pressed between the impervious strata, until a free outlet country of the world. Their chemical composition is identical. opens somewhere, or as a result of human activity. Few manufacturers undertake the difficult task of Where can a city dweller suffering among asphalt surroundings producing water in bottles on the base of artesian wells. find artesian water? Should he try to drill an artesian well in the In the first place, the plant-manufacturer must be located yard of a multi-storey building, or should he go to the nearest near the well, or the producer must take on the procedural shop and make the right choice? complications and expenses related to delivery of artesian water to the point of bottling. Besides, artesian water, like The enormous range of bottled water brands on the shelves any natural product, requires attention at all stages of of our supermarkets can confuse the most experienced the process. That is why any competent producer keeps customer. How can one distinguish between different sorts treatment to a minimum, in order to preserve the water’s of water? First you must carefully read what is written on the useful characteristics. As a rule, water delivered from
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artesian sources only goes through mechanical filtration AQUA VITA delivers the purest spring water from 400 m depth and UV or ozone treatment. in the Khudat region. Water Aquavita has a uniquely balanced composition of vital mineral salts and microelements that A number of artesian waters are represented in our market, are necessary for the human body. The water is safe in the both foreign (Evian, Vittel) and local (AQUA VITA). AQUA epidemiological sense, as it does not contain any disease- VITA is real artesian water produced from 120 m depth, in the causing microbes. preserved area of Khudat, at the southern foothill of Caucasus mountain range. The producer of this water, TAJ Ltd, carefully delivers water produced from the source to its plant in Khirdalan via special Abiding to the strictest quality standards accepted as early water tanks, following which water is bottled in almost its as 1997, AQUA VITA decided to upgrade its technological original state. AQUA VITA water is rich in useful macro- and equipment in order to meet growing demand and at the same microelements, such as calcium, magnesium, fluorine, iron, time maintain strict quality control in Azerbaijan. and has been successfully sold in Azerbaijan for eleven years. Consumers of AQUA VITA can answer the question: “Do I “New equipment from the German company Krones for the know what I drink? - Natural water from the source”. Try to ask bottling of water and soft drinks was installed at the company’s yourself the same question. plant in Baku residential settlement Sulutepe. Upgrading allowed us to increase the output of products, as well as to improve Author’s biography systems of quality control and purification of original water. The Alexander N. Kalinichenko was born in Moscow. He graduated new equipment complies with the latest international standards. from the Faculty of Geography at Moscow State University, Today we can talk about at least triple controls for water at the having majored in Oceanography (Diploma with Honors in stages of pumping out and delivery from the sources in the 1989-1994). He is also a graduate of the Academy of National Caucasus Mountains, and directly to the bottling line.” Economy under the Government of Russian Federation ( Institute of Business Studies, Qualification: Strategic The quality of AQUA VITA water and Gulu stan drinks has Management, Diploma with Honors, 2001-2003). He was came been confirmed by the International certificates ISO 9001:2000 to Baku in 2007 when he was invited by TAJ LLC to take the (received in 2003) and ISO 9001:2008 (2009). position of CEO. development & education
Socio-philosophical analysis of innovations Eldar Shahgaldiyev, Associate Vice Rector Khazar University
As a new field of study, “innovation” is part of contemporary philosophical thought, often grouped with social philosophy, philosophy of science and technology. More precisely, it is part of the science of praxeology. The prioritizing of science as a key part of national development strategy is supported by a number of academics1 as a prerequisite for social change, in accordance with the current developmental stage of the globalized world.
There is a large body of research dedicated to the socio- philosophical analysis of innovation, examining its genesis, structure and specific characteristics.2 However, in general, there is insufficient paid to its most important aspect regarding and concept dichotomy, object and purpose within the the philosophy of its measurement. This aspect is its reflective history of human activity and resources. “On the one hand, nature, which reveals its place and role in the development innovation represents continuity with the past. It is continuity of society through the established categorical scheme of in the sense that innovation is about novelty, an idea that was philosophical methodology. A justified philosophical model of present in many forms before innovation took on a central innovation requires at least two essential conditions: recognition place in representations, as we will see. It is also continuity sequence of the innovation process, and increased financial in the sense that innovation is, to many, concerned with investment in science (as science is becoming more and more technological invention, which is a dominant understanding expensive). Thus, the economic context of understanding of what invention came to mean over time. However, on the innovation is crucial for each research project. other hand innovation is a break with the past in the sense that it suggests that invention per se is not enough. There has But what distinguishes philosophy of innovation? In our view, to be use and adoption of the invention, namely innovation, the attributes of philosophical analysis are always theoretical in order for benefits to accrue.3” As this paper does not schemes – categorical and methodological, which in turn can seek to explicitly clarify the terminological polemics around be set in the universal sense, including the praxeological. “innovation”, or its genealogical outline (about which much In philosophy, the multiple facets of innovation (high tech, has been written), we will only seek to support the arguments novelty, patenting, techno-sphere, technological innovation, that innovations should be analyzed within their internal, advanced technology, commercialized innovation, induced contextual, and structural elements related to a certain time. innovation, innovation creativity, innovative changes, etc) Thus, “innovation” is now more all-encompassing in terms of create confusion in the determination of notional apparatus its internal constituents and consistent elements.
1 Scharft, Robert Malden, MA, Blackwell Publishing, 2003: In philosophy of Technology: Technological Condition; Jacques Ellul, Robert K. Merton: The Technological Society, 1964, Vintage; Степин В.С., Кузнецова Л.Ф.: Научная картина мира в культуре техногенной цивилизации. М., 1994 (in Russian); Benoit Godin: Innovation: The History of a Category (Project on the Intellectual History of Innovation, Working paper Nr.1), Montreal, Quebec, Canada, 2008. 2 Collins, H. (2010). Tacit and explicit knowledge. Chicago: University of Chicago Press; Eric Von Hippel, Democratizing Innovation, The MIT press, Cambridge, Massachusetts, London, England,2005, 204 p.; Lebedev SA, Kovlina Y. The philosophy of science and innovation. Moscow: Academic Project, Paradigm, 2012, 182 p.; Nordmann, A. (2011); The age of techno science. In A. Nordmann, H. Radder, & G. Schiemann (Eds.), Science transformed? Debating claims of an epochal break (pp. 19-30). Pittsburgh: University of Pittsburgh Press; Koepsell, D. R. (2000). The ontology of cyberspace. Philosophy, law, and the future of intellectual property. Chicago: Open Court; Layton, E. T. (1974). Technology as knowledge. Technology and Culture, 15(1), 31–41; Lea, D. (2008). The expansion and restructuring of intellectual property and its implications for the developing world. Ethical Theory and Moral Practice, 11(1), 37–60; Wayne M. Bundy Innovation, Creativity, and Discovery of Modern Organizations. Quorum Books, 88 Post Road West, Westport, CT 06881, Greenwood Publishing Group Inc., USA, 2002, 286 p. 3 Benoît Godin: “Innovation: The History of a Category” 385, rue Sherbrooke Est Montréal, Québec Canada H2X 1E3 [email protected]. Project on the Intellectual History of Innovation. Working Paper No. 1, 2008, p.89.
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Today, innovations from the leading high-tech industries significantly penetrate society and culture. Enhanced application of ICT technologies, biotechnology and biomedicine, artificial intelligence and anthropomorphic robots, new biometrical devices such as iris checks, sound wave measurements, sound editions and other features or security checks that have become part of immigration procedures, open up new horizons and norms for scientific research, as well as generating new ontology and global "communication hubs" for further research. The modern world has also begun to dismantle the old philosophical dichotomy of subject / object, and calls for the "unbundling of meanings".
Modern philosophy of science and technology should encompass the major technological advances of post- industrial civilization and innovative industry. In its turn, the latter should move in the direction of maximally "pragmatic philosophy". Thus the new field of study is generated at the intersection between biosocial and technology, more precisely at the edge of the boundaries of “novelty” and “traditional”. This is a new crossroads, where the alternative ontology and epistemological models are expanding the axiological and moral horizons. That is why it is logical to assume that the modern philosophy of science and technology should also nature of scientifically knowable object like Bunge himself has serve as an innovation philosophy. produced in a multi-volume treatise)5.”
However, the object of its study is not only the phenomenon Another modern conceptual source of the subject of modern technology and "high-tech" developments, matter is the “The Ellul Forum” founded in 1988. It plays but the essence of both. In fact, as a type of active agent, a crucial role in illustrating and debating the research innovation substantially transforms and changes the content and analyses of innovations. It publishes articles and of the old traditional philosophical problems and issues, discussions on innovations, the critique referring to the at the same time involving the human presence as the technological civilizations connected with new trends of the main vector of development, which is directed towards the world development. Professor Erik Persson writes: “The soaring technological intervention in biosocial spheres. It is pathologies of “extreme science” and “the science of the useful at this point to provide some models of philosophical implausible” show up almost everywhere in today’s scientific interpretations related to the identification of content analysis world, the most spectacularly, perhaps, in fields such as of innovation for greater clarity. genetic engineering, embryonic stem cell research, cloning, nanotechnology, artificial intelligence (AI), and robotics Robert K. Merton, Jacques Ellul, and Mario Bunge4 are leading with their outlandish discourses on such topics as the philosophical analysts of technology who have also delved into transformation of all living matter into “gray goo” through an the holistic and scientific evaluation of innovation phenomena. out-of-control self-replicating nanoprocess (“the accident to In the book “The Technological Society” (1964), Ellul described end all accidents”), the selective killing of enemy populations technological innovation as a “technique” to be applied to the through genetically engineered “nanoviruses”, the cure of global applications of the cycles for gaining final and successful all illnesses through nanomedicaments or stem cell broths goals. He wrote that “technique” is potentially applicable to any made on aborted foetuses, the cloning of human beings and area of life and is always judged and modified by the criteria the “uploading” of their minds into a computer’s memory, of efficiency. While describing technology, Mario Bunge states or the future overshadowing and replacement of man by that it is unfortunate that the philosophy of pragmatism has artificially hyper intelligent robots, just to mention a few given us less than expected. He describes the relationship popular themes of this kind. Evidently, also virtual reality and between technology and philosophy “in terms of inputs and cyberspace must be included amongst the manifestations of outputs. On the output side, he notes the technology supplies “extreme science”, exuding the typical odour of unrestrained system-theoretical-ontologies (i.e. conceptual systems of the technolatry and pneumapathology.6” Technology is not an
4 Jacques Ellul, Robert K. Merton (Introduction) The Technological Society Paperback, 512 pages Published October 12th 1967 by Vintage (first published 1964); Bunge M. Technology as Applied Science, Technology and Culture 7, № 3 (Summer 1966); Bunge M. Philosophical Inputs and Outputs of Technology in Bugliarello and Doner, eds., History and Philosophy of Technology (1979). Expanded Tecnologia у Filosofia, chapter 13 In: Bunge M. Epistemologia (Barcelona: Anal, 1980) and others. 5 Scharff, Robert Malden: The Technological Condition In philosophy of Technology. MA, Blackwell Publishing, 2003, p170. 6 Erik Persson: Cybergnosticism Triumphant? Towards an Ellulian Analysis of Cyberspace and Cybergaming. The Ellul Forum : Ellul in Scandinavia, Issue 43, Spring 2009, p.7, International Jacques Ellul Society, Berkeley, California, USA. www.ellul.org)
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educational panacea. It is only a tool to help solve a broad of social welfare, social and economic accelerations, product- based problem. We have to use technology rather than be development activities, and so on. A more precise analysis and used by it.7 categorization of user and producer relations while applying innovations is clearer required. From this end, Professor Eric Von Science, through its historical development, can correct the Hippel quite justifiably writes that, “if an electrician were to develop "practical urgency of innovations”, which is characterized by an improvement to the installation attributes of a switch, it would three types of changes in the scientific rationality followed by be considered a user-developed innovation”.10 This process will Stepin and Kuznetsova: classical, non-classical and post-non further demand the “democratizing the nature of innovation”. classical rationality. They wrote: “the criteria for distinguishing Future developments in the formation of new innovations them are: 1) The features of organizational system of objects will undoubtedly belong to the conceptual domain of assimilated by science (simple systems, complex self-correcting, transformation of biosphere into noosphere and emergence self-developing complex systems); 2) the inherent rationality of artificial life of biosphere and global society in the 21st and of each type of system of ideals and standards of research 22nd centuries. In our opinion, this kind of systematic socio- (explanation, description, rationale, structure and construction natural approach to the changes of innovative processes will of knowledge); and 3) the specifics of the philosophical and present itself as the most comprehensive method to interpret methodological reflections over the cognitive activity, ensuring the socio-philosophical and epistemological analyses of the the inclusion of scientific knowledge in their historical culture.8” issue. Evidently, innovations usually turn to inherit some remarkable metaphysical processes of history, and one The methodology of scientific innovation constitutes the cannot contradict the following arguments and conclusions cornerstone of its perspective dimensions, which includes three drawn by Mario Bunge: interrelated elements that are usually analyzed separately: (a) “1. The world is composed of things, that is, it is not simple, and it conditions for the effectiveness of innovation; (b) resources, is not made of ideas or of shades of ideas; 2. Things get together models of commercialization of research; and (c) standards in systems (composed of things in more or less close interaction), and risks of innovation. and some systems are fairly well isolated from others; 3. All things, all facts, all processes, whether in nature or in society, Despite the abundance of existing interpretations about the fit into objective stable patterns (laws); 4. Nothing comes out of socio-philosophical analyses of the content and structure nothing and nothing goes over into nothingness; 5. Determination of innovation, there are still some areas that require special is often multiple and probabilistic rather than simple or linear.11” attention from scientists. Thus we believe that first of all, there should be a clear definition encompassing the universal scale Now, let us say a few words about the most debatable and of ‘innovation", with its demarcation lines consolidated into the contradictory sides of innovation. Techno-genetic rationale most effective artificial integrity. Second, the process of thought usually contributes to the improvement of living conditions. in innovation (observations, hypotheses, experiments, laws However, at the same time, it also leads to global degradation and theories) is not only connected with the diversity between of the human biosphere, facilitating the growth of artificial life. the old and new or various speeds of scientific development, It is also connected with the modern contradictory market but also with “commonalities” of modern innovations. But would economy and its formative role in the technocratic society. this be possible? On this point, Wayne E. Bundy writes: “It is Scientists should more rigorously combine their efforts toward fortunate, indeed, that the scientific method is not universally humanistic approaches to new discoveries and innovative accepted and is rigidly followed perception for discovery in practices, and adopt a more pragmatic focus on democratizing science and technology. Such blind obedience would help to innovations and creativity in modern organizations. assure the persistence of status quo, thereby decreasing the credibility of the technical world.9” Author’s biography Eldar Shahgaldiyev is Associate Professor at Khazar University, Third, not all innovations applied in the course of the global Head of Division of Graduate Studies and Research, and Associate production turn "the thing" into "hot money", "speculative Vice Rector. He joined Khazar University in 1999 as an instructor transactions". This is why a comprehensive theory of “risk and in Sociology and Educational Psychology. Previously he was management of innovations” also needs to be in place. Editor of "Yurd", issued by the Office of the President of Republic Fourth, the continuing changes to innovation offer an increasing of Azerbaijan, Supervisor of the Training & Staff Competency number of attractive features to users, such as improvement Department at McDermott, and a staff member at IOM Azerbaijan.
7 Postman, N., 1993; Technopoly: The Surrender of Culture to Technology. New York: Vintage Books. Source: The Ellul Forum : Jacques Ellul & Latin America, Issue 40, Fall 2007, p. , International Jacques Ellul Society, Berkeley, California, USA. www.ellul.org) 8 Степин В.С., Кузнецова Л.Ф. Научная картина мира в культуре техногенной цивилизации. М., 1994.“Научная рациональность в техногенной культуре: типы и историческая эволюция” 04.06. 2012, Moscow, 1994, c. 147–148, 170–172 (in Russian) 9 Wayne M. Bundy Innovation, Creativity, and Discovery of Modern Organizations. Quorum Books, 88 Post Road West, Westport, CT 06881, Greenwood Publishing Group Inc., USA, 2002, p.125 10 Eric Von Hippel, Democratizing Innovation, The MIT press, Cambridge, Massachusetts, London, England, 2005, p.3 11 Mario Bunge: Philosophical Inputs and Outputs of Technology. In In philosophy of Technology. The Technological Condition. Scharff, Robert Malden. MA, Blackwell Publishing, 2003, p176.
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Farmer’s Access to Credit in Azerbaijan Arelis Gomez, Agriculture Finance Expert for the USAID ACT Project
Misconceptions on Interest Rates and Concessional Loans
Access to finance for working capital is the most pressing need of farmers and rural enterprises, particularly the small and medium. Contrary to prevalent misconceptions, high interest rates and lack of concessional terms are not significant barriers. Experience worldwide has proven that small farmers are willing to, and actually do, pay market interest rates if other terms and conditions, such as minimum documentation, easy guarantees, and fast disbursement, are present. What requirements are extremely cumbersome. The problem is matters to them is not just the interest rate but also the worse in Azerbaijan because banks bear all the risks associated transaction costs of the loan. with loans granted under government concessional lines. This means that if a client fails to pay back the loan, the bank still Transactions costs are those incurred by the client to meet all has to pay the government. Yet at interest rates as low as 4%, the requirements in the loan process. They include fees for banks are unable to cover the losses incurred in collecting bad certifications, photocopies, transportation, phone calls, collateral loans. As a result, banks rarely grant loans under these lines registration and time away from work. Often these costs add up or protect themselves with stiff documentation and collateral to become even higher than market interest rates. If transaction requirements. costs are reduced to a minimum because of easy loan procedures and fast disbursement then interest rates could be high. To access these loans, farmers spend relatively large sums of money in obtaining documentation, collateral registration, In Azerbaijan for example consumer and micro business traveling to branches, making phone calls as well as in loans offered by most financial institutions are easy and fast. providing gifts to loan officers and branch managers (Table The loan application is one or two pages; documentation 2). Furthermore, the processing time from application to final requirements are limited to a picture ID; collateral is usually disbursement could take as long as four months. By the time built around household and business access, guarantors, and/ the money is disbursed the opportunity for planting is lost. or group guaranties with a disbursement period of two to five After adding up all the transaction costs of the concessional days. A large number of farmers prefer to take these easy and 4%-6% interest rates, the farmer ends up paying close to fast loans at market rates of 24% to 32% annually, even when or even higher rates than the 24% to 32% paid to a bank they have the option of taking loans at concessional rates of for a three day disbursement. In many cases the transaction 6% annually from government lines of credit. As most farmers costs are so high as to render concessional loans prohibitive have other income usually from non-agriculture sources, they to farmers with credit needs below 2,000 AZN (Table 3). are able to meet the monthly installments required by the While the lines were established to help the small farmer, business and consumer loans. until December 2012, only farmers with credit needs above $10,000 de facto qualified for the concessional lines1. The A main problem with concessional loans is that, despite final result is that concessional loans have mostly benefited the low interest rates offered, documentation and collateral large farmers.
1 In January this year, this ceiling was reduced to 5,000 AZN.
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Table 2: Estimates of Transaction Costs from Concessional Regardless of the final beneficiary, another standing issue Lines (AZN) to consider is that Government loans, particularly the highly
Photocopies Costs (AZN) concessional ones, create the perception among clients that 1. Picture ID (notarized) 5.00 repayment is at best optional. Thus the quality of those loans 2. Tax registration ID (notarized) 6.00 tends to deteriorate very rapidly. In general banks are unwilling 3. Land title 30 Certificates to provide statistics on the performance of government lines. 1. Pledged collateral (Real State) evaluation 0 Yet they all agree that their performance is poor. Reportedly, 2. Certification that property is not pledged to other parties 30 3. Certification of people living in the pledged property 30 repayment rates range between 40% and 75%. As the 4. Notarized copy of the collateral agreement 40 banks bear 100% of the risks most shy away from providing 5. Collateral registration at the registry 92 Travel concessional loans in any significant numbers and make it Travel costs - loan in quiry to the bank (1 trip at 2 AZN average 1. 4 very difficult for clients to access them. eachway) 2. Travel costs - certification that propertyis not pledged (2trip) 8 Travel costs - certification of people living in the pledged 3. 8 property (2 trips) 4. Travel costs - notarized copy of the collateral agreement (1trip) 4 Access to Credit in Azerbaijan 5. Travel costs - collateral registration at the registry (1 trip) 8 6. Travel costs - documentation delivery to the bank (3 trips) 12 7. Travel costs - loan follow up of the bank (4 trips) 16 Access to credit has significantly improved in Baku and the 8. Travel costs - loan closing and disbursement (1 trip) 4 main cities over the past five years. A large number of banking 9. Travel costs - notarization of ids and land documents (2 trips) 8 Time Value and non-banking institutions, such as Demir Bank, AzerCredit, Travel time - loan inquiry to the bank (1 trip = 3 hrs at 1,39 p/ 1. 4,17 Bank of Baku, Finca, Access Bank, Bank Respublika, AG Bank, hour) 2. Travel time - certification that property is not pledged (2trip) 8,33 and Turan Bank to name a few, have been actively involved in Travel time - certification of people living in the pledged 3. 8,33 property (2 trips) the provision of loans to micro and small entrepreneurs as well 4. Travel time - notarized copy of the collateral agreement (1trip) 4,17 as low income families through business and consumer loans. 5. Travel time - collateral registration at the registry (1 trip) 8,33 6. Travel time - documentation delivery to the bank (23 trips) 12,5 The presence of these institutions in the rural areas is growing 7. Travel time - loan follow up of the bank (5 trips) 20,83 rapidly as well. The number of branches outside of Baku has 8. Travel time - notarization of IDs and land documents (2 trips) 8,33 9. Travel time - loan closing and disbursement (1 trip) 4,17 grown in 25% between the years 2008 (266 branches) and 10. Waiting time including time and the Branch (2 hrs average) 52,78 11. Time collecting documentation at home 6,94 Miscellaneous INSTITUTION ACTIVE OUTSTANDING Average 1. Phone calls CLIENTS PORTFOLIO Loan AZN Occasional gifts and fees to speed up certifications, 2. 20 registrations and approvals* ACCESS 126 446 527 783 179 4,174 AZERCREDIT 59 751 57 287 700 959 Total estimated transaction costs 463,89 BANK OF BAKU 1 999 41 821 678 2,092 KREDAQRO NBCO 18 912 32 335 521 1,71 ASSUMPTIONS: DEMIR BANK 67 103 36 054 982 537 Salary or in come of AZN 250 p/month AZN 250 FINCA AZ 136 950 153 545 297 1,121 Opportunity costs/ Average salary per hour MOL BULAK AZ 16 124 15 182 477 942 (based on monthly salary /22,5working day /8 hrs per day AZN 1,39 PARABANK 14 569 97 465 178 6,69 Travel time PER TRIP to town of 1,5 hour each way Hrs. 3 UNIBANK 98 579 504 765 551 5,12 Waiting time at an average of 2 hours per trip Hrs. 2 TURAN BANK 17 369 209 766 055 12,077 Travel costs per trip at an average of AZN 2 per each way AZN 4 VIATOR 18 677 13 188 967 706 * Values could not be confirmed 2012 (330 branches). This percentage was only 8% for Baku Table 3: Final Costs of Concessional Loans to Small Farmers branches. Moreover, 72% of all branches opened during 2012 (AZN) were located outside of Baku (64 out of 88 new branches)2. LOAN AMOUNT (in AZN) Fees 1,000 AZN (-) Administrarion fee of 2 % to 4% (paid in advance) 3% 30 AZN (-) Insuranse 1% to 2% (paid in advance) 2% 20 AZN Table 1: SME Loan Portfolio Statistics as 31/12/2013 (-) Other ( 0,5% to 2% )(paid in advance) 1% 12.5 AZN The problem remains that besides the government lines of Gross a mount disbursed 6% 938 AZN (-) TRANSACTION COSTS (paid in advanced) 49% 464 AZN credit there are not many agriculture loan products specifically Net Loan Amount after deducting transaction costs 474 AZN designed to address the needs of small farmers. Prevalent Effective interest of the nominal 6% based on actual amount 63 AZN disbursed misconceptions among commercial banks with regard to the Nominal costs in FEES, INTEREST & TRANSACTION COSTS 527 AZN risks associated with agriculture and the lack of knowledge EFFECTIVE RATES (CONSIDERING ALL COSTS) BASED 111% ON THE ACTUAL AMOUNT DISBURSED* on how to manage those risks have long prevented banks from developing products specifically designed for the Fees 2,000 AZN Fees 3,000 AZN Fees 5,000 AZN Fees 10,000 AZN 3% 60 AZN 3% 90 AZN 3% 60 AZN 3% 300 AZN sector. Notwithstanding, the situation is expected to improve 2% 30 AZN 2% 45 AZN 2% 30 AZN 2% 150 AZN substantially in the next years. Fast growing competition in the 1% 25 AZN 1% 375 AZN 1% 25 AZN 1% 125 AZN 6% 1,885 AZN 6% 2,828 AZN 6% 1,885 AZN 6% 9,425 AZN cities and increasing client indebtedness, is forcing financial 25% 464 AZN 20% 564 AZN 14% 664 AZN 9% 864 AZN institutions to look to the regions for market expansion. In 1,421 AZN 2,264 AZN 4,049 AZN 8,561 AZN 9% 127 AZN 8% 191 AZN 8% 318 AZN 7% 636 AZN order to better serve their rural markets, moreover, some 39% 591 AZN 34% 755 AZN 28% 982 AZN 22% 1500 AZN banks are currently developing agriculture loan products for 42% 33% 24% 18% small and medium farmers. The positive experience in the
2 The Central Bank of Azerbaijan
50 Issue 18 development & education
regions with consumer and business loans has proven to America; South Africa, Kenya, Tanzania, Uganda and in Africa; banks the farmer’s creditworthiness. In fact, over the past two India, Bangladesh, and Philippines in Asia, to mention a few years the USAID ACT Project has been actively working with represent best practices in the provision of rural financial services. banking and non-banking institutions on how to effectively They have a long history, more than 35 years in some cases, of manage those risks and in the development of such products. work towards improving access to credit for small farmers and Other international agencies such as the German Azerbaijan entrepreneurs. Fund (GAF) and the International Finance Corporation (IFC) are also working on related issues. The Central Banks in these countries have worked closely with the microfinance industry to develop regulations that facilitate The new rural and/or agriculture loans offer easy access, the provision of loans to small entrepreneurs and farmers in simple collateral and fast disbursement to farmers; all types urban and rural areas. For example, there is now legislation that of crops are eligible. In exchange they charge market interest facilitates contracts with small shops in rural areas to provide rates, require monthly payments and involve relatively short financial services on behalf of a commercial bank. They are terms (up to 24 months). Farmers lacking sources of income called Non-Banking Correspondents or NBCs. Colombia, other than agriculture are eligible for balloon payments in Brazil and Peru, are great examples of the use of NBCs to some cases. Together with business and consumer loans, bring banking services to rural areas. Brazil has over 130,000 these agriculture loans will accommodate the short-term NBCs covering 100% of all rural municipalities; Colombia has working capital needs, and to a lesser extent medium term over 12,000. There is also legislation that facilitates the use of investment needs (3 to 5 years) of most small farmers. Long- cell phones to make payments, open savings accounts, send term investment financing needs, however, still remain and will remittances and pay any type of utility bills. In this manner even remain largely unmet. the most remote village could be covered with financial services. Philippines, Kenya and South Africa are great examples on the use of cell phones in the provision of banking services to the The Role of the Government rural, small or isolated.
The Government’s role should be limited to providing an Azerbaijan has come a long way in the last few years in enabling environment for the expansion of credit and other development of lending to small farmers and entrepreneurs. financial services to the population at large. A first step is to There is more that needs and can be done to further develop improve the regulatory and supervisory framework in order to the industry in support in particular of growth of Azerbaijan’s make it more conducive to the provision of small loans and agriculture sector. A conducive regulatory and supervisory other financial services. environment, further technical assistance to banks in developing technologies and products to better serve the The regulatory framework for the banking system was built sector, and innovative delivery channels are key to bringing around large clients. Consequently, the requirements on financial services to the rural populations in a large scale and documentation, financial analysis, collateral and provisioning in having a significant impact on the agriculture sector. are similar for AZN 1.0 million or AZN 1,000 loans. Regulations on loan provisioning are largely collateral based. Yet innovative Author’s biography guarantees such as household and business assets, Ms. Arelis Gomez currently works as Agriculture Finance Expert guarantors, and solidarity groups commonly used by most MFIs for the Azerbaijan Competitiveness and Trade Project of the US are not considered strong enough or even valid. As such they Agency for International Development (ACT/USAID). Ms. Gomez are subject to a higher provision than, for example, land or real is a seasoned microfinance specialist with more than 20 years of state. Furthermore, strict requirements on branch infrastructure experience designing, developing and evaluating microfinance (e.g., vaults, bullet-proof teller glass), operations (e.g., security, lending programs and products for government agencies insurance, transportation of cash) and hours of operation and multilateral donors worldwide, including the US Agency (e.g., Monday - Saturday 9 a.m. to 5 p.m.) make the costs of for International Development (USAID), the InterAmerican providing services to rural populations prohibitive. The relatively Development Bank (IDB), and the United Nations International high administrative costs of providing small loans to rural clients Fund for Agricultural Development (UN IFAD). In this capacity, have long prevented banks from forming any serious design of Ms. Gomez helped expand formal sector financial services, servicing the agriculture sector on a large scale. including lending and deposit, credit and other financial services, to micro, small and medium enterprises in Latin America, Africa Governments worldwide have played a key role in aligning and Asia. She is a highly-experienced professional with more regulations on information, financial analysis, collateral and than 200 overseas consulting assignments worldwide in the provisioning requirements to the small size of the SME, areas of financial and managerial assessments of banking and agriculture and consumer loans. They have also played a key non-banking microfinance institutions, design of micro, small, role in developing regulations on innovative, low-cost, delivery and medium size loan, insurance and deposit products, delivery channels like non-banking correspondents and mobile banking channels such as non-correspondent banks and mobile phone for the provision of financial services to the rural, small and/or banking, as well as the development of regulatory frameworks isolated. Countries like Bolivia, Peru and Colombia in South for microfinance activities.
51 AmCham Azerbaijan
The American Chamber of Commerce in Azerbaijan is a About us private, non-profit business association supporting and promoting the interests of business in Azerbaijan.
Established in 1996, AmCham is com- posed of over 240 members and asso ciates active in every sector of the Azer baijani economy. We represent 80% of all foreign investment, as well as a significant portion of local investment which allows us to promote American, Azerbaijani and multinational corpora- tions. This includes leading companies in Energy, Banking, ICT, Legislative/ Financial Consulting, Professional Ser vices, Education, Real Estate Develop- ment, Health, Transportation, Travel and Production fields.
An active and positive influence in Azerbaijan, we conduct our mission with integrity and respect for the country, observing all local laws and insisting Membership To apply on the highest ethical standards in all relationships and transactions. There are two types of affiliation with To apply for affiliation with AmCham, AmCham: Member and Associate. a candidate must submit a written application in the form adopted by Why join? Member status includes voting the Board of Directors. Membership privileges and eligibility for Board and applications are available at the Key member benefit – committee chairmanships in addition AmCham office or on our website at best networking opportunities in to the privileges granted to Associates. www.amchamaz.org. The application Azerbaijan! For affiliation as a Member, a candidate form should be completed and sent to must be a legal entity, registered and our office with the company registration As a member of AmCham, your company doing business in Azerbaijan and be certificate issued by the Ministry of has access to a vast network of business in good standing in the community, as Justice of Azerbaijan. information and contacts in Azerbaijan and determined by the Board of Directors. in the US government, as well as valuable A candidate meeting the objective and information on US businesses across A legal entity, branch or representative subjective requirements for affiliation Europe through ECACC (European office of a legal entity is eligible to be with AmCham is accepted as either a Council of American Chambers of affiliated with AmCham as an Associate, Member or Associate upon receiving Commerce) and US Chamber of subject to the Board of Directors’ an affirmative majority vote of the Commerce. determination of good standing in the Board of Directors and paying the first community. year’s fee for the candidate’s category Additional Member Benefits include: of affiliation. Associates are eligible to participate in Annual Employee Salary Survey various activities; receive our regular To maintain affiliation with AmCham, Quarterly Inflation Survey publications, including the Membership Members and Associates must continue AmCham Membership Directory Directory, Annual National Employee to meet our eligibility requirements, be AmCham Resource Library Salary Survey and Quarterly Inflation in good standing in the community, and Survey. Associates, however, are not be current with all financial obligations For more detailed information please entitled to vote or serve on our Board to AmCham. visit our website www.amchamaz.org of Directors.
52 Issue 18 Business Events Upcoming Migration Code: difficulties and opportunities.
June 2013
The Parliament of Azerbaijan has considered the draft Migration Code, which passed its second reading in June 2013. Analysis shows that the draft Code, once adopted, will entail considerable changes to the application process for work and residency permits as well as to visa procedures. In order to inform our members about the implications of the new Migration Code, AmCham invited members to a seminar on “Upcoming Migration Code: difficulties and opportunities”. The event featured the Managing Partner of the EKVITA Legal and Tax Services Mr. Ilqar Mehdi, who provided participants “The new system will entail the association of tax liabilities with a detailed analysis of the practical effects of the changes with automation procedures, the integration of government that the draft Migration Code will introduce. agencies and other relevant bodies, the forecasting and analysis and the use of a single data base,” explained Samira Musayeva.
The conference also introduced and explained changes and concessions in Azerbaijani tax legislation, the organization and conduct of tax audits, and the role tax receipts as key components of budget revenues. The main purpose of the conference was to establish and foster the tax partnership between the government and private sector by changing the nature of the tax culture, investigating reasons for lack of compliance with tax regulations, assessing the impact of accounting practices on tax administration, learning about practical mechanisms in Azerbaijan, and highlighting the importance of being a responsible tax payer.
The conference was organized with the support of Deloitte & Touche, KPMG Azerbaijan, PwC Azerbaijan and Ernst & Young. The sit-down working luncheon during the conference Tax Conference was generously sponsored by Synergy Group. June 12, 2013
AmCham hosted its third Tax Conference jointly with Ministry of Taxes on 12 June 2013 at JW Marriott Hotel Baku. The program featured distinguished speakers from the private sector as well as high-level officials from the Ministry of Taxes and international organizations.
“The Tax Ministry of Azerbaijan aims to increase transparency between the private sector and government by introducing online mechanisms for taxation processes in accordance with international standards. Certainly transparency is the main goal of this procedure but it also promises convenience and ease for tax payers, as well as saving time,” said Natig Amirov, First Deputy Minister of Taxes.
53 AmCham Azerbaijan
Monthly Member Luncheons 31 May 2013
Our Special Guest Speaker in May was Ms. Aliya Azimova, Azerbaijan Country Manager for International Finance Corporation (IFC) who presented the IFC’s main priorities in Azerbaijan. I light of our commitment to keep our members updated on the latest relevant changes and developments to the business environment, we also requested one of our GSM operators, NarMobile, to give a presentation on the new requirements on International Mobile Equipment Identity (IMEI) registration for mobile phones.
26 September, 2013
The Minister of Education, Mr. Mikayil Jabbarov honored us with his presence for the third time. The Minister stated that professional career development for students remains the top priority for the education system. “In this regard, it’s very important to extend cooperation between educational institutions and businessmen. We can achieve good results if the business community remains loyal to the principle of social responsibility and becomes more active in the process 27 June 2013 of professional growth of young people”, said the Minister. The Minister also called upon AMCHAM members to provide Our Special Guest Speaker this month was Mr. Jamil Alizada, scholarships for students, to organize summer internships, Head of the Tax Policy and Revenues Department of the Ministry and to ensure employment after graduation. He gave a general of Finance of the Azerbaijan Republic, who shared his views on overview of his goals and ambitions for his new position, the tax reforms aimed to promote entrepreneurship. Mr. Alizada is followed by an open Q&A session. directly involved in the State Budget Revenues management and In 1992, Mr. Jabbarov entered the International Law Faculty at in projects on additions and amendments to the Tax Code. Mr. Baku State University, and graduated in 1997 with an honors Alizada was appointed as a head of department when the State diploma. During 1997 and 1998, Mr. Jabbarov completed an Head Tax Inspection was established in Azerbaijan. From 2004, MA at the McGeorge School of Law at the University of the Mr. Alizada has served as the head the Tax Policy and Revenues Pacific in Sacramento, California. In 2004, he completed an Department in the Ministry of Finance. During 1999-2000, he MA in Economics at Azerbaijan State Economic University. participated in the preparation of the Tax Code of the Republic of Since 1999 he has been a member of the New York State Azerbaijan. He was actively involved in the establishment of Tax Bar Association. Having started his career in 1995 in the Inspection mechanisms. banking sector, Mr. Jabbarov worked as a lawyer in a law firm and in the private sector from 1999 to 2002. From 2002 to 2003 he was the Advisor to the Minister at the Ministry of Economic Development of the Azerbaijan Republic, and during 2003-2004 he was the President of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO). He was appointed Deputy Minister of Economic Development in February 2004. During that period, he was responsible for coordinating relations with international financial institutions, as well as foreign economic relations, foreign investment policy, legal issues in international arbitration and corporate governance. In March 2009, Mr. Jabbarov was appointed the Head of the State Historical-Architectural Reserve, “Old City”, under the Cabinet of Ministers of Azerbaijan Republic, and then in April 2013 as Minister of Education.
54 Issue 18 AmCham Azerbaijan
Committee Highlights
Dmitriy Miagkov, Nobel Oil’s Business Transformation Director., Mr. Miagkov has 15 years of ERP implementation experience in Russia, Azerbaijan, CIS and the Middle East.
23 September The Travel, Hospitality and Tourism Committee gathered for a presentation on Hotel Exchange Permission by Shahin Mammadov, Director of the financial management department at Pasha Bank.
25 September The Tax and Customs Committee meeting was dedicated to updates on the meeting schedule for the rest of the year, followed by a presentation on Taxation for Expatriates, presented by Mushvig Aliyev, Senior Manager of KPMG Tax & Legal.
24 June The Corporate Social Responsibility Committee meeting covered several issues, including the first issue of the CSR Newsletter, its format and contributors, the introduction of the Deputy Chairman, and a presentation by Ernst & Young.
21 August The main goal of this Human Resources Committee meeting was to approve the questionnaire and commence the project.
9 September The Banking, Finance and Insurance Committee meeting held two presentations: (i) on Internal Auditing in Banks and Insurance companies – presented by Farrukh Abdullakhanov and Dmitry Chistov from KPMG. (ii) on Compliance requirements for financial organizations – presented by Nurlan Babayev from Financial Monitoring Service under the Central Bank of Azerbaijan.
16 September The Corporate Social Responsibility Committee gathered to introduce the CSR Newsletter as well as to hear a presentation on CSR Internal Communications by Chairperson Leyla Seyidzadeh, and to decide on the topic of the next CSR Newsletter.
18 September – Human Resources Committee members met to discuss several issues, including enhancement of public-private partnerships, the finalization of the Salary Survey, PIE Project, HR interview skills workshop. The Committee also heard a presentation on Education and Careers by Bahruz Hidayatzade, Business Development Director of ITECA Caspian.
19 September The ICT Committee met to discuss opportunities for cooperation with the AmCham CSR Committee on social events, and to hear a presentation on the benefits of ERP implementation by
55 AmCham Azerbaijan
Social Events July 2013, AmCham 18th Annual Independence Day Picnic
On July 6th 2013, AmCham hosted a tremendous 18th Annual with a firework display, and the night began with a disco that Independence Day Picnic at the Ramada Hotel, attended by continued till dawn. 1100 people! We would once again like to say a big thank to the sponsors The event was officially opened with welcomes from the Vice of the 18th Annual Independence Day Picnic - PASHA Bank, Presidents of American Chamber of Commerce in Azerbaijan Azercell, Tuborg, Holcim, Cross Caspian, PASHA Travel, Coca- Teyba Gouliyeva (Société Générale) and Mark Thomas Cola, Chevron, McDermott, Amec, PwC, Xazar Investment, (BP), followed by the Azerbaijani and American national Golden Pay, BeSmart, The Landmark, Kempinski Hotel anthems, and a welcome address by US Ambassador Badamdar, Four Seasons Hotel Baku Azerbaijan, Fairmont Richard Morningstar. Vugar Sadig, Director of Corporate and BAKU, Oriflame, JW Marriott, Jumeirah, Gazelli Group, Hind Commercial Banking Department at PASHA Bank, the event’s Klinikasi, HYATT Regency Baku, Hillton, Park Inn, EXELSIOR main sponsor, also gave a speech to welcome the guests, and Hotel and International SOS, all of whom made this wonderful finally Nargiz Nasrullayeva Muduorglu, the Executive Director event possible. of American Chamber of Commerce in Azerbaijan, announced the official opening of the 18th Annual Independence Day Picnic.
A live band and BBQ party started at 17:00 and continued till dawn. Guests enjoyed the kids club, various games and competitions, dance classes, and a even a pie-eating contest. The highlight of the event was AmCham’s Got Talent Show. The participants of the show included Turab Teymurov from AmCham, Kent McNelley (CEO of Azerfon), the Azercell Team, and Nigar Hasanzade from Aquavita. The winners were Teyba Gouliyeva from Société Générale and Mark Thomas from BP, who performed Eurovision 2010 Denmark: Chanée & N’evergreen – In a Moment Like This. The raffle draw started right after the show, with a main prize of a trip to Paris for two people, with 5 nights in a 5 star hotel, generously donated by PASHA Travel. Lanterns sponsored by PASHA Bank were launched into the sky by guests, creating an amazing spectacle across the whole city. The evening was finished
56 Issue 18 AmCham Azerbaijan
57 AmCham Azerbaijan
June 11, Summer Cocktail On 11 June, AmCham Azerbaijan and British Airways private outdoor setting of the Hyatt Regency Poolside. The celebrated the start of the summer season and the formal highlight of the evening was the business card raffle with a launch of BA in Azerbaijan! Guests enjoyed a delicious BBQ, prize of two return business class tickets to London and a live music from East Groove band - and most importantly, two-night stay at the Luxury Wesbury Mayfair Hotel in the the company of the AmCham member community in the heart of London!
58 Issue 18 AmCham Azerbaijan
September 13, Back to Business Cocktail On 13 September, 2013 AmCham & Deloitte held the traditional joint ‘Back to Business’ Cocktail evening. The event was held on the outdoor terrace at one of Baku’s most glamorous venues - Pacifico Restaurant. What better way to open the business season than to attend an After Hours cocktail evening hosted by Deloitte & Touche and AmCham Azerbaijan? AmCham members and friends enjoyed great company, delicious appetizers, and exquisite drinks on the gorgeous terrace of Pacifico.
59 AmCham Azerbaijan
Projects New members July 2013 AmCham Azerbaijan Index of Prices
AmCham Azerbaijan has established its own Consumer Price Index and reports changes in the AmCham Azerbaijan Index of Prices (AAIP) regularly on a quarterly basis since 2006. The survey is conducted collecting the prices of a fixed representative group or ”basket” of goods and services every quarter. These prices are then compared to the prices of the same goods and services from the previous quarter and the price change calculated. The prices of these goods and services are then combined into a single index measuring the overall level of prices. Different ”weights” are attributed to the various goods and services to reflect the average expenditure by households.
The sample of representative goods and services for which prices are collected each period is held constant and the set of weights is fixed to reflect the importance in the typical household budget of the particular good or service. It is possible that, following the trial period.
As before AmCham reports two AAIPs one for Expatriate households (AAIPE) and one for Azerbaijani households (AAIPA). Prices were collected in Baku. Over the last year (the base is 100 at 30 June 2012) the AAIP rose by 9.12 percent for Azerbaijani consumers and 8.90 for Expatriate consumers. In the 2nd quarter of 2013 the AAIP rose by 2.25 percent for Azerbaijani consumers and 2.02 for Expatriate consumers. The largest upward effect on the AAIP rate came from Fats and Oils and Dairy and related products where Index of Prices rose by 16.47 and 14.52, respectively. The only downward effect on the AAIP rate came from Fruits & Vegetables where Index of Prices went down by 0.65 percent due to seasonal affects.
Public utilties, transportation 0
Fuel 0
Pharmaceutical products and 0 personal hygiene
Non-durable household goods for 0 routine maintenance
Fats and oils 16.47
Dairy and related products 14.52
Meats, poultry, fish and meat products 0
Sugar and sweets 0
Fruits and vegetables -0.67
Cereals and bakery products 1.67
-2 0 2 4 6 8 10 12 14 16 18
60 Issue 18 AmCham Azerbaijan
CSR activities by members PASHA Bank wins “Best Corporate Social Responsibility (CSR) Program in Europe” at the Europe Banking Awards 2012
Mr. Taleh Kazimov, Member of the Board Department, commented: "Despite the and Chief Investment Officer (CIO) noted: Bank's relatively short period of activity in "The fact that the Bank has received the market, it has identified clear CSR aims this award for the second time highlights and priorities as part of its Development how highly PASHA Bank's investment Strategy for 2012-2014. It has already activities are regarded by the professional successfully completed numerous community. We have seen great projects relating to culture, education and success over the last couple of years, as sport. By implementing its CSR program, demonstrated by our activity in the bond PASHA Bank is actively supporting local market, where we have issued corporate communities and continuing to contribute bonds across a variety of sectors reaching to Azerbaijan's further development. EMEA Finance magazine's Europe Banking a total of approximately AZN 102.4 million. We are glad that our efforts have been Awards 2012 were held in Vienna, Austria The Bank's securities portfolio currently recognized by the international investment on June 5, 2013. PASHA Bank, one of exceeds AZN 335 million, and we hope community." Azerbaijan's leading banks, won two it will continue to grow over the coming awards, "The Best Investment Bank of years." Azerbaijan" and "The Best Corporate Social Sona Abbasova, PASHA Bank's Responsibility (CSR) Program in Europe." Director of Corporate Communications PASHA Bank and the British Council Announce the Winners of Essay Competition 2013 Within the framework of the Essay Competition, a joint project of Aynura Piriyeva, Lead Manager of Corporate Communications PASHA Bank and British Council, the judges received over 70 at PASHA Bank and Elizabeth White from the British Council. applications, all of which were of a very high standard. Elizabeth After this final interview, the panel agreed on the winners. White, a British Council Director, reviewed all the applications The three first prize winners, who have been awarded a personally and commented: "As a newcomer to Azerbaijan, scholarship to study summer school courses in Business and being involved in this competition for the first time, I am very Management at King's College London, are: much impressed by the quality of writing. Without exception, the applicants have devoted great care and considerable thought to Gunay Gozalova, student at Azerbaijan State Economic their essays, which display original thinking at levels which are University; Jeyhun Huseynov, student at Azerbaijan State quite remarkable for undergraduate writing". Economic University; Ismayil Mirhadi, student at Azerbaijan State Economic University; Second prize, a laptop, was Mr. Farid Akhundov, Chairman of the Executive Board of PASHA awarded to: Toghrul Novruzlu, student at Azerbaijan Bank, commented: "These interviews gave me the chance to Diplomatic Academy ; Third prize, an iPad, was awarded to: meet a highly impressive group of young people -intelligent, Zamir Salmanov, student at Qafqaz University. ambitious and full of ideas. They all showed great promise and gave me confidence in the abilities of the next generation of economists and finance specialists. I wish them all well, and look forward to seeing their careers develop in the future". There were three stages in the selection process: the initial essay review followed by two interviews. Selecting the competition winners was not an easy process given the strong motivation, intellectual ability and personal attributes of the applicants. Ten candidates reached the final stage of the process, which was an interview with Mr. Farid Akhundov, Chairman of the Executive Board of PASHA Bank, Sona Abbasova, Director of PASHA Bank's Corporate Communications Department,
61 AmCham Azerbaijan
Daring, curious, full of initiative… Stop criticizing the youth! Stop Another example: Arzu Borisova had been seeking a job almost saying "in our time…", "when we for three years. Wherever she applied, she received the same were young…" Our youth deserve response: “no vacancy”. In July of last year she came to Holcim respect, and this is the most Employment Center. As she reports, she had lost all hope. important thing. Just give them help and support at the right time. However, within a month, she received several job offers. Arzu And the "the right time" is exactly when they are searching for jobs. says, "I was so happy - they did not just offer me one job, but gave Young people are often refused jobs. Sure, there are exceptions, me a bunch of offers, and I really had a choice. I selected a job but even then employers are often reluctant. Why? There are lots according to my preferences – shop assistant in a supermarket. of reasons. Some people say that youngsters lack experience; It's interesting here. I communicate with lots of people all the time, others mention their irresponsibility and lack of respect, and and I've learned their likes and dislikes. Therefore, they often come insist that it is easier to work with older people who are more back to me for advice. I am really grateful to the Holcim specialists." predictable. Still more put forth arguments about the inability of young people to work effectively in teams, reach compromises, Holcim is continuing to help young people find work in new ways. and create a climate of tolerance at the work place. The company has developed another new program: summer internships for students. The students do their best and work But age itself is not some great achievement! But let us put hard during the internship period. They have the opportunity to aside this argument. Sure, everyone is right in his or her own work in the real world of work at critical operational facilities, way. We just need to support those who are starting out on as future engineers, mechanics and electricians. This way, their career paths. Expertise, knowledge and experience are even without a diploma, they will gain experience. This program things that everyone can obtain. But people need to know provides significant benefits to the youth, offering real practical which door to knock on – and one of those doors is Holcim’s. experience in areas of specialism that will serve them well when they are looking for jobs after graduating. With the support of Holcim (Azerbaijan), an Employment Center And there is more. Holcim Azerbaijan is implementing another was opened in Garadagh district in 2011. This was not only part program, launched in July. This is an employment program for of a very worthy mission - to give young people a start in life, in the engineering graduates from technical colleges and schools. right direction, to boost their self-confidence - but also pragmatic After the probation period, the most successful participants will step.. On one hand, it provides a human resources solution for be employed on a full time basis. The training process for the Holcim, and on the other hand, it provides a helping hand for participants is supervised by leading specialists and managers other employers with respect to access to pool of personnel. from the departments. The Center has developed special programs to improve access to employment. All the programs involve interaction "Holcim culture uncovers potential and educates managers. with employers, labor market studies, training, career Without a doubt, our goal is not only to develop existing enhancement and many other aspects. personnel, but also be on the look out for new people all the time. This program is a good basis for recruitment of young and To give a real-life example: Rufat Rajabov needed help in active specialists to our company", said HR Director of Holcim finding a profession and a job after he completed his military (Azerbaijan), Mr. Ruslan Aghabayli. service. The Center graduate said that "after military service "We piloted this program back in 2003. Since then, we have I've been searching for a job for quite a while with no success. I recruited practitioners and today they are the leading engineers am not afraid of work, but I was not eager to do dirty jobs; and of Holcim (Azerbaijan). Our company strives to create the best besides, there are too many candidates like me. Also, I did not conditions for professional development. This and our other have any other profession: I did not have a chance to complete initiatives position us as a top choice employer." professional training before the military. The Center gave me a profession, and the profession provided me with the job. I've Holcim trusts in the potential of youth, and based on their already worked for three months at a company manufacturing enthusiasm, creativity, curiosity and initiative will help them to doors and windows. I like the job very much. Now, I can think of climb the career ladder. The social elevator for the youth is on getting married. If the job's going to be successful in the future, the “ground floor” and waiting for everyone who is willing to get I'll be able to get a mortgage. Why not, when you have a job?" in. The doors are always wide open. Be brave and enter!
62 Issue 18 AmCham Azerbaijan
Members’ News and Events PASHA Travel 10 Years Anniversary Pictures, drawn by children, were sold at the auction and over 19,000 AZN raised from it was submitted to "Savab Dunyasi" Thalassemia Association, a facility that treats children with thalassemia. Natalia Solovieva, Executive Director of the PASHA Travel On June 20, 2013, PASHA Travel Agency celebrated its 10th stated, “We did not want to think only of ourselves even today. anniversary. The event was held at Four Seasons Hotel Baku. We hope that this money will help children and we will be able Representatives of embassies, large hotels, travel agencies, to reduce the number of children suffering from thalassemia at foreign visitors and other distinguished guests attended the least for a small percentage." anniversary cocktail reception. Before the start of the event, a special video with participation of children and staff members of the company was presented to the guests. General Director of PASHA Travel Agency, Anar Rahmanov, made a welcome speech. He noted that the company has managed to achieve a lot in a short time and has established itself as a reliable and professional partner. "There is an irreplaceable role of yours in our development, as we focus on our customers and partners and try to justify all the high hopes you put on us with such a high confidence," he stated. Anar Rahmanov also presented appreciation certificates to two employees, who have been working at the agency since its beginning. The highlight of the event was a charity auction featuring works of the talented students of “Child World” Painting Gallery of Youth and Children’s Art Palace named after Tofik Ismayilov.
Savalan’s range of wines adds two new varieties
In May 2013, ASPI Winery company launched two new wine varieties - Traminer semi-dry and Aleatico semi-sweet. The new wines were produced in 2012, and in June they entered local market. Traminer and Aleatico received a number of positive reviews from wine-makers and critics at the exhibition Vinitaly-2013. Traminer is the first semi-dry wine in the Savalan range.
You can find more information about new products from ASPI Winery company at our website (www.aspiwinery.az) under the heading "Products". You can buy our new wines at these local shops and restaurants:
Shops: Absheron market, (Mardakan settlement), Wine house, Tabriz street, Planet market, Wine house (near the metro station "Academy of Sciences»), City Gourmet, Star wine house.
Restaurants: 101 DAD, Niagara, Gosha Gala, Shah Palace, Gala Bazar Please go to our website for a full list of traders, under "Contact Us / Points of Sale"
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PwC Azerbaijan Welcomes a New Marketing and Communications Manager
PwC Azerbaijan welcomes its new (AmCham) in Azerbaijan. Aysel’s breadth Marketing and Communications of experience includes marketing, brand, Manager – Aysel Suleymanova, who event and project management as well took up this position in June 2013. as business development in the private and public sectors. Aysel holds a Master’s Degree in Philology and has more than 9 years of PwC Azerbaijan is committed to experience in marketing and corporate hiring the best and brightest, and to communications. creating value for its clients, people and communities in a changing world. Prior to her assignment in PwC Azerbaijan, she was in charge for Member Relations and PR for the American Chamber of Commerce
Baku Summer Energy School 2014
On July 6-20, 2013, Caspian Center for Energy and also emphasized throughout the course of the program. Environment (CCEE) of Azerbaijan Diplomatic Academy (ADA) held its 7th Baku Summer Energy School (BSES), an Also, participants had a chance to discuss challenging issues annual two-week certificate program organized in partnership with Ministers of Foreign Affairs, Energy Industry, and Ecology with the State Oil Company of the Azerbaijan Republic and Natural Resources, who were the key speakers along with (SOCAR). BSES 2013 brought together 40 participants from the Ambassadors of the Caspian littoral states and executives about 20 countries to examine and gain a better understanding of oil companies such as BP, Exxon, Shell, TOTAL and Statoil. of energy and environment issues with a focus on the wider Caspian Sea basin. In addition to the intensive academic side of the program, participants enjoyed outstanding recreational opportunities, Throughout the program, BSES participants studied a wide including swimming in the Caspian Sea. During the weekends, range of issues, such as fundamentals of energy, energy law, the summer school offered excursions to various regions of economics and politics of energy, environmental impacts, Azerbaijan and unique sites connected to Azerbaijan’s oil and and strategic management. As usual, a special focus of the gas industry of the past and present, such as the Baku-Tbilisi- program was on the Caspian Basin, including regional pipeline Ceyhan pipeline, the Sangachal oil terminal, petrocliffs in network development, geopolitics of the Caspian and its legal Gobustan, Mud Volcanoes, and the museums of Azerbaijan’s status, and the strategic outlook of SOCAR. Environmental first oil baron, Haji Zeynalabidin Tagiyev and the world- issues, as well as revenue and resource management, were renowned Nobel Brothers.
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From 3 to 5 April 2014, the Azerbaijani capital city of Baku will host the 13th Azerbaijan International Tourism and Travel Exhibition, AITF
Over the years, the exhibiton has extensive and informative business programme, which will cemented its status as a leading include public presentations, seminars and a variety of cultural international trade fair, bringing and recreational activities. together over 200 participants from 60 destinations. Furthermore, AITF is actively supported by the Ministry of Culture and following their successful show last year, national stands Tourism of the Republic of Azerbaijan. Official support from Egypt, Hungary, India, Malaysia, the UAE, Slovenia, also includes: the World Tourism Organization (WTO); Thailand, France and Montenegro are already confirming their the International Tourism Trade Association; the National participation. Confederation of Entrepreneurs (Employers') Organizations This event has become the annual meeting place for travel of Azerbaijan Republic; and the Azerbaijan Export and industry professionals in the region, and in 2014 the show Investment Promotion Foundation (AZPROMO). will once again have a large sector demostrating the tourism potential of Azerbaijan. The 8th Caucasus International Hospitality Exhibition – a dedicated event for the hospitality and restaurant industry In recent years, specialised tourism sectors have grown in in the region – will be held in the same venue as AITF. The popularity. Representatives of the Medical Tourism sector show will display an array of textile design and interior decor have been proactive in showing their interest in the exhibition. solutions, hotel cosmetics and perfumes, professional kitchen Participants include representatives from sanatoriums, health equipment, restaurant porcelain and glassware, detergents resorts and hospitals in both the CIS and Europe. Furthermore an and modern cleaning equipment, and management software increasing number of exhibitors are involved in the Real Estate for restaurant chains. Abroad sector, and this trend is projected to continue in 2014. The exhibition is organised by ITE Group plc and its partner in A distinguishing feature of the 2014 exhibition will be its Azerbaijan, Iteca Caspian LLC.
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Launching of Gazakh cement plant
Gazakh district, President Ilham Aliyev said: “The most splendid cement plant, meeting high standards, is opening in Gazakh district today. This event plays a significant role for our country as construction of such modern enterprises in Azerbaijan is strengthening the country’s economy. The technologies that are used here meet high standards. Cement that is produced here is of a high quality as well. The construction of this plant is an important step taken within the country. The economy of the country will benefit from the operation of this plant”.
Addressing the event, Chairman of the Board of Directors of Akkord Industry Construction Investment Corporation OJSC Khagani Guluzade said: “The cement plant is the Corporation’s biggest and the most important facility. The feasibility study of the project was prepared by Deloitte and Touche. Construction Akkord Industry Construction Investment Corporation was carried out at the expense of the credit allocated by the OJSC and the International Bank of Azerbaijan successfully International Bank of Azerbaijan. The total sum invested implemented an investment project – construction of Gazakh into the construction of the plant reached 225 mln AZN. The Cement Plant. In July 5, 2013 President of the Republic of carrying capacity of the facility will total 2,500 tons of clinker Azerbaijan Ilham Aliyev took part in the opening ceremony of per day and 1 mln tons of cement per year. the new production line of the Gazakh Cement Plant. The commissioning of the Akkord Cement Plant is the result The construction of the plant, with capacity 2,500 tons of of the wise policy implemented under guidance of President clinker per day and 1 million tons of cement per year, was Ilham Aliyev which has created conditions for entrepreneurial carried out in two stages. The first stage envisaged the development in the Republic of Azerbaijan. As well as supporting commissioning of cement production while the second aims the economic development of the region, the commissioning at clinker production. of the plant will ensure permanent work places for the local population, will meet domestic demand for construction Construction and installation work held within the framework materials, will contribute to the growth of export potential and will of the cement production line was completed in March of 2013 strengthen the non-oil sector of the economy”. and included cold and hot trials performed successfully on equipment. The plant produces several brands of cement for which it has already been awarded conformity certificates.
Speaking to the plant personnel and members of the public of
Deloitte named a Kennedy Vanguard leader in human capital strategy “Deloitte is helping organizations’ leaders enable their business strategies and solve their most complex business issues though its applied expertise in human capital,” said Brett Walsh, DTTL Global Leader for Human Capital. “Also, as our member firms’ Deloitte has been named a global Kennedy Vanguard leader investments in Bersin and Monitor show, Deloitte is committed in human capital strategy consulting services, based on to investing in its human capital strategy capabilities.” breadth and depth of capabilities, in Kennedy’s Human Capital Strategy Consulting 2013 report. Key findings: • Deloitte scores highest marks (#1 on list) for capability The report notes: “Deloitte continues to build on its already strengths; substantial strengths in human capital strategy consulting • Deloitte shown as advancing service breadth or depth; through acquisitions, innovative thinking, and global project • Human capital strategy consulting providers by revenue: management capabilities that support executable strategies.” Deloitte listed with the top three.
Source: Kennedy Consulting Research & Advisory; Human Capital Strategy Consulting Market; Kennedy Consulting Research & Advisory estimates © 2013 Kennedy Information, LLC.
66 Issue 18 AmCham Azerbaijan
AmCham Calendar of Activities June - September 2013
May 21 August – Human Resources Committee meeting
9 September – Banking, Finance and Insurance Committee 31 meeting September Master class on Penetrating into New Markets: Middle East Perspective 11 CEO Breakfast
September AmCham Monthly Members’ Luncheon
6 June - Seminar on “Upcoming Migration Code: 13 difficulties and opportunities”. June Back to Business 11 Cocktail with Deloitte
AmCham-British 16 September – Corporate Social Responsibility Committee Airways Cocktail meeting
18 September – Human Resources Committee meeting 12 June - Tax Conference
24 June - Corporate Social Responsibility Committee September meeting ICT Committee meeting 27 June - AmCham Monthly Members’ Luncheon 19 Round Table on Sanctions 4 July - AmCham Travel Bar Baku
July 23 September – Travel, Hospitality and Tourism Committee meeting 6 September 25
Tax and Customs Committee meeting
AmCham 18th Annual Independence Day Picnic 26 September – AmCham Monthly Members’ Luncheon
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(M2M) Discount Program
designed for our Member Companies from each Member company to driven initiative to expand M2M to to obtain as well as for the Associates obtain discounts in below mentioned something bigger and tangible. With to provide discounts on a wide range companies upon presentation of this in mind, we developed brand new of products and services from the special M2M cards. M2M+ Discount Program envisaging airline tickets to food and beverage corporate discount rates not only outlets! This AmCham initiative is M2M PLUS – CORPORATE for two delegates, but for a whole recognized as a strong promotional DISCOUNTS company within AmCham Azerbaijan vehicle aimed to add more value to AmCham Azerbaijan has recently network! companies’ membership by helping launched a new groundbreaking DISCOUNT CONDITIONS to increase the volume of sales and commercial initiative to make Please contact AmCham office, We do believe our members to save costs. membership in the Chamber even to receive more information about appreciate an opportunity to benefit more valuable. Analyzing our corporate discount packages from AmCham M2M and M2M Plus M2M – INDIVIDUAL DISCOUNTS members businesses and daily represented in M2M Plus Program Discount Programs exclusively This program allows two people operations, it was a demand-
TRAVEL, HOSPITALITY AND LEISURE GAZELLI PROFESSIONAL SERVICES - 15% discount on cosmetic products EXCELSIOR HOTEL AND SPA BAKU made by Gazelli Group at Gazelli SPA@ BIZNESINFO.AZ - 10% discount on all F&B Outlets Wellness centers. - 15% discount on all banner advertising on - 15% discount on Aura Wellness Centre biznesinfo.az Memberships and massages - 15% discount on SPA treatment at Gazelli - 25% discount for Women on Aura Evi: pilling (all kinds), wrapping (all kinds), ACT AZERBAIJAN Wellness Centre Memberships cedar barrel, hydro massage, Aroma - 10% discount on all services cabin. JUMEIRAH BILGAH BEACH HOTEL MOZAIK - 10% on F&B in all outlets SCALINI - 10% on all products - 10 % on accommodation - 10% discount on food and beverages - 10 % on Talise Spa & Fitness Center, Beach SEABAK and Waterpark (M2M and M2M Plus) SCALINI LOUNGE - up to 10% on IT Support Services - 10% discount on food and beverages - FREE migration to CLOUD.AZ Services JW MARRIOTT - 10% discount on all Food & Beverages. SUNSET INTERNET AND COMMUNICATIONS Discount is applicable maximum for 20 - 10% discount on food and beverages people per card. The card cannot be SAZZ 4G Internet applied for meetings & events held in DOUBLE COFFEE - Connect to Sazz 4G Internet and receive hotel. - 10% discount on food and beverages AX 326 Sazz USB Modem as a gift in - 10% discount on all Spa Treatments – The return for user charge (50 AZN) limit is 20 guests per card. Discount does AMAREDDINE - M2M Plus users will be presented with not apply for spa products retail. - 10% discount on food and beverages special offers on an individual basis. - 30% discount on Laundry & Cleaning. Discount is applicable for minimum on 3 WOK INN SEABAK days service. - 10% discount on food and beverages - up to 15% on Internet Services at All above discounts do not apply in LandMark and other business centers conjunction with other promotions. ZADIG & VOLTAIRE - 15% collection discount BANKING, FINANCE AND INSURANCE Kempinski Hotel Badamdar Baku Kempinski Conference and Meetings MAFRAT A GROUP INSURANCE Book a conference for 100 and more - 15% collection discount - 15% on all types of insurance participants and get an upgrade on a coffee INDIAN CLINIC break: from classic to premium SIMONETTA - 15% on medical services Coffee break classic includes: tea/coffee, - 15% collection discount assortment of cookies. Upgrade to premium REAL ESTATE includes additional sweets of the chef’s MARINELLA choice: Azeri sweets or French pastry - 15% collection discount ALTES GROUP - 5% on “Altes Group” apartments GARAGE ISKENDER PULS DRUGSTORES - 20% discount on food and beverages - 15% on all medications Education
Note: This discount will be applicable to all SEABAK AZERBAIJAN DIPLOMATIC ACADEMY items on our menu except “Business Lunch - up to 5% on IT Equipment, Cartridges and - 10% on Executive Education Corporate Menus” and “Ramadan Menus” Software Licensing Training Programs (M2M and M2M Plus)
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