Implementation of Paperless Trade in Azerbaijan

State Customs Committee Republic of Azerbaijan

Implementation of paperless trade in Azerbaijan

Prof. Igbal Babayev

Chief of Head Department of Performance Measure ment and Development Programs Major-general of customs service

Implementation domains of paperless trade

C2B Customs Business

C2G C2C Customs Government Customs Customs Main Innovation Projects on Paperless trade

1. Development of United Automated Management System

2. “SW principle” in customs procedures;

3. Time Release Study to facilitate border crossing;

4. Implementation of GPS system and integration of Target Center for better cargo tracking and border management;

5. C2B Partnership: e-Customs Services. Minimizing interaction between customs and traders through e-Customs;

6. Application of e-Signatures in customs operations;

7. Application of the Risk Management and Risk Analisys; Presidential decree “On the simplification and increase of transparency in customs procedures”

Presidential decree March 4, 2016 On additional measures in connection with continuation of reforms in the customs system Presidential Order May 21, 2016

“The Rules of using `Green Corridor` and other gating system s for the transportation of goods and vehicles across the custo ms border”

Nowadays, simplified custom procedures are one of the most important trade facilitation measures in the customs modernization process. In order to use simplified rules for goods conveyed across the customs border four corridor – “Green corridor”, “Blue corridor”, “Yellow corridor” and “Red corridor” release systems are applied at crossing points.

Infrastructure improvement and equipment provision

“e-Customs” kiosk Mobile Customs Units Key elements of development strategy

Political WILL !!!

Presidential decree No. 12 November 11, 2008

Application of the “SW principle” in inspecting the goods and v ehicles passing the state border checkpoints of the Republic of Azerbaijan Single Window principle

1st step 2nd step 3rd step

«Single Window» «Single Window» National on the for SINGLE customs border checkpoints customs clearance WINDOW

2009 2010 2011 2012 2013

Paper Electronic

Paper & Electronic Min. of Sanitrary Quarantine Veterinary Service Phitosanitary Control IAMAS DYPX Road Transport Service

Min. of Taxes Stand. and Patents

Border Service Customs Caspian Adm.

FHN, Radiation

Central Bank

Traders, Brok ers.... AZAL CARGO

Central Customs Examination Min. of Min. of Finance Economic Devel. INTERPOL IRU, SITA The role of information in the customs

Transportation Goods Control Information

Information Control Transportation Goods The preliminary exchange information between the SCC AR

20.05.2013: GUAM 30.09.2014: The Islamic Republic of Iran

15.10.2014: Uzbekistan 10.02.2016: Russian Federation The preliminary exchange information between the SCC AR M-Customs Digital Signature Facilities in Azerbaijan • Azerbaijan has built a modern digital signature infrastructure and advanced in developing eSignature-based solutions.

• The Government demonstrates strong political will and leadership for effective functioning of electronic identification and trust services.

• National Strategy for the Development of the Information Society in Azerbaijan for 2014- 2020 and a new Strategic Roadmap for the Development of ICT in Azerbaijan has been recently adopted.

eSignature in Customs Service

• Customs Service of Azerbaijan introduced digital signatures to customs declaration system from May 2016

• Facilities to sign customs declarations and other supporting documents using “Asan Imza” (Mobile ID) via mobile phones.

• “Asan İmza” (Mobile ID) enables to confirm your identity while accessing eCustoms services provided both for Asan İmza traders and individuals SIM-based digital signature system: most secure on the market. Implementing paperless trade at C2B level

CUSTOMS PROCEDURE

United Automated Management System of Customs

BUSİNESS www.customs.gov.az Customs staff Customs to Business Partnership www.customs.gov.az www.e-gov.az

9504 C2B - Customs to Business Partnership

Advance declaration of cargo (2386)

Advance declaration of transport means (9)

Appeal for customs clearance (105083 doc., 9504 org)

Suggestions, comments and appeals (701)

Appeals to Central Customs Examination Department (170)

Softcopies of customs clearance documents (4514) e-Customs declaration system www.customs.gov.az www.gov.az

e-Declaration Customs Declarations (for Passengers)

Total: 32998 Azerbaijan: - 20992 Foreigners. - 12006

4000 3636 3500 3319 3229 3285 2990 2959 3000 2723 2624 2460 2500 2228 2151 2000

1500 1394

1000

500

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nature of controlling agencies of business

Service-oriented state agencies

CONTROL SERVICES

Challenges for Paperless Trade

• The lack of an appropriate platform for settlement of disputes using electronic means in the country

• The practice of electronic invoicing is not widely spread in Azerbaijan and there is no solid technical platforms for it.

Thank you for your attention!

[email protected] “Trade Facilitation Post-Bali: Putting Policy into Practice”

• WTO Bali Package and its impact on Customs; • Customs-business partnerships and trusted trader schemes; • Customs-academia partnerships in research and educational programs; • Trade facilitation in emergency and disaster relief situations; • Infrastructure and regional aspects of trade facilitation; • Facilitation through electronic trade and customs systems; • Customs capacity building and development; • Cross-border compliance costs; • Cooperative border management; and • Other relevant customs related research. First Global Conference of International Network of Customs Universities. May, 21-23, 2014. Baku

II CONFERENCE INCU -2017

“Youth Dialogue – Capacity Building through Enhancing International Customs Cooperation”.

3-7 July 2017 BAKU, AZERBAIJAN