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Binding Rulings A Word from the Executive Director of AmCham Dear Readers, Summer / Issue 6 Striving to be up to date with the latest changes in the legislation affecting our members, we are the first to bring to your attention a topic that is probably the most Credits relevant for all this summer - new migration procedures, introduced by the Government of Azerbaijan with effect Editor-in-Chief: from July 1st 2009. Interviews with the Head of the State Nargiz Nasrullayeva-Muduroglu Migration Service, Chief of Labour Policy Department Editor: and Chief of Reimbursement and Labour Relations of the Emma Triller Ministry of Labour provide the Government's perspective on the question of labour and employment of both local Design & layout: and foreign nationals. QuadroM Media Agency Another important piece of legislation highlighted in this Photographers: issue is the New Customs Code. Do not miss an expert Dena Barmas overview of the changes that the new code brings and the Huseyn Asim-zadeh prognosis on its adoption. Journalist: We are very happy with the way this issue has turned out Ayten Aliyeva and hope that you will agree with us. Contributors: Kind regards, Natalia Corobco Jim Dillahunty Nargiz Nasrullayeva-Muduroglu Michael Kunz Emil Garayev Narmin Mirzazade Natik Mamedov Brian O’Shea Editor’s Comment Advertisers: Dear Readers, Ace Forwarding Caspian Austrian Air As our cover suggests, we have spent the last few months Azercell grappling with the impending procedural changes in the Bakcell migration process, new legislation and amendments to Baker & McKenzie existing legislation. We should like to express our gratitude Holiday Inn Baku Airport to the Ministry of Labor and the State Migration Service for Hyatt Hotels providing answers to questions on these issues. Mozaik LLC Nipro’s Allied’s International While we applaud and welcome the initiative to streamline Nobeil Oil procedures and increase the ease of application for migration Royal Bank and labor permits, we initially found it difficult to find reliable Shieldbearer and precise information. This has changed. Our interview Cover artwork: with the Head of the State Migration Service and indeed his © McCann Erickson Azerbaijan presentation at our Members’ luncheon mark an important milestone in AmCham’s dialog with the Government, Printing: opening a long desired channel of communication. We Nurlar welcome this very positive development and look forward to increased cooperation with Government agencies to work Publisher: toward our common goal of strengthening the economy and American Chamber of Commerce promoting prosperity through a healthy business climate. in Azerbaijan Tel: (+994 12) 497 13 33 We shall be in communication with the State Migration Fax: (+994 12) 497 10 91 Service to further clarify issues arising from the release of www.amchamaz.org this information. Advertising opportunities: We thank all contributing editors and advertisers for their Please contact the Editor unfailing support of Impact. We hope this issue will be the Emma Triller perfect flight companion on your travels this summer. [email protected] Tel: (+994 12) 497 13 33 Have a wonderful vacation! The articles in IMPACT AZERBAIJAN Emma Triller express the opinions of the authors and do not necessarily reflect the position of the American Chamber of Commerce in Azerbaijan. 1 contents IN FOCUS 4 Interview: State Migration Service 9 Azerbaijan: Human Capital Development By Natalia Corobco The imminent implementation of a one window policy and the overhaul of application How to design a strategy for human capital procedures for a residence visa/work permit development in Azerbaijan? have given rise to many questions and An in-depth analysis of talent management concerns. Mr. Arzu Rahimov gives information in the new economy: Current Trends, which will clarify the issue. Opportunities, and Areas for Improvement. 8 Interview: Ministry of Labor 14 Azerbaijan’s New Customs Code By Brian O’Shea Changes to the Customs Code may provide a solution to the problems facing importers in Azerbaijan. 18 Customer Service: Part III: The Flow of Information By Jim Dillahaunty Mr. Eldar Mammadov and Mr. Abulfat The third in the 3 part series on Customer Magerramov Labor Policy Department Service discusses the art of gathering provide answers to some of our most pressing insightful and useful information from your questions about amendments to the Labor customers and the flow of information Code. between an organization and its customers. 2 Summer / Issue 6 contents MEMBERS AMCHAM AZERBAIJAN 20 Interview: Alinaghi Asghari, Chairman, 30 About us AmCham Tax & Customs Committee Committees play an important role in sharing information, raising issues of common concern and proposing possible solutions. How can they be made more effective? 22 Azerbaijan Introduces Preferential Regime for Oil and Gas Industry As a member of AmCham, your company has access to a vast network of business information and contacts. 31 AmCham Structure 32 AmCham at home We had the very great pleasure to be addressed by Ambassador Richard Morningstar on the U.S. Government’s New legislation to benefit oil and gas contractors energy policy in the Caspian region and subcontractors is to be introduced. Effective implementation will depend upon the prevention of overly subjective assessment and the timely 33 Caspian Oil & Gas Exhibition release of information to potential beneficiaries. 24 Real Estate Opportunities: New Trends in Residential & Commercial Development This article discusses the Azerbaijani law issues associated with recent market developments and legislative initiatives designed to bolster market development and promote real estate investment in Azerbaijan. 34 AmCham abroad: ECACC Conference 28 Business Leaders Join Efforts to Advance Reform through WTO 35 Business Events 39 Committee Highlights 42 Members’ News and Events 45 AmCham Projects: Consumer Price Index Report for 2009 Website Updates 47 M2M Discount Program 3 in focus Interview: Arzu Rahimov, Head of State Migration Service In order to improve the mechanism of migration Impact was granted an interview management and to simplify the procedures for granting permissions to foreigners and with Mr. Arzu Rahimov, Head stateless persons for lawful residence and engaging in work activity, as well as to ensure of the State Migration Service transparency in this sphere, the President of the Republic of Azerbaijan signed a Decree on of Azerbaijan. He answered Application of the “Single Window” Principle in migration management from 1 July 2009. our questions about application The State Migration Service of the Republic of Azerbaijan was appointed as a unit body procedures for the combination implementing the “Single Window” principle. We asked the Chief of the State Migration work and residence permit card. Service of the Republic of Azerbaijan Mr. Arzu Rahimov to answer our questions about recent changes made in the migration management 4 Summer / Issue 6 in focus mechanism, and appeal procedures for obtaining cards and required documents. What are the appeal procedures for obtaining residence cards and work permits and which documents should be submitted to the State Migration Service? What is the duration of the process? First of all, I want to clarify the reasons for such changes. As you know, the economic growth, rapid development of the oil and non-oil sector and huge investment opportunities attract foreigners to Azerbaijan. Regulation of migration processes and insurance of transparency are the main purposes of these changes. This Decree simplifies this process. Concerning the relevant required documents, all information is presented on the official Internet site of the State Migration Service www.migration.gov.az. The English version of the website will be available from 15 June. Consideration of the documents should take 20 working days from the date of submission of documents to the State Migration Service. If before foreigners had to apply to different ministries and relevant bodies for obtaining cards, now related to these issues he/she will apply only to the State Migration Service. There are foreigners working some days offshore and some days onshore. What are the procedures for them? The foreigners arriving in and working in the Republic of Azerbaijan need to obtain cards for lawful temporary residence and engaging in labor activity. If the validity period of card is expired and the foreigner hasn’t completed his/her work, he/she has to apply to the State Migration Service for extension of the period of temporary residence card and work permit indicating the purpose of extension. For this purpose the foreigner must submit a letter from the organization indicating the reasons. If the foreigner enters If the foreigner has obtained a temporary residence card from the country as a labor migrant under a visa regime for a the State Migration Service, if he/she has notification, and if period of 30 days within 30 days he/she has to apply to the we have the list of such persons we will gradually invite and State Migration Service in order to legalize his/her staying provide them with a new cards. in the country. After relevant procedures, this foreigner will be provided with the temporary residence card and work Do you have enough resources to cope with the huge permit. flood of applications after 1 July? We would not start a process if we were not sure of our What will the procedure be for a foreigner who has resources and opportunities. terminated a contract with one company and concluded a contract with another one? Is the new card valid for all entry points by air, land and If the foreigner has terminated his contract with one company sea? and concluded a contract with another one, the first company Yes. At the borders of all types of transport there are border must inform us about termination of the contract. Then the control points. foreigner must submit the copy of the contract concluded with the other company and after this he/she can obtain a new A medical certificate is one of the required documents.
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