A Word from the Executive Director of AmCham

Dear AmCham Members and Friends,

I am delighted to introduce the 19th issue of IMPACT Azerbaijan. Issue 19 This edition focuses on a topic that is of vital importance to the country’s present and future development – the medical and Credits healthcare system. In March 2013, AmCham addressed the State Customs Committee AmCham Executive Director: and Ministry of Health, in order to open a discussion about counterfeit Nargiz Nasrullayeva-Muduroglu and illegal parallel import products. This is part of our ongoing efforts to protect the pharmaceuticals market in Azerbaijan. In its appeal to Editor: the Minister of Health, AmCham requested stricter measures or restrictions on these types Jeyhun Atayev of products. As a result, AmCham was pleased to observe a positive change in the approach of the relevant ministries. As a consequence of AmCham’s appeal, regulation of pharmacies Articles contributed by: was tightened - in April 2013, the President of Azerbaijan approved amendments to the Law on Medicines. Under these changes, all medicines must bear the control marks of the relevant Sevinj Aliyeva executive authority, which is the Ministry of Health. In November AmCham met with Mr. Abulfaz Rustam Gasimov Abdullazadeh, Head of Analytical Expertise Centre for Medicines, to discuss the general action Aysel Suleymanova plan and the current situation in the market. We agreed to co-operate further on combating the Nuran Kerimov and Gunel Sadiyeva import of the illegal and counterfeit medicines. Later in 2013, AmCham also had a meeting with Guivami Rahimli and Kenan Shikhlinsky Jamil Aliyev, Head of the National Oncology Center, who shared our concerns and assured Hokuma Karimova AmCham of his support in further endeavors towards healthcare development. In this issue of IMPACT, we are proud to present our exclusive interview with Elsever Aghayev, Advertisers: Deputy Minister of Health, in which he touches upon various key issues, including the recent The Landmark Hotel major changes to Azerbaijan’s medical and healthcare legislation, the pharmaceutical Bakcell market, and the enforcement of mandatory medical insurance in Azerbaijan. Azerbaijan Diplomatic Academy YapiKredi Bank Azerbaijan The current issue also provides several fascinating member contributions, as well as an overview of AmCham events and activities from autumn 2013. GAZELLI GROUP Human Resource Company (HRC) I would like to take this opportunity to thank all of our counterparts and members for Mozaik their support for the development of the healthcare system as well as their ongoing ITECA Caspian LLC participation in magazine’s creation. I am sure that you will find this issue of Impact Azerbaijan informative and interesting! Printing: Kind regards, Nurlar Nargiz Nasrullayeva-Muduroglu Publisher: American Chamber of Commerce Editor’s Comment in Azerbaijan Dear Readers, Tel: (+994 12) 497 13 33 Fax: (+994 12) 497 10 91 I am very happy to welcome you to the 19th issue of IMPACT www.amchamaz.org Azerbaijan. I have really enjoyed working on it, partly because as a child, I wanted to be a doctor. This issue, in a way, allowed me to get a little bit closer to that childhood dream. Nowadays, the healthcare Advertising opportunities: system is not only about how people manage their health in their Please contact the Editor at everyday lives but also how they interact with the healthcare system [email protected] more broadly. Of course, this requires a new perspective on the Tel: (+994 12) 497 13 33 governance of health. In this issue you will find an interview on the recent reforms, new perspectives on the medical and healthcare The articles in IMPACT AZERBAIJAN system, and an article about the challenges and opportunities for the pharmaceutical market in Azerbaijan. express the opinions of the authors and do not necessarily reflect the position of In addition, you will find articles on the new Inspection Law and Foreign Account Tax the American Chamber of Commerce in Compliance Act, as well as information on projects aimed at the development of youth Azerbaijan. business and the training of world class project managers in Azerbaijan.

As ever, I would like to thank all our contributors; we at AmCham greatly appreciate the outstanding support and assistance we receive from all of you.

Happy reading! Jeyhun Atayev

1 contents

IN FOCUS AMCHAM AZERBAIJAN 4 Interview with Elsever 45 About Us Aghayev, Deputy Minister of Health 46 Government Relations

22 Pharmaceutical market in Azerbaijan: challenges and opportunities 47 Business Events

MEMBER CONTRIBUTION

27 A new inspection law: a step forward 49 Projects

50 15 years with AmCham: more than membership

31 FATCA and its impact on Azerbaijani financial 52 Committee Highlights institutions

38 The Mirror Effect - or What do 54 AmCham Legal Update I Look like on the Market?

56 Social Events 9th Annual Black & White Ball DEVELOPMENT AND EDUCATION

40 Contributing to training of world class project managers in Azerbaijan 58 Members’ News and Events

61 US Visa facilitation program 43 Investing in Tomorrow’s Employees 63 AmCham Calendar of Activities

64 (M2M) Discount Program

2 Issue 19

in focus

Interview with Mr. Elsever Aghayev Deputy Minister of Health of the Republic of Azerbaijan on the recent reforms and perspectives on the medical and healthcare system

Mr. Aghayev, I want to thank you for taking the time to improving child health and the relevant treatment-prevention speak with us today. Could you please update us on the measures, and governs relationships in this sphere. In this recent major changes to Azerbaijan’s the medical and regard, the President signed a Decree dated 10.04.2013 healthcare legislation? on the enforcement of the law, and the "State Program on In 2013, a number of regulatory and legal documents regarding Mandatory Medical Examination of Children" was adopted healthcare have been adopted to better protect public health. on 10.12.2013. Furthermore, the guidelines on measures Here, I will note both the adoption of new legislative acts and relating to mandatory medical examinations of children were also the amendments made to the current legislation. One of incorporated into the "Regulations on the Ministry of Health these new laws is the Law "On Mandatory Annual Medical of Republic of Azerbaijan". Decisions have been reached Examination of Children" (05.03.2013). The present Law on both the "Manner of keeping records on children who are stipulates the organizational-legal grounds for protecting and expected to be examined or have already been examined by

4 Issue 19 in focus

the Ministry of Health of the Republic of Azerbaijan” and the "listing of the diagnoses and specialists expected to conduct the mandatory medical examinations of children". Under the Law "On amendments to the Law of the Republic of Azerbaijan "On medications" (22.02.2013), a control mark on the proper medication is required. For this reason, the Instructive Order (10.04.2013) of the President of the Republic of Azerbaijan on enforcement of the law was signed, and the relevant amendments were made to the "Rules on state registration and maintaining a registry of medications", in accordance with the resolution dated 12.07.2013 of the Cabinet of Ministers. According to the Law dated 31.05.2013, amendments were made to the Code of Administrative Offences, establishing responsibility for illegally carrying out Cesarean section surgery. The penalty for carrying out a Cesarean section without medical grounds is 5000-7000 AZN for high-ranking surgeons and 10,000-15,000 AZN for legal entities. In connection with the above, amendments have also been made to the Law "On Protecting the Health of the Population" and to the Regulation of the Ministry of Health. The Ministry of Health of the Republic of Azerbaijan has defined the medical 2013. Also, new processes for certifying medical staff grounds for conducting a Cesarean section. have recently begun. Could you update us on these procedures? What is the extent of the human resources According to the resolution dated 21.11.2013 of the Cabinet potential in the medical sector? Can all the medical of Ministers, "Rules on the Manner and Organization of institutions in Azerbaijan solve their staffing needs and Residency" have been amended. what is the situation on staffing provision and activities In relation to the Law "On Education", the previous rules across different regions of the country? adopted in 2010 failed to fully encompass some issues related to residency, but the new revised rules have further upgraded One of the key ways to bring our healthcare to the highest the requirements for residency and contain some guidelines international standards is via medical education and regarding points of concern. staffing reforms. The Ministry has recently taken substantial According to the resolution dated 18.04.2013 of the Cabinet of measures in this sector. As you may be aware, we began the Ministers, the "Rules on medical and psychological assistance internationally recognized certification of our medical staff in for detainees or imprisoned persons as well as their treatment January 2011. Certification helps to provide the public with in medical centers" were approved. high-quality medical services. It enhances the professionalism These rules govern issues related to the diagnosis, treatment and professional qualifications of persons dealing with practical and prevention methods, sanitary-hygiene, anti-epidemic and medical or pharmaceutical activities, as well as developing psychological measures in respect to detainees or imprisoned the theoretical and practical capacity of doctors and general persons. medical staff. Certification helps highly educated specialists Resolutions by the Board of the Ministry of Health have to become involved in medical or pharmaceutical activities. approved "Rules on giving opinions on the advertisement Improving the quality of public medical services through of medical services provided by private health facilities and reforms to the healthcare system is a major and vital issue. the issuance of non-prescribed medications" as well as 21 The quality index uses criteria of efficiency and effectiveness administrative regulations on Ministry of Health e-services. to assess the medical services in every medical institution as well as the health system in general. Where can persons and patients file appeals if they One of the major influences on the quality of medical services encounter problems in medical institutions? is the staffing of medical institutions and professionalism of If patients encounter any legal violations in medical institutions, medical workers. they can call the Ministry of Health hotline, appeal in writing (details under the "Correspondence" section on the official The recently implemented reforms and measures have webpage of the Ministry of Health), use the "161-Hotline" to enabled huge achievements in the development of healthcare contact the Center of the Anti-Corruption Department under in Azerbaijan, providing high level medical services, and the Prosecutor-General’s Office, or appeal to competent preparing medical workers. To further improve the medical courts. services, new treatment and diagnostics centers equipped with state-of-the-art medical facilities and technologies have The Ministry held meetings with the medical staff been commissioned, and renovations have been carried out in employed by medical institutions on the new rules in functioning medical institutions. To provide clinics with highly

5 in focus

qualified medical staff and to integrate the national system with specialists in 1, 3 or 6-month professional development the international framework, numerous Azerbaijani specialists courses abroad at the expense of the state within the terms of have participated in training courses in the leading clinics of bilateral understandings and memoranda. various countries, including Turkey, Germany, France, Russia, and Belarus. We currently have a significant number of young Sending young specialists abroad for professional doctors conducting complex operations and successfully development courses at state expense was a rare in the performing organ transplants in Azerbaijan. In my opinion, past. Usually, private clinics managers would send their Azerbaijan has a strong cadre of young doctors, who can specialists to foreign countries via their personal contacts, but bring our country's healthcare system to greater heights. this phenomenon was not widespread and access the most prestigious international universities was less common. By Nevertheless, there are still some problems remaining virtue of the Ministry of Health’s recent work, memoranda of regarding staffing in the regions. Unlike our capital city, understanding on exchange of medical professionals have there is a lack of qualified specialists able to use state-of- been signed with Germany, Turkey, Russia, and Belarus, the-art equipment in the new medical institutions already among others. Based on these agreements, a large number commissioned for use. We have some imbalances between of young specialists have been able to increase their scientific towns and villages in terms of human resources, and some and practical knowledge in the top universities in those problems regarding the satisfactory organization and provision countries. of medical services in some spheres. In this regard, following Following the mutual understandings concluded between the the Resolution of the Cabinet of Ministers dated 05.08.2009, Ministry of Health and some countries, prominent specialists on measures to stimulate employment of medical workers by from such countries are also being invited to Azerbaijan to the medical institutions and to strengthen human resource lead courses for our medical staff. The implementation of potential across the regions and eliminate the shortage of both theoretical and practical workshops in Azerbaijan by healthcare professionals, the "Development Program on the professors and teaching staff, experts, and doctors from provision of medical institutions with healthcare professionals Germany, Poland, Russia, Turkey, Belarus and other countries in 2010-2014" was developed, and approved by the Cabinet allows us to build on the achievements already made in the of Ministers on June 24 2010. This program is of special medical sector. importance in regard to improving provision of medical staff in The priority areas for our healthcare system are taken into the Republic of Azerbaijan. account while sending young medical professionals abroad or The employment of medical professionals in the country inviting specialists to our country. The particular focus here is done via interview on a centralized basis, which helps to is on developing priorities such as organization of hospitals, promote transparency, eliminate negative outcomes, and radiodiagnosis, anesthesiology, hematology, reproductive provide doctors with a level playing field when it comes to health, child cardio-surgery, invasive cardiology, transplants, employment opportunities. and other areas. Generally speaking, substantial achievements have been My next question touches upon human resources. As made recently in promoting the knowledge and experience of you know, a State Program is being implemented on our medical system, with new agreements being signed and education of Azerbaijani youth abroad in 2007-2015. the terms of previous agreements extended. Within this program, what percentage of students are Participants in these programs are required to present detailed studying medical and healthcare disciplines? How does and rigorous reports upon their return home. The young the Ministry of Health collaborate with the Ministry specialists update the medical institutions on the knowledge of Education, and does it give any recommendations and treatment methods they have acquired and suggest ways or participate in the interview process? What are to develop medical services and education in Azerbaijan. the employment statistics for Azerbaijani specialists These professional development courses are proving to be returning from studying abroad? And what is the situation very effective for our healthcare specialists, who are able to regarding the employment of foreign nationals by private gain huge scientific and practical experience in short period. clinics, and have you set quotas for foreign doctors? This serves the current and future development of Azerbaijan. Recently, the professional development of medical institutions, along with the number of young medical practitioners going Mr. Aghayev, how do you assess our pharmaceutical abroad to develop their scientific and practical knowledge market? Are there problems with counterfeit medications? in the prestigious universities of Europe has increased. The If this is a concern, are the current countermeasures President’s Instructive Order dated October 19 2006 on the adequate? approval of the "State Program on education of Azerbaijani The current status of the pharmaceutical market is satisfactory. youth in foreign countries in 2007-2015" has had a pivotal role, Currently, the Analytical Expertise Center under the Ministry as in the preparation of highly qualified medical professionals. of Health oversees the legal and organizational aspects of So, based on the requirements of this Instructive Order, the handling medications and medical means as stipulated by Ministry of Health systemized and intensified its work in this the Law "On Medications"; the quality, efficiency and safety direction. The Ministry pursues initiatives to involve young of medications; and the compliance of pharmaceutical

6 Issue 19 in focus

companies with the relevant regulations. The Analytical approved by the Ministry of Health. Nevertheless, inspections Expertise Center conducted inspections at the pharmaceutical reveal that medications are still appearing without instructions companies working in the country in 2013. Based on the for use in Azerbaijani. The Analytical Expertise Center information obtained from the single entrepreneurship data takes relevant measures, for instance by withdrawing non- registry on the registration of inspections, inspections were compliant products from sale, and issuing penalties against carried out in 270 drugstores, 5 of which were found to be such drugstores according to the legislation. Consumers are engaged in pharmaceutical business without the necessary requested to contact the Ministry of Health via the hotline if the permit (license). As a result of the raids, 8601 boxes without instructions for use are not in Azeri. state registration and/or analysis protocols on suitability for use and 65 expired medications were discovered and What do you think about the single control mark and draft confiscated. During the inspections, 11 protocols were written pricing of the pharmaceutical products passed by the for issuance of medications without prescriptions or violations Cabinet of Ministers? of rules on the sale of medications to underage persons in As you know, the President enacted an Instructive Order drugstores. The most pressing problem in current markets is on amendments to the Law "On Protection of Consumer the availability of medications without state registration. At the Interests" on June 29 2012. Under that law, the following moment, the Ministry of Health and law-enforcement bodies are required to carry a control mark: audiovisual works, are carrying out serious work in this sphere. phonograms, computer programs, data collections, copies of books and other copyrights and objects of associated rights; As we all know, although the information on all the religious literature (in hardcopy and electronic forms), audio pharmaceutical products in Azerbaijan should be provided and video materials, goods and items and other religious in Azeri, some of the papers inside the medication boxes information materials. The President also signed a law on are published in different languages. How is this parallel amendments and additions to the Law "On Medications" in import issue regulated? April this year. Under this law, Article 8.2 was incorporated into Early in 2012, the Ministry of Health warned medication the Law "On Medications" of the Republic of Azerbaijan, and it manufacturers and importers that it is imperative to provide reads as follows: "The relevant executive authority shall attach information on the instructions for use in Azerbaijani. The a control mark to medications". The control mark may also be number of medications with state registration is presently 4300; seen as connoting the state registration of the medication, its their instructions have been translated into Azerbaijani and quality, safety and effectiveness. After the rules are approved,

7 in focus

organizations and agencies according to the international treaties to which Republic of Azerbaijan is a party. These include the World Health Organization, Global Foundation, UNICEF, Development Fund of the United States of America, TICA, Japan, JICA, Vishnevskaya-Rostropovich Fund, and so on. Along with government agencies, NGOs take part in healthcare programs, as in Europe and the US. NGOS work via the "Country Liaison Mechanism", as the Executive Body of Global Foundation, on a 50/50 basis. Further, Japan's "grass roots and human safety" projects aim to rehabilitate initial healthcare institutions in some regions of the world. Here also, the main executors are NGOs. Publicizing projects and the active involvement of civil societies play a crucial role. A number of international organizations are also members of the American Chamber of Commerce. We are ready to collaborate if those agencies have any projects and programs in healthcare and social spheres.

What is the situation on enforcement of mandatory medical insurance in Azerbaijan? control marks will be attached to the medications under state Following the Instructive Order 2592 dated December 27 registration while they are imported. In regard to the single 2007 of the President of the Republic of Azerbaijan, the pricing structure, international practice was referenced while State Agency on Mandatory Medical Insurance was set up developing draft pricing proposals, which anticipate uniform under the Cabinet of Ministers. Expediting measures relating pricing of all medications on sale. They will have prices on them. to the enforcement of mandatory medical insurance in the Practices from of Turkey, Europe and some other countries healthcare system was incorporated into the "National Action were reviewed and analyzed, and final draft proposals were Plan on Combatting Corruption in 2012-2015" as approved by prepared together with the Ministry of Economic Development the President of the Republic of Azerbaijan as a separate item. and submitted to the Government. It is expected that prices The enforcement of the mandatory medical insurance system will be regulated and fixed by the Tariffs Council based on the will only be possible after the abovementioned Agency is set Rules pending approval. It is highly unlikely that any decision up and becomes operational. will be made on these issues by the end of the year, since there are a number of technical issues to be addressed. Private medical institutions of Azerbaijan charge different prices for the same services. In some institutions, service At the present, different services are being offered within fees are extremely expensive. Can the Ministry of Health "E-Government" in Azerbaijan, some of which are aimed participate and regulate this process of fixing prices at at citizens and some others at the business sector. Which private medical institutions? In general, could you update electronic services does the Ministry of Health provide? our readers on the standards established for such private Are there any more e-services in the pipeline? healthcare institutions? Under the Resolution 191 dated November 24 2011 of the Payment for medical assistance at private healthcare Cabinet of Ministers on "Approval of the "Rules on e-services institutions in Azerbaijan is governed by Item 13 of the in concrete spheres by the central executive power" and Law dated December 30 1999 "On Private Medical Work". "Listing of types of E-services", 38 services were assigned Tariffs of the medical services provided within the frame of to the Ministry of Health. 28 of these e-services have been the agreements signed between citizens and organizations developed and commissioned for use and 10 e-services are (including insurance organizations providing medical services expected to be commissioned for use by early 2014. on voluntary medical insurance) are set by mutual agreement between parties. Regardless of whether these private patients Mr. Aghayev, the Ministry collaborates with organizations are participating in the mandatory medical insurance scheme, beyond state agencies such as international and non- payment for emergency medical aid for persons in need of governmental organizations and business associations. such aid is made by the medical insurance organization based Could you share your views on the role of this on the rules of mandatory medical insurance. cooperation? How do you see the cooperation between the Ministry of Health and business associations, and the Mr. Aghayev, thank you for the interview. American Chamber of Commerce in particular? Within the framework of the healthcare reforms implemented In case of discrepancy between the texts in the English in the Republic of Azerbaijan, we have established language and the Azerbaijani language, the Azerbaijani text productive lines of cooperation with a number of international shall prevail under all circumstances.

8 Issue 19

in focus

Azərbaycan Respublikasının Səhiyyə Nazirin Müavini

Azərbaycanda Amerika Ticarət Palatasının “IMPACT Azerbaijan” jurnalına tibb və səhiyyə sahəsində son zaman aparılan islahatlar və perspektivləri barədə müsahibəsi

Salam, Elsevər müəllim. Əvvəla bizim jurnala zaman Bunlardan: “Uşaqların icbari dispanserizasiyası haqqında” ayırdığınız üçün Sizə təşəkkür edirik. Azərbaycanda Azərbaycan Respublikasının Qanunu. (05.03.2013) Bu Qanun bu yaxınlarda tibb və səhiyyə qanunvericiliyində əsas uşaqların sağlamlığının qorunması və möhkəmləndirilməsinin dəyişiklər barəsində məlumat verməyinizi xahiş edərdim. təşkilati-hüquqi əsaslarını, uşaqlar arasında aparılan müalicə- 2013-cü il ərzində əhalinin sağlamlığının qorunması sahəsində profilaktika tədbirlərini müəyyən edir və bu sahədə yaranan hüquqi tənzimləmənin həyata keçirilməsi məqsədilə səhiyyəyə münasibətləri tənzimləyir. Bununla əlaqədar həmin qanunun dair bir sıra normativ hüquqi sənədlər qəbul edilmişdir. Burada tətbiqinə dair Azərbaycan Respublikası Prezidentinin həm yeni qanunvericilik aktlarının qəbulunu həm də mövcud 10.04.2013-cü il tarixli Fərmanı imzalanmış, 10.12.2013-cü il qanunvericiliyə dəyişikliklərin edilməsini qeyd etmək olar. tarixli “Uşaqların icbari dispanserizasiyadan keçirilməsinə dair

10 Issue 19

in focus

Dövlət Proqramı” təsdiq edilmişdir. Eyni zamanda “Azərbaycan nəzərdə tutulub. Respublikasının Səhiyyə Nazirliyi haqqında Əsasnamə”yə Bundan əlavə “Əhalinin sağlamlığının qorunması haqqında” uşaqların icbari dispanserizasiyasına dair tədbirləri və bu Azərbaycan Respublikasının Qanununa və Səhiyyə Nazirliyi sahəyə nəzarətin həyata keçirilməsini əks etdirən müddəalar haqqında əsasnaməyə qeyd olunan məsələ ilə bağlı müvafiq əlavə edilmişdir. Azərbaycan Respublikasının Səhiyyə dəyişiklik edilmişdir. Nazirliyi tərəfindən dispanserizasiyadan keçiriləcək və Eyni zamanda Azərbaycan Respublikasının Səhiyyə Nazirliyi dispanserizasiyadan keçmiş uşaqların uçotu qaydası” və tərəfindən qeysəriyyə kəsiyi əməliyyatının aparılmasının tibbi “Uşaqların icbari dispanserizasiyası zamanı müayinələrin və əsasları müəyyən olunmuşdur. baxış keçirəcək ixtisaslı mütəxəssislərin siyahısı” müəyyən Azərbaycan Respublikası Nazirlər Kabinetinin 21.11.2013-cü edilmişdir. “Dərman vasitələri haqqında” Azərbaycan il tarixli qərarı ilə “Rezidentura təhsilinin məzmunu və təşkili Respublikasının Qanununda dəyişikliklər edilməsi barədə” Qaydaları” yeni redaksiyada təsdiq edilmişdir. Azərbaycan Respublikasının Qanunu. (22.02.2013). Bu “Təhsil haqqında” Azərbaycan Respublikasının Qanununa dəyişikliklə qeyd olunan qanuna dərman vasitələrinin üzərinə əsasən 2010-cu ildə qəbul edilmiş əvvəlki qaydalarda müvafiq icra hakimiyyəti orqanı tərəfindən verilən nəzarət rezidentura təhsili ilə bağlı bəzi məsələlər tam açıqlanmamışdır. markasının yapışdırılmasını tələb edən norma daxil edilmişdir. Yenilənmiş qaydalarda rezidentura təhsilinin tənzimlənməsi Bununla əlaqədar həmin qanunun tətbiqinə dair Azərbaycan daha da təkmilləşmiş, sual doğuran məsələlərlə bağlı Respublikası Prezidentinin 10.04.2013-cü il tarixli Sərəncamı müddəalar əks olunmuşdur. imzalanmış, Azərbaycan Respublikası Nazirlər Kabinetinin Azərbaycan Respublikası Nazirlər Kabinetinin 18.04.2013- 12.07.2013-cü il tarixli qərarı ilə “Dərman vasitələrinin dövlət cü il tarixli qərarı ilə “Tutulmuş və ya həbs edilmiş şəxslərə qeydiyyatına alınması və reyestrinin aparılması Qaydaları”na tibbi və psixoloji yardım göstərilməsi, habelə onların tibb müvafiq dəyişiklik edilmişdir. müəssisələrində saxlanılması Qaydaları” təsdiq edilmişdir. Azərbaycan Respublikasının 31.05.2013-cü il tarixli Qanunu Bu qaydalar tutulmuş və ya həbs edilmiş şəxslər barəsindətibbi ilə İnzibati Xətalar Məcəlləsinə dəyişiklik edilərək qeysəriyyə müayinə, müalicə-profilaktika, sanitariya-gigiyena, epidemiya kəsiyi əməliyyatının qanunsuz aparılmasına görə məsuliyyət əleyhinə və psixoloji tədbirlərin həyata keçrilməsi ilə bağlı müəyyən edən maddə əlavə edilmişdir. məsələləri tənzimləyir. Belə ki, tibbi əsaslar olmadan qeysəriyyə kəsiyi əməliyyatının Azərbaycan Respublikası Səhiyyə Nazirliyinin Kollegiyasının aparılmasına görə vəzifəli şəxslərin beş min manatdan qərarları ilə “Özəl tibb fəaliyyəti subyektləri tərəfindən yeddi min manatadək miqdarda, hüquqi şəxslərin isə on min göstərilən tibbi xidmətlərin və həkim resepti olmadan buraxılan manatdan on beş min manatadək miqdarda cərimə ediləcəkləri dərman vasitələrinin reklamına rəy verilməsi qaydası” və

12 Issue 19

in focus

Azərbaycan Respublikasının Səhiyyə Nazirliyi tərəfindən həyata keçirilməsinə başlanılmışdır. Sertifikasiya əhaliyə göstərilən elektron xidmətlər üzrə 21 inzibati reqlamenttəsdiq keyfiyyətli səhiyyə xidmətinin göstərilməsi, ölkədə praktik tibb edilmişdir. və ya əczaçılıq fəaliyyəti ilə məşğul olan şəxslərin peşəkarlıq səviyyəsinin və peşə yararlığının artırılması məqsədi ilə həyata Tibb müəssisələrində hər hansı bir problemlə üzləşən keçirilir, həkim və orta tibb işçilərinin nəzəri və təcrübi bilik və şəxslər və pasientlər hara müraciət edə bilərlər? bacarıqlarını daha da artırmalarına imkan yaradır. Bir sözlə Pasiyentlər tibb müəssisələrində hər hansı bir qanun demək olar ki, sertifikasiya – yalnız savadlı mütəxəssislərin pozuntusu ilə üzləşərsə Səhiyyə Nazirliyinin “Qaynar xətt” praktiki tibb və ya əczaçılıq fəaliyyəti ilə məşğul olmasına xidmətinə, Nazirliyin rəsmi internet saytındakı “Məktub xidmət edir. Azərbaycan Respublikası səhiyyə sistemində yazmaq” bölməsinə, aidiyyəti üzrə ərizə forması ilə, Baş aparılan islahatlar prosesində əhaliyə göstərilən tibbi xidmətin Prokurorluq yanında Korrupsiyaya qarşı mübarizə idarəsinin keyfiyyətinin yaxşılaşdırılması mühüm və vacib məsələlərdən “161 – Qaynar xətt” Mərkəzinə və ya məhkəmə orqanlarına biridir. Məlumdur ki, hər bir tibb müəssisəsində, ümumilikdə isə müraciət edə bilərlər. bütün səhiyyə sistemində göstərilən tibb xidmətinin səmərəliliyi və effektivliyinin meyarı kimi məhz onun keyfiyyət göstəricisi 2013-cü ilin may ayında Nazirlik tibb müəssisələrinə yeni qəbul edilir. Əhaliyə göstərilən tibb xidmətinin keyfiyyətinə qaydalarla işə götürülmüş əməkdaşlarla görüş keçirmişdir. bilavasitə təsir edən vacib və əsas faktorlardan biri də tibb Bundan başqa, son illərdən başlayaraq ölkədə tibb işçilərinin müəssisələrinin kadr təminatı və tibb işçilərinin peşəkarlıq sertifikasiyasına başlanılıb. Bu yeni prosedurlar bərədə səviyyəsidir. məlumat verə bilərsinizmi? Bu gün ölkədə səhiyyə sahəsində Son illər ərzində respublika rəhbərliyinin dəstəyi ilə ölkədə kadr potensiyalı ilə bağlı məsələ hansı səviyyədədir? keçirilən islahatlar və tədbirlər nəticəsində Azərbaycanda Azərbaycanın bütün səhiyyə müəssisələri lazımi kadrla səhiyyənin inkişafında, tibbi xidmətin yüksək səviyyədə təmin oluna bilirmi? Ölkənin müxtəlif regionlarında səhiyyə aparılmasında, tibbi kadrların hazırlanma məsələlərində böyük müəssisələrinin kadrla təmin olunması və onların fəaliyyətini nailiyyətlər əldə olunmuşdur. Səhiyyədə gedən islahatlar stimullaşdırılması nə yerdədir? çərçivəsində əhaliyə göstərilən tibbi xidmətin gücləndirilməsi Səhiyyəmizin dünya standartları üzrə inkişafının əsas məqsədilə hazırda respublikanın müxtəlif regionlarında istiqamətlərindən biri tibbi təhsil və kadr islahatlarıdır. Nazirlik ən müasir tibb avadanlıqları və texnika ilə təchiz olunmuş tərəfindən son illər ərzində bu sahədə əhəmiyyətli tədbirlər yeni müalicə və diaqnostika mərkəzləri istifadəyə verilmiş, həyata keçirilmişdir. Bildiyiniz kimi, 2011-ci ilin yanvar ayından fəaliyyət göstərən tibb müəssisələrində əsaslı təmir işləri tibb işçilərinin bütün dünyada qəbul edilən sertifikasiyasının aparılmışdır. Klinikaların yüksək ixtisaslı tibbi kadrlarla təmin

14 Issue 19

in focus

edilməsi, dünya təbabətinə inteqrasiya məqsədilə onlarla tələbləri rəhbər tutaraq, Səhiyyə Nazirliyi bu istiqamətdə azərbaycanlı mütəxəssis Türkiyənin, Almaniyanın, Fransanın, fəaliyyəti sistemləşdirib və intensivləşdirib. Nazirlik ikitərəfli Rusiyanın, Belarusun və s. ölkələrin aparıcı klinikalarında anlaşmalar, memorandumlar çərçivəsində, dövlət tərəfindən təlim kurslarında iştirak etmişlər. Bu gün Azərbaycanda ayrılan maliyyə vəsaiti hesabına azərbaycanlı mütəxəssislərin dünya səviyyəsində mürəkkəb əməliyyatları, o cümlədən xarici ölkələrdə 1, 3, yaxud 6 ay müddətində ixtisasartırma orqan transplantasiyalarını uğurla həyata keçirə bilən çoxlu kursları keçməsi üçün xüsusi təşəbbüs göstərir. gənc kadrlarımız vardır. Fikrimcə, Azərbaycan səhiyyəsini Əvvəllər gənc kadrların dövlət hesabına xarici ölkələrdə yüksəklərə qaldıra bilən gənc təbiblərdən ibarət böyük bir ixtisasartırma kurslarına göndərilməsinə təsadüfi hallarda ordumuz artıq formalaşmaqdadır. rast gəlinirdi. Adətən özəl klinikaların rəhbərləri şəxsi əlaqələri Lakin kadr məsələləri ilə əlaqədar regionlarımızda bəzi problemlər hesabına öz mütəxəssislərini xarici ölkələrə biliklərini qalmaqdadır. Respublikanın paytaxtından fərqli olaraq bəzən təkmilləşdirməyə göndərirdilər. Ancaq bu hal geniş vüsət regionlarda istifadəyə verilmiş yeni tibb ocaqlarında müasir almamışdı və həmin kadrlar, bu gün olduğu kimi, dünyanın avadanlıqların istifadəsi üçün ixtisaslaşmış mütəxəssislərin, ən nüfuzlu universitet klinikalarında təhsil almırdılar. Son illər müəyyən hazırlıq keçmiş kadrların çatışmazlığı qeyd olunur. ərzində Səhiyyə Nazirliyi tərəfindən görülən işlər nəticəsində Hazırda tibbi kadrlarla təminat məsələlərində şəhər və kəndlər Almaniya, Türkiyə, Rusiya, Polşa, Belarus kimi ölkələrlə tibb arasında disbalans və müvafiq olaraq bir sıra rayon və kənd mütəxəssislərinin mübadiləsi haqqında qarşılıqlı anlaşma yerlərində bəzi sahələr üzrə əhaliyə göstərilən tibbi xidmətin sazişləri imzalanıb və bu anlaşmalara əsasən çox sayda gənc lazımı səviyyədə təşkil edilməsində bəzi problemlər mövcuddur. kadrlar həmin ölkələrin nüfuzlu universitet klinikalarında öz Bu baxımdan, kənd yerlərindəki səhiyyə müəssisələrinə tibbi elmi və təcrübi biliklərini artırırlar. kadrların cəlb olunmasının həvəsləndirilməsi tədbirləri haqqında Səhiyyə Nazirliyinin bir sıra ölkələrlə imzaladığı qarşılıqlı Azərbaycan Respublikası Nazirlər Kabinetinin 05.08.2009- anlaşmalara əsasən, bu gün gənc kadrların xarici dövlətlərə cu il tarixli Qərarına uyğun olaraq yerlərdə kadr potensialını göndərilməsi ilə yanaşı, həmin ölkələrin nüfuzlu mütəxəssisləri gücləndirmək, tibb mütəxəssislərinin çatışmazlığını aradan də səhiyyə işçiləri üçün kurslar təşkil etmək məqsədi ilə götürmək məqsədilə “2010-2014-cü illər üçün Azərbaycan ölkəmizə dəvət olunurlar. Almaniya, Polşa, Rusiya, Türkiyə, Respublikasının səhiyyə müəssisələrində tibbi kadr təminatı Belarus və digər ölkələrdən olan professor-müəllim heyətlərinin, üzrə İnkişaf Proqramı” hazırlanmışdır və 24.06.2010-cu il ekspertlərin, həkimlərin Azərbaycanda həm nəzəri, həm də tarixdə Nazirlər Kabineti tərəfindən təsdiq edilmişdir. Bu praktiki seminarlar təşkil etməsi səhiyyə sahəsində qazanılan proqram Azərbaycan Respublikasının tibbi kadr təminatının uğurların artırılmasına təkandır. yaxşılaşdırılmasında xüsusi əhəmiyyət kəsb edir. İstər kadrların xarici ölkələrə göndərilməsi, istərsə də Ölkədə tibb mütəxəssislərinin işə qəbulu müsabiqə yolu xarici ölkələrdən mütəxəssislərin ölkəmizə dəvət edilməsi mərkəzləşdirilmiş qaydada həyata keçirilir. Bu da şəffaflığın zamanı səhiyyəmiz üçün prioritet sayılan sahələr nəzərə təmin edilməsinə, neqativ halların aradan götürülməsinə və alınır. Xəstəxana təşkili, radiodiaqnostika, anesteziologiya, həkimlərin obyektiv şəkildə işlə təmin edilməsinə müsbət hematologiya, reproduktiv sağlamlıq, uşaq kardiocərrahiyyəsi, təsirini göstərəcək. invaziv kardiologiya, transplantologiya və digər bu kimi prioritet sahələrin inkişafına xüsusi diqqət yetirilir. İcazənizlə, bir sualım insan resursları ilə bağlı olacaq. Ümumiyyətlə, son illər tibb kadrlarımızın bilik və təcrübələrinin Bildiyiniz kimi, 2007-2015-ci illərdə Azərbaycan gənclərinin artırılması istiqamətində çox böyük işlər görülür, mütəmadi xarici ölkələrdə təhsili üzrə Dövlət Proqramı hazırda həyata olaraq yeni müqavilələr imzalanır, əvvəllər imzalanmış keçirilir. Bu proqram çərçivəsində tibb və səhiyyə sahəsində müqavilələrin vaxtı uzadılır. təhsil alanların sayı çoxdurmu? Səhiyyə Nazirliyi Təhsil Xarici ölkələrə göndərilən müdavimlər ölkəmizə qayıtdıqdan Nazirliyi ilə bu sahədə necə əməkdaşlıq aparır, hansısa sonra onlardan çox ciddi hesabat da tələb olunur. Kurslarda tövsiyələr mi verir, müsahibə prosesində iştirak mi edir? həm nəzəri, həm də praktiki biliklərini təkmilləşdirmiş tibb Həmin xətt ilə xaricdə oxuyub qayıdan azərbaycanlı işçiləri bu hesabatlarda hansı yeni bilikləri, müalicə metodlarını mütəxəssislər işlə necə təmin olunur? Yeri gəlmişkən, özəl mənimsədikləri barədə məlumat verir, gələcəkdə ölkəmizdə klinikaların Azərbaycana əcnəbi mütəxəssis gətirməsinin tibbi xidməti və tibb təhsilini inkişaf etdirmək üzrə öz təkliflərini prosesi necədir? Ümumiyyətlə, əcnəbi həkimlərlə bağlı də qeyd edirlər. kvota müəyyən edilibmi? Bu ixtisasartırma kursları tibb mütəxəssislərimiz üçün yüksək Son illərdə Azərbaycanın tibb mütəxəssislərinin, o cümlədən effektivliyə malikdir və onlar qısa müddət ərzində böyük elmi gənc kadrların xarici ölkələrdə ixtisaslarını artırması, Avropanın və praktik təcrübə qazanırlar. Bütün bunlar isə Azərbaycan nüfuzlu universitetlərində səhiyyənin müxtəlif sahələri üzrə elmi səhiyyəsinin bugünkü və gələcək inkişafına xidmət edir. və təcrübi biliklərini daha da təkmilləşdirməsi geniş vüsət alıb. Azərbaycan Respublikasının Prezidenti İlham Əliyevin 2006-cı Elsevər müəllim, bu gün ölkənin dərman bazarındakı il 19 oktyabr tarixli «2007-2015-ci illərdə Azərbaycan gənclərinin vəziyyəti necə qiymətləndirirsiniz? Azərbaycanda kontrafakt xarici ölkələrdə təhsili üzrə Dövlət Proqramı»nın təsdiq dərmanlar problemi mövcuddurmu? Əgər bu məsələ edilməsi barədə Sərəncamı, digər ixtisas sahələrində olduğu gündəmdədirsə - mübarizə aparılmasını qənaətbəxş hesab kimi, yüksək səviyyəli tibb mütəxəssislərinin hazırlanması etmək olarmı? işində də dönüş yaradıb. Belə ki, bu Sərəncamdan irəli gələn Bu gün ölkədə dərman bazarındakı mövcud vəziyyəti qənaətbəxş

16 Issue 19

in focus

saymaq olar. “Dərman Vasitələri Haqqında” Azərbaycan yoxlamalar nəticəsində 8600 qutudan çox dövlət qeydiyyatı və Respublikasının Qanunu ilə müəyyən edilən dərman və yararlıq haqqında analiz protokolları olmayan dərman vasitələri tibb vasitələri ilə davranışın hüquqi və təşkilati əsaslarının müsadirə edilmişdir. qanunauyğunluğunu, dərman vasitələrinin keyfiyyəti, səmərəliliyi və təhlükəsizliyi üzərində dövlət nəzarətini və həmçinin əczaçılıq Bildiyimiz kimi, Azərbaycanda bütün əczaçılıq məhsullarına bazarı iştirakçılarının fəaliyyətlərini müvafiq normativ-hüquqi aid məlumat vərəqləri doğma Azərbaycan dilimizdə təqdim sənədlərin tələblərinə uyğun həyata keçirilməsinə nəzarəti Səhiyyə olunmalıdır, hərçənd bəzi apteklərdə dərman qablarının Nazirliyinin Analitik Ekspertiza Mərkəzi həyata keçirir. Analitik içində olan bu vərəqlər digər dillərdə dərc olunublar. Belə bir Ekspertiza Mərkəzi tərəfindən 2013-cü il ərzində də ölkə ərazisində paralel idxal məsələsi necə tənzimlənir? fəaliyyət göstərən əczaçılıq təşkilatlarında qanunvericiliyin Ölkəyə idxal olunan dərman vasitələrinin içlik vərəqələrindəki tələbləri gözlənilməklə yoxlamalar aparılmışdır. Ümumilikdə, məlumatların ana dilində olması ilə bağlı hələ 2012-ci ilin əvvəllərində yoxlamaların qeydiyyata alınmasına dair sahibkarlıq sahəsində istehsalçı və idxalçı şirkətlərə Səhiyyə Nazirliyi tərəfindən ciddi aparılan yoxlamaların vahid məlumat reyestrindən alınmış müvafiq xəbərdarlıq olunmuşdur. Hal-hazırda ölkədə dövlət qeydiyyatına çıxarışlara əsasən bu il ərzində 270 aptekdə yoxlamalar keçirilmişdir. alınan dərman vasitələrinin sayı 4300-ə yaxındır. Bu preparatların Xüsusi razılıq (lisenziya) olmadan əczaçılıq fəaliyyətilə məşğul da hamısının içlik vərəqələri ana dilinə tərcümə olunaraq Səhiyyə olan 5 aptek aşkarlanaraq fəaliyyətləri dayandırılmışdır. Həmçinin Nazirliyi tərəfindən təsdiqlənmişdir. Amma, buna baxmayaraq keçirilən reydlər nəticəsində Azərbaycan Respublikasında dövlət əczaçılıq bazarında aparılan yoxlamalar nəticəsində hələ də qeydiyyatına alınmamış və yararlıq haqqında analiz protokolları azərbaycan dilində içlik vərəqəsi olmayan dərman vasitələrinə rast olmayan 8601 qutu, istifadə müddəti bitmiş 65 qutu dərman gəlinir. Bununla bağlı Analitik Ekspertiza Mərkəzinin İnspeksiyası preparatları aşkar olunaraq müsadirə edilmişdir. Yoxlamalar tərəfindən müvafiq işlər aparılır, belə preparatlar aşkarlandığı zamanı apteklərdə resept təqdim edilməklə buraxılmalı olan təqdirdə müsadirə olunaraq satışdan çıxarılır, bu preparatları dərman vasitələrinin reseptsiz buraxılması və ya yetkinlik yaşına satan apteklərə qarşı qanunvericiliyə uyğun cəza tədbirləri görülür. çatmayanlara dərman vasitələrinin buraxılması qaydalarının Əhali tərəfindən alınan dərman vasitələrində içlik vərəqələrindəki pozulması faktına görə inzibati xətalar haqqında 11 protokol tərtib məlumatlar ana dilində olmadığı aşkarlandığı təqdirdə Səhiyyə edilmişdir. Bu sahədə hal-hazırda mövcud problemlərdən ən Nazirliyinin qaynar xətti vasitəsilə məlumat vermələri xahiş olunur. əsası bazarda dövlət qeydiyyatı olmayan dərman vasitələrinin olmasıdır. Bununla bağlı həm Səhiyyə Nazirliyi tərəfindən, həm də Nazirlər Kabinetində əczaçılıq məhsullarına aid vahid nəzarət hüquq-mühafizə orqanları tərəfindən ciddi işlər aparılır. Yuxarıda markası və qiymətlərinin layihələri ilə bağlı nə fikriniz var? qeyd etdiyim kimi cari il ərzində İnspeksiya tərəfindən keçirilən Bildiyiniz kimi Azərbaycan Respublikasının Prezidenti 29 iyun

18 Issue 19

in focus

2012-ci il tarixində “İstehlakçıların hüquqlarının müdafiəsi müqavilələrə uyğun olaraq bir sıra beynəlxalq təşkilatlar haqqında” Azərbaycan Respublikasının Qanununda dəyişikliklər və qurumlarla məhsuldar əməkdaşlıq əlaqələri mövcuddur. edilməsi barədə müvafiq sərəncam imzalamışdır. Qanuna görə Bunlardan Ümumdünya Səhiyyə Təşkilatı, Qlobal Fond, aşağıdakıların nəzarət markası ilə markalanması tələb olunur: BMT-nin Uşaq Fondu, Amerika Birləşmiş Ştatlarının İnkişaf dərman vasitələri; audiovizual əsərin, fonoqramın, kompyuter Fondu, TİKA, Yaponiyanın JİCA, Vişnevskaya - Rostropoviç proqramının, məlumat toplusunun, kitabın nüsxələri və digər Fondu və digərlərini göstərmək olar. Avropa və ABŞ-da müəlliflik və əlaqəli hüquq obyektləri; dini təyinatlı ədəbiyyat aparılan layihələr kimi bizdə də səhiyyə proqramlarında dövlət (kağız və elektron daşıyıcılarında), audio və video materiallar, təşkilatları ilə birgə qeyri- hökumət təşkilatları da aktiv fəaliyyət mal və məmulatlar və dini məzmunlu başqa məlumat materialları. göstərirlər. Təkcə, Qlobal Fondun İcraedici orqanı olan “Ölkə Həmçinin dövlət başçısı bu ilin aprel ayında “Dərman vasitələri Əlaqələndirici Mexanizmində” dövlət qurumları ilə birgə haqqında” Azərbaycan Respublikasının Qanununa əlavə və qeyri hökumət təşkilatları 50/50 nisbətində fəaliyyət göstərir. dəyişikliklər edilməsi barədə qanunu imzalamışdır. Bu Qanunla Bundan əlavə, Yaponiyanın “Ot kökləri və insan təhlükəsizliyi” “Dərman vasitələri haqqında” Azərbaycan Respublikasının layihələri bir sıra regionlarda ilkin səhiyyə müəssisələrinin Qanununa 8.2-ci maddə əlavə edilmişdir. Məzmunu: “Dərman bərpasına yönəlmişdir. Burada da, əsas icraçılar qeyri vasitələrinin üzərinə müvafiq icra hakimiyyəti orqanı tərəfindən hökumət təşkilatlarıdır. Layihələrin ictimailəşməsi və vətəndaş verilən nəzarət markası yapışdırılmalıdır”. Nəzarət markası cəmiyyətinin onların fəaliyyətinə cəlb olunmasının müstəsna dərman vasitəsinin dövlət qeydiyyatından keçməsini, dərman əhəmiyyəti vardır. Amerika Ticarət Palatasında bir sıra vasitəsinin keyfiyyəti, təhlükəsizliyi və səmərəliliyinin göstəricisi beynəlxalq təşkilatlar da üzvlük edirlər. Bu qurumların səhiyyə kimi də qəbul oluna bilər. Qaydalar təsdiqləndikdən sonra ölkədə və sosial sahədə hər hansı bir layihə və proqramları nəzərdə dövlət reyestrində olan dərman vasitələrinin idxalı zamanı onların tutulursa, biz əməkdaşlığa hazırıq. üzərinə nəzarət markası yapışdırılacaqdır. Dərman vasitələrinin vahid qiymətləri barədə onu deyə bilərəm ki, təkliflər hazırlanan Azərbaycanda icbari tibbi sığortanı tətbiq sığortanı tətbiq zaman dünya təcrübəsinə istinad olunub, təkliflərdə dərmanların edilməsi prosesi hal-hazırda nə yerdədir? hər yerdə vahid qiymətə satılması nəzərdə tutulur. Onların Azərbaycan Respublikası Prezidentinin 27 dekabr 2007-ci il üzərində qiymətləri göstəriləcək. Bununla bağlı olaraq Türkiyə, tarixli 2592 nömrəli Sərəncamı ilə Azərbaycan Respublikasının Avropa və bir sıra başqa ölkələrin təcrübəsi öyrənilib, analiz Nazirlər Kabineti yanında İcbari Tibbi Sığorta üzrə Dövlət olunub və İqtisadiyyat və Sənaye Nazirliyi ilə birgə yekun təkliflər Agentliyi yaradılmışdır. Səhiyyə sistemində icbari tibbi sığorta hazırlanaraq hökumətə təqdim edilib. Qiymətlərin tənzimlənməsi sisteminin tətbiqi ilə əlaqədar tədbirlərin sürətləndirilməsi və müəyyənləşdirilməsinin təsdiq olunacaq Qaydalar əsasında Azərbaycan Respublikası Prezidenti tərəfindən təsdiq olunmuş Tarif şurası tərəfindən aparılacağı gözlənilir. Bu ilin axırına kimi “Korrupsiyaya qarşı mübarizəyə dair 2012-2015-ci illər üçün hər hansısa bir qərarın verilməsini gözləmək çətin olar. Çünki Milli fəaliyyət Planı”nında xüsusi bənd qeyd edilmişdir. İcbari hələ bir sıra texniki məsələlər öz həllini tapmalıdır. tibbi sığorta sisteminin tətbiqinin sürətləndirilməsi məqsədilə sözü gedən Agentliyin təşkil olunaraq fəaliyyətə başlamasından Bu gün Azərbaycanda “Elektron Hökumət” konsepsiyası sonra mümkün olacaqdır. çərçivəsində müxtəlif xidmətlər göstərilir, onların bir qismi vətəndaşlar üçün, qalanı isə biznes sektor üçündür. Səhiyyə Azərbaycanda özəl tibb müəssisələrində eyni xidmətlərin Nazirliyi hal-hazırda hansı xidmətləri elektron şəklində həyata qiymətləri fərqlidir. Bəzi müəssisələrdə xidmətlərin qiymətləri keçirilir? Hansısa yeni elektron xidmətlər gözlənilirmi? olduqca baha olur. Bunu nəzərə alaraq, Səhiyyə Nazirliyi “Mərkəzi icra hakimiyyəti orqanları tərəfindən konkret özəl tibb müəssisələrində qiymətlərin müəyyənləşdirilməsi sahələr üzrə elektron xidmətlər göstərilməsi Qaydaları"nın prosesində iştirak və bu prosesə nəzarət edə bilərmi? və "Elektron xidmət növlərinin Siyahısı”nın təsdiq edilməsi Ümumiyyətlə, özəl tibb müəssisələri üçün müəyyən edilmiş haqqında” Azərbaycan Respublikası Nazirlər Kabinetinin standartlardan oxucularımıza məlumat verə bilərsinizmi? 2011-ci il 24 noyabr tarixli 191 nömrəli Qərarı ilə Səhiyyə Azərbaycanda özəl tibb fəaliyyəti ilə məşğul olan Nazirliyinə tapşırılmış 38 elektron xidmətdən 28 elektron müəssisələrdə tibbi yardıma görə ödəniş 30 dekabr 1999- xidmət hazırlanmışdır və istifadəyə verilmişdir: cu il tarixli “Özəl tibb fəaliyyəti” haqqında Qanunun 13-cü 2014-cü ilin əvvəlinə 10 elektron xidmətin təhvil verilməsi bəndində müvafiq olaraq tənzimlənir. Özəl tibb fəaliyyəti nəzərdə tutulur. subyektlərinin vətəndaşlar və təşkilatlarla (o cümlədən, könüllü tibbi sığorta üzrə tibbi xidmətlər göstərilməsinə dair Elsevər müəllim, Nazirlik müxtəlif qurumlarla əməkdaşlıq sığorta təşkilatları ilə) müqavilələr çərçivəsində göstərdikləri edir, dövlət agentliklərdən başqa – beynəlxalq və qeyri- tibbi xidmətlərin tarifləri tərəflər arasında razılaşmaya görə hökumət təşkilatlarla, biznes assosiasiyalarla. Belə bir müəyyənləşdirilir. Özəl tibb fəaliyyəti subyektlərinin icbari əməkdaşlığın rolu haqqında fikirlərinizi bölüşə bilərdinizmi? tibbi sığorta proqramında iştirakından asılı olmayaraq Səhiyyə Nazirliyinin biznes assosiasiyalar ilə və xüsusən ehtiyacı olan şəxslərə göstərilən təcili tibbi yardıma görə Amerika Ticarət Palatası ilə bundan sonrakı əməkdaşlığını ödəniş icbari tibbi sığorta qaydalarına əsasən tibbi sığorta necə görmək istərdiniz ? təşkilatı tərəfindən həyata keçirilir. Azərbaycan Respublikasında aparılan səhiyyə islahatları çərçivəsində ölkəmizin tərəfdar çıxdığı beynəlxalq Cənab Nazir Müavini, müsahibə üçün təşəkkür edirik.

20 Issue 19

in focus

Pharmaceutical Market in Azerbaijan Challenges and Opportunities

Sevinj Aliyeva PwC Azerbaijan

The pharmaceutical industry is one of the most attractive and high-margin industries in the world with global sales revenues exceeding $1 trillion. The major players on the pharmaceutical market include large multi-national companies (so-called 'Big Pharma'), mid-size specialty pharmaceutical firms, generic manufacturers, small biotechnology and biopharmaceutical firms, and various ancillary support and service companies.

Although the growth in the last years has not been as robust as before mainly due to regulatory pressures, the prospects of the pharma industry still look shiny due to the globally growing and aging population, complications of the diseases, the increased access to healthcare and development of the emerging markets. In the recent years the rapidly growing economy of Azerbaijan has attracted a big number of global investors, including healthcare government expenditure on healthcare in 2013 was only investors and multinational pharmaceutical companies. 670 million AZN1, which is 3.65% of the overall government budget and only 1.2% of the GDP2. This is a modest Opportunities in Pharma spending especially compared to developed countries, where government healthcare expenditures exceed 10% of the GDP. The pharmaceutical market of Azerbaijan particularly offers lots of opportunities taking into account the growing population Such low level of the government expenditure on healthcare of the country that already exceeds 9 million and is expected results in the high level of out-of pocket expenditures of to grow by 1% each year, the overall trend towards aging the population. Currently, private healthcare expenditure of the population, growing GDP per capita and continuing in Azerbaijan accounts for about 70% of total healthcare government reforms aimed to improve the quality of the expenditure. The government plans to address this issue healthcare and access to the medical facilities. through the introduction of the mandatory medical insurance program. The law on medical insurance was actually approved Over the past decade the Government has dramatically in 1999, but so far it remains inactive. increased its healthcare expenditure, invested into renovation and construction of healthcare facilities, launched several The recent debates around the law on medical insurance state healthcare programs and sponsored the education of a assume that the law will be enacted in the near future. Annual number of students and young doctors abroad. expenditures under the mandatory medical insurance program are estimated to be 400-500 mln AZN3. It is expected that the Despite all these investments, the general budgeted mandatory medical insurance program will cover purchase

1 Azerbaijan Pharmaceutical Country Profile published by the Ministry of Health in collaboration with the World Health Organization (12/05/2011) 2 The State Budget of the Azerbaijan Republic for 2013 3 http://abc.az/rus/news/77048.html

22 Issue 19

in focus

of pharmaceuticals. It means that the opportunities for the Illegal import of medicines poses a serious risk for patients, pharmaceutical sector will increase. because these medicines do not pass through the normal quality control procedures and the requirements for their Another factor that contributes to the increased interest of transportation and storage are often not met. Moreover, the pharmaceutical companies is absence of the local production. illegally imported medicine is often a counterfeit. Thus the quality Actually, there are three licensed pharmaceutical manufacturers of pharmaceutical that were illegally imported is questionable. in Azerbaijan, but their activities are limited to repackaging of finished dosage forms and their market share is very low. As Parallel trade also creates many problems for pharmaceutical a result, the local competition and protectionism of the local companies. First of all it increases reputational risks for the pharmaceuticals does not present a real threat to foreign company, as the illegally imported product is still associated companies, as opposed to the situation in many other countries. with the certain pharmaceutical brand and any negative experience with the use of such product may harm the Additionally, in the recent years the access of the population confidence of patients and doctors in the quality of the to the healthcare facilities and the awareness of population on medicines of a company. healthcare have increased. The general attitude of the people towards their health has improved. These factors, coupled Additionally, low prices of parallel import erode competition with the growing income of the population, have boosted the on the market and lead to lost revenues for pharmaceutical private expenditure on healthcare and increased sales of companies that run their business in Azerbaijan. pharmaceuticals in Azerbaijan. The problem with the illegal parallel trade and counterfeit in In 2012 the overall market of pharmaceuticals in Azerbaijan Azerbaijan has existed for a number of years. In April 2013 the reached USD 350 million and demonstrated a 24% growth vs Law on Medicines was amended with a requirement to mark 2011.4 In general, the pharmaceutical market in Azerbaijan has all drugs with a special control stamp. Such a stamp confirms demonstrated a double digit growth over the last several years that the pharmaceutical product has passed the appropriate and it is expected that this growth will be maintained in the state control. This amendment should help solving the problem foreseeable future. Introduction of a State Medical Insurance with the illegal parallel trade and counterfeit. Program and further investment into healthcare provide lots of opportunities for pharmaceutical companies and may be the Requirement to supply medicines with Patient Insert major driver of economic growth in the future. Leaflets in Azerbaijani language Nowadays almost all countries in the world require Challenges to Overcome: pharmaceutical companies to provide packs in a local language or at least to provide a Patient Insert Leaflet (PIL) in Despite of all of the great potential of the market there are a a local language. number of factors that create real challenges for pharmaceutical In the recent years many CIS countries, including Ukraine, companies in Azerbaijan. The most topical issues are “parallel” Uzbekistan, and Kazakhstan also enforced the legislation that trade, counterfeit, requirement to supply medicines with Patient requires providing PILs in the local language. Azerbaijan also Insert Leaflets in Azerbaijani language and lack of regulation on followed this route. pharmaceutical promotion, which gives unwanted advantages to low quality unbranded generic companies. In accordance with the Law on Medicines introduced in 2007 all medicines imported to Azerbaijan are required to have a PIL Parallel Trade and Counterfeit in the Azerbaijani language. However, until recently, almost all There is a large and unregulated unofficial market of pharmaceutical companies used to import medicines with the pharmaceuticals in Azerbaijan that are illegally imported to the Russian or English PILs. Drugs with PILs in the Azerbaijani country without appropriate control from the Customs and the language were very rare. Ministry of Health. Although the legislation requires customs clearance and quality control of all pharmaceuticals that Starting from 2012 the Ministry of Health began the pass the border and forbids import of the medicines that did enforcement of the legislation in this area. not receive the regulatory approval in Azerbaijan, still many The benefits of having PIL in the Azerbaijani language are illegally imported drugs appear in pharmacies in Azerbaijan. apparent. It allows the patient to get a better access to the The parallel import mainly comes from Turkey and the major information about medicine. At the same time it may help to driver for it is the price differentials. Due to the government stop parallel trade and counterfeit. regulations and state insurance program, prices for pharmaceuticals in Turkey are lower than in Azerbaijan. Also However apart from the obvious benefits, this decision had parallel import of medicines intended for tenders in other a number of drawbacks that affected both patients and countries (so-called tender leakage) is not rare. pharmaceutical companies.

4 Research of SMD Ukraine - http://www.promoboz.com/n1_36/106-107.pdf

24 Issue 19 in focus

The majority of medicines imported into Azerbaijan had the One view is that whilst it is vital for the patients to have Russian or English packs. The requirement to supply medicines access to the information about the medicine in their native with PIL in Azerbaijani forced pharmaceutical companies to language, it is only relevant to the products that are sold rework their supply to Azerbaijan or to produce packs with without prescription. Patients do not necessarily need detailed Azerbaijani PILs. While this requirement was not a big issue for information about hospital products (like anesthetics, IV small producers of cheap generic products, representatives of the antibiotics and others) that they take in their treatment in the Big Pharma Companies and branded generics had to undergo hospital. Such products are prescribed by the doctors, who an expensive pack rework process or re-set their production to receive the detailed information about the medicine, including manufacture product packs with the Azerbaijani PIL. As a result, its PIL in Azerbaijani language, via representatives of the the cost of the pharmaceuticals produced for Azerbaijan has pharmaceutical company that produces such medicine. increased due to the expensive rework or smaller batches, and some pharmaceutical companies decided to pass this increase It is possible that, if the Government decides to allow the import to the end customers through increased prices. of hospital products without PIL in Azerbaijani language, it would help to increase the access of patients to higher quality Also, the requirement to supply medicines with PILs in medicines, provide better flexibility in supplying Azerbaijan Azerbaijani increased lead times of manufacturers and ended market, drive the prices down and improve the competition on up in a reduced flexibility to supply the Azerbaijani market. the market of hospital products. Production of some medicines with PILs in Azerbaijani was recognized uneconomical and the producers stopped the Lack of effective regulation on pharmaceutical promotion supply of some medicines to Azerbaijan. Regulation of pharmaceutical promotion and marketing remains a hot topic not only in Azerbaijan, but in many countries globally. Moreover, the requirement to supply medicines with PILs in Many developed countries already have a well-established Azerbaijani coupled with the parallel trade issue and other legal framework that governs the promotion and marketing of market pressures also forced two Big Pharma companies to pharmaceuticals. In many other countries, most active regulation leave the Azerbaijani market in 2013. is carried out through voluntary codes and guidelines.

As result, patients ended up with the increased prices of In the recent years, many CIS countries have passed the the medicines and reduced access to high quality branded legislation focused on promotion of pharmaceuticals. For products, while the branded pharmaceutical companies example, the legislation in Russia, Ukraine and Kazakhstan lost part of their revenues and had to deal with additional requires the approval of all promotional materials with the Ministry complications related to the supply of products. of Health prior to their distribution to healthcare professionals.

25 in focus

In Azerbaijan the only piece of legislation that governs the promotion of pharmaceuticals is the Law on Medicines dated 22 December 2006. However the provisions of the law are very brief and broad and are mostly related to the promotion of Over the Counter (OTC) pharmaceutical products (products that are freely sold without prescription).

The law contains only one general statement that requires pharmaceutical companies to provide full information about pharmaceutical and its features to healthcare professionals. The legislation does not set any requirements for the standards of promotion of medicines to healthcare professionals, does not require the approval of the promotional materials distributed and has many other gaps and loopholes that are successfully exploited by low quality generic companies.

In practice, the Big Pharma companies, as well as many branded generics follow International Federation of Pharmaceutical Manufacturers and Associations’ (IFPMA) Code of Practice, which is a voluntary code that promotes application of the same high standards of ethical behavior to the promotion of pharmaceutical products in all countries, regardless of the level of development of their economic and health care systems.5

In realities of Azerbaijan, the ethical manufacturers often have to fight with the unethical promotion practices of their generic competitors, that may offer incentives to healthcare professionals, use off-label promotion, assert that the results of the research of the branded product apply to their generic Reforms of the government may make the competition on product and run a number of other activities that undermine the market healthier, restrict unethical promotion and prevent the reputation of the entire pharmaceutical industry. illegal parallel trade. At the moment the future outlook of the Azerbaijani pharmaceutical market largely depends on the Unethical actions of low quality generic manufacturers pose a government regulations. real risk to the public healthcare in Azerbaijan, as communication of the unreliable and wrong information, off-label promotion Author’s biography supported by lower prices for products may lead to further Sevinj Aliyeva works as a Senior Tax Consultant in the Tax disease complications, wrong treatments and fatalities. and Legal Services Department of PwC Azerbaijan. Sevinj has a thorough knowldge of the pharmaceutical market in Therefore, appropriate legislative regulation of the promotion of Azerbaijan – legal aspects as well as practical issues. pharmaceuticals is very important for the future development of the country and strengthening of the public healthcare. This is thanks to her previous experience as the Financial Controller of a large multinational pharmaceutical company, where she was Summary responsible for all financial, accounting and taxation matters in Azerbaijan. Apart from the control over accounting and tax, Overall, the Azerbaijani pharmaceutical market looks financial analysis and budgeting, Sevinj’s scope of work included promising due to high growth potential, increasing focus of detailed analysis of the external data related to the volume and the government on healthcare, improving macro-economic value of sales of pharmaceuticals in Azerbaijan, changes in the indicators and socio-demographic trends. external environment and risks. Sevinj participated in all portfolio and pricing related decisions and helped to formulate the strategy The proposed introduction of the State Medical Insurance of the company in Azerbaijan. Program will bring new opportunities for pharmaceutical market. At the same time a number of factors complicate the Sevinj holds Master’s Degree in Computers and Programming competition on the market and give advantage to low cost, low from the Azerbaijan State Oil Academy and Advanced CIMA quality generics. This in turn has an adverse impact on the Diploma in Management Accounting. Currently Sevinj is at the healthcare in Azerbaijan in general. final stage of her CIMA qualification.

5 http://www.ifpma.org/ethics/ifpma-code-of-practice/about-ifpma-code-of-practice.html#sthash.hOjIqpBN.dpuf

26 Issue 19 member contribution

A new inspection law: a step forward Rustam Gasimov, Law clerk Baker & McKenzie’s Baku office

So, the Law on the Regulation of the Inspections in the Entrepreneurship sphere and the Protection of Entrepreneurs rights (Inspection Law) was approved. The Inspection Law will change the way inspections are conducted in Azerbaijan. As the law will take force the next year, the businesses have time to prepare for changes it will bring. The main consideration behind the law is the reform of the inspections and provision of safer guarantees of the entrepreneurs' rights. The purpose of the inspections should be ensuring the compliance by the businesses, as well as to guarantee the security of the life and an implementation of information by an inspection agency for a health, environment and material interests of the state by the planning and an organization of inspections2. inspectorates' assistance to the entrepreneurs1. The risk assessment system was implemented in several This article mainly concentrates on some novelties introduced countries in different forms and using various approaches. The by the law and implications which may arise in the process of reason behind it is the acknowledgement that the state cannot their implementation. properly control everything. Thus, the state must concentrate on the most hazardous areas of the economic life. All agencies responsible for the inspections in various fields should define New Risk Assessment System where are the most serious probabilities of a harm to the health and life, environment and state interests. One of the novel principles of the newly adapted law is the The implementation of this system shall decrease a frequency of implementation of a risk assessment system. The third chapter the inspections and at the same time increase the quality thereof. of the Inspection Law is specifically devoted to it. So, what is Because, it allows the inspectorates to concentrate on enterprises the risk based inspection system? The Inspection Law defines representing a greater risk, rather than losing time to controlling the risk assessment system as a system of a collection and every business which in reality does not pose any serious risks.

Ranking Approval of a list of Preparation of annual inspectorates Gathering data on inspection plans businesses for ranking Registration thereof in Identification of risk the single registry of group criterions Ranking of businesses inspections Formulation of Readiness for the basis inspections

1 The Inspection Law, Section 4.1 2 Id., Sub-section 1.1.8

27 member contribution

Risk groups of the problems arising and an understanding of the impact The law provides that all entrepreneurs shall be divided into of the process to both the Inspectorate and the businesses. three risk groups: low, medium and high risk groups3. The Moreover, the pilot Inspectorate may serve as an example ranking of the entrepreneurs in the specific area of inspection for the remaining agencies, thus contributing to the general shall be conducted by the authority4 carrying out such inspection implementation of the system. (hereinafter "Inspectorate") in accordance with the risk group It is important to note that the law does not provide any mechanism identification criterions. The list of the Inspectorates and their for complains against the ranking of the businesses. However control spheres shall be determined by the Cabinet of Ministers the enterprise may turn to the courts for the annulation of the with the consent of the President5. The risk group identification ranking decision. However, we believe the law should have criterions should be prepared by the relevant Inspectorates provided a certain procedure for this issue. Moreover, it seems and approved by the Cabinet of Ministers6. The Inspectorates like the ranking process is isolated from the entrepreneurs. No may not conduct any planned inspections before the criterions procedure is established on an informing the businesses of the for the identification of the risk groups are approved7. The risk groups they are allocated to. criterions should be reconsidered at least once in three years. The scope of the business, duration of the business operation in the certain sphere, the products and their distribution area, Checklists statistical information, past inspection records and discrepancies and contradictions in the reports of the businesses are additional The law established a mechanism of checklists. The checklist indicators to be considered for the ranking purposes. If any is a document which covers the questions the Inspectorate business may be ascribed to two risk groups, it shall be placed in should address to define the compliance of the business with the higher risk group8. the requirements applying to its activities. The new law defines that the checklists are mandatory requirements which should be Thresholds for the risk groups followed10. Moreover, the Inspection Law imposes a restriction on The legislator also provides a thresholds for the risk group issues which may be included into the checklists. More to the point, allocations. All businesses under a jurisdiction of the certain only significant requirements, i.e. the requirements the breach of Inspectorate should be ranked as follows : which may result in the harm to the life and health, environment and material interests of the state or create a significant or a direct threat thereto, may be entered into the checklists11. The law provides that the checklists shall be prepared by the concerned Inspectorate and approved by the head thereof and High risk group entered into the single information registry of the inspections. If Not more than 10 % the inspection reveals any infringement not listed in the checklist during the visits to the sites, no sanctions may be imposed for that infringement12. All Inspectorates should post the checklists Medium risk group for their respective area of inspection on their websites and Not more than 30 % must update them once they are modified. The most important consideration the law misses is the deadline for the finalizing the checklist preparation. There Low risk group is high probability that this gap will lead to the delay in the Remaining businesses implementation of the inspection reform. The form and the implementation manner of the checklists shall be approved by the Cabinet of Ministers as a separate normative-legal act. Implementation of the risk assessment However, the checklists if implemented as per the requirements The implementation of the risk assessment system may of the law will ensure the predictability and the transparency of face difficulties and may take a lot of time and efforts. The the inspections. It will prevent needless costs for the preparation experts consider a selection of a pilot agency or agencies as to the inspections. It will contribute to the strengthening of the one way to move forward the inspection reform. Because, compliance as any business may easily access and assess the the concentration on one or two Inspectorates to implement requirements it is obliged to comply with. Moreover, if not drafted the risk assessment system enables an in-depth analysis broadly, it will restrict the Inspectorates' authority to certain limits.

4 The Inspection Law, Sub-section 1.1.3 defines the inspecting authority as "a state agency mandated by the laws to conduct inspections " 5 the Presidential Decree No. 955 dated August 28, 2013, Section 1.2 6 Id., Section 9.5 and the Presidential Decree No. 955 dated August 28, 2013, Section 1.3 7 The Inspection Law, Section 9.8 8 Id., Section 9.4 9 Id., Section 9.6 10 The Inspection Law, Section 19.3 11 Id., Section 19.4 12 Id., Section 19.6

28 Issue 19 member contribution

Frequency and Duration of Inspections

The Inspection Law stipulates frequency requirements based on the risk-based targeting system. Depending where your business ranks it may be subject for different inspection frequency. The law differentiates two category of the frequency requirements: general and for food safety field. Below is the table which define the frequency of the planned inspections in general13:

RISK GROUPS MAXIMUM NUMBER OF INSPECTIONS High 1 per year Medium 1 per 2 years Low 1 per 3 years

There is a different picture in the food safety field:

RISK GROUPS MAXIMUM NUMBER OF INSPECTIONS High 1 per 6 months Medium 1 per year Low 1 per 2 years

This measures will lead to the desired goals in their adoption, The law also defines the general requirements for the duration in particular, reduce the number of the inspections. of the inspections. The below table illustrates the duration terms of the inspections14:

PLANNED INSPECTIONS UNPLANNED INSPECTIONS Size of business Maximum duration (business Size of business Maximum duration (business days) days) Large 10 Large 5 Medium 5 Medium 3 Small 5 Small 3

The criterions for determination of the sizes of the enterprises The law also provides for the following circumstances when will be defined by the Cabinet of Ministers with the consent of the inspections may be suspended by the head or acting head the President15. of the Inspectorate16:

RISK GROUPS MAXIMUM NUMBER OF INSPECTIONS Recovery of documents by the entrepreneur up to 30 days Inquiries to the state agencies, individuals or companies up to 30 days If addressees of inquiries are abroad up to 50 days Decision on an examination of the product is issued Depending on the investigation methodology or in its absence, within 10 days as of the date of handover act The inspection is not possible due to excusable absence of 20 the authorized representative of the enterprise

13 Id., Section 10.2 and 10.3 14 Id., Section 18.1 15 the Presidential Decree No. 955 dated August 28, 2013, Sub-section 1.1.7 16 The Inspection Law, Section 18.2

29 member contribution

Promotion of Compliance Inspectorates. We believe this issue is inseparable with the professional preparation of the inspectors. In practice, the The Inspection Law also established a principle which must inspectors' professional preparation does not allow them to reframe the current understanding of the inspectors to the meet their job requirements. As a rule inspectors use the tick inspection process. Two principles of the new law create a box method for conducting inspections. Thus the inspection useful basis for the promotion of the compliance: process is conceived as tool of revealing violations which results in lack of a deeper understanding and broader picture (a) the prevalence of the prevention of the violations over of the job functions and goals of the inspectors. imposition of the sanctions; and Fortunately, the law provides several mechanisms to reframe (b) the preventive and prophylactic character of the these circumstances. A high professional level of officials inspections and serving of the inspections as an assistance mandated to conduct the inspections is listed among the to the entrepreneurs in compliance with the mandatory rules. principles of the law. Moreover, the law provides for a framework of the authorities of and the requirements to the Advisory services for businesses inspectors. The persons employed by the Inspectorates Another guarantee of the promotion of the compliance is the should pass a training before going to the inspections. Article 8 fully dedicated to the advising of the entrepreneurs. Moreover, they shall pass trainings at least once in a year. The The article imposes an obligation on the Inspectorates to inspectors should observe the ethical norms of their agencies maintain the access of the entrepreneurs to all the rules and and their performance should be assessed according to the other requirements to their respective activities by means of Law on State Service. websites. Moreover, all this information should be free of any charge. The law also establishes a progressive way of a cooperation: the businesses are now entitled to invite the Recommendations and Conclusion representatives of the Inspectorates to the factual place of operation for assisting them in resolving of arisen problems. The stipulation of the mechanism of appeals from the decision Furthermore, the Inspection Law stipulates that the Inspectorates of the Inspectorates on the ranking of the entrepreneurs for the should establish free telephone information services. Advice risk assessment system would be useful for the transparency given through these services should be recorded. If the and ensuring of the checks and balances system. For this business violates the law by relying on the information given purpose, the businesses should be allowed to participate in by the Inspectorate through telephone information service in its the ranking process. operation, the business may not be held liable for that violation17. The selection of the pilot Inspectorate in the implementation of The law provides that the business may obtain the record of its the law may accelerate the reform and that such state agency telephone conference with the Inspectorate within 3 months as may serve as an example for other Inspectorates. of the date of that conference. The deadline should be appointed for the finalization of the checklist preparation. Cooperation between the businesses and the Inspectorates Preparation and distribution of the step-by-step manuals may It is well-known that small and medium size enterprises (SMEs) contribute to the strengthening of the compliance by the SMEs are more vulnerable to the inspections. Because, the SMEs and large businesses. have limited resources and usually lack the professional team The businesses should establish teams for the cooperation and for the compliance matters. The SMEs are the subjects of the a share of information with the Inspectorates and preparation most number of violations of non-significant character. So, of a guidance for their officers regarding the new rules of the the simple cooperation with the SMEs may bring fruitful results inspections. This may eliminate additional needless expenses in raising their level of the compliance. and a waste of resources when the inspection reform will start and the inspections will be conducted. A good example in this context of the experience of other In general, the Inspection Law may serve as a turning point countries would be development of business operation manuals in the development of the inspection field if implemented by the inspecting authorities for specific areas of businesses. It accordingly. would provide a step-by-step guidance how to comply with the different standards and requirements and also be used for the Author's biography educational purposes. Notwithstanding that it is not mandatory, Rustam Gasimov is a law clerk at Baker & McKenzie's Baku the Inspectorate also should try to follow these manuals. These office. He graduated from Baku State University (B.A. Law; manuals would contribute to the reduction of the number of the 2009). Rustam has experience in dispute resolution, antitrust violations in the respective fields. and competition, construction, labor matters. He advised numerous local and foreign companies on the labor, dispute Raising the professionalism of the inspectors resolution matters and represented several companies in As discussed above, the law provides a useful framework lawsuits against individuals, companies and state authorities. for the cooperation between the businesses and the Rustam Gasimov is fluent in Azerbaijani, English and Russian.

17 Id., Section 8.6

30 Issue 19 member contribution

FATCA and its impact on Azerbaijani financial institutions

Nuran Kerimov, tax cooperation and gathering information on international Managing Partner sources of income are crucial to the prevention of tax treaty Deloitte Azerbaijan abuse and the detection of tax evasion. A global system with liberalized cross-border economic activity Gunel Sadiyeva, but tax administrations that are confined to national borders is Senior Consultant only sustainable to the extent that countries agree to cooperate1. Deloitte Azerbaijan The cornerstone of tax cooperation is the exchange of information – a system that enables tax authorities to request assistance Introduction from their counterparts in other countries, in order to access information about their taxpayers and their foreign transactions. The globalisation of financial markets and the broadening of Article 26 of the OECD Model Tax Convention provides the cross-border activities by companies as well as individuals have most widely accepted legal basis for the bilateral exchange of forced many jurisdictions to adapt their tax laws and practices information for tax purposes. Article 26 creates an obligation to in order to secure their taxable basis. Governments from exchange information that is relevant to the correct application many countries face growing problems with the abuse of legal of a tax convention, as well as for the purposes of administrating frameworks and so called ‘treaty shopping’ cases, in which and enforcing domestic tax laws. companies take advantage of a more favourable jurisdiction to In recent years, there have been significant developments in tax minimise their tax contributions. Multinational companies are cooperation throughout the world, along with tax transparency increasingly choosing to locate subsidiaries in ‘tax havens’ and and exchange of information for tax purposes. shift profits to low or no-tax jurisdictions. In 2000, the Global Forum on Transparency and Exchange of Many countries are facing difficulties in financing their spending, Information for Tax Purposes was launched. It serves as the and governments have been forced to take measures to protect driving force behind the development of international standards themselves against tax evasion and the erosion of tax bases. of transparency and exchange of information for tax purposes. To counter tax treaty abuse, both specific and general anti- Azerbaijan joined the Global Forum on 26 February 2013.2 abuse rules should be considered. Additionally, cross-border In 2002, the Global Forum Working Group on Effective

1 Automatic Exchange of Information, OECD report 2012, p. 5; http://www.oecd.org/ctp/exchange-of-tax-information/AEOI_FINAL_with%20cover_WEB.pdf 2 Tax transparency 2013, Report on progress, Global Forum on Transparency and Exchange of Information for Tax Purposes, www.oecd.org/tax/transparency

31 member contribution

Exchange of Information developed a model agreement on the exchange of information on tax matters, the purpose of which is to establish a standard for what constitutes effective exchange of information for the purposes of the OECD’s initiative on harmful tax practices. The global tax community has also developed numerous other bilateral and multilateral instruments on the exchange of information:

• OECD Convention on Mutual Administrative Assistance in tax matters; • Bilateral or multilateral automatic exchange of information agreements as foreseen in the EU Taxation of Savings Directive and related agreements with non EU countries; • Foreign Account Tax Compliance Act (“FATCA”) agreements and the unilateral or bilateral intergovernmental agreements (“IGAs”) developed by the US This automatic exchange of information model was adopted in 2013 by the UK, which signed FATCA-type agreements with its Crown dependencies and overseas territories. On 28 November 2013, the German Ministry of Finance published a joint statement by the Finance Ministers of France, Germany, Italy, Spain and the United Kingdom announcing that Colombia, Greece, Iceland, Liechtenstein, Luxembourg and Malta declaring their intention to join the pilot scheme on multilateral automatic exchange of information developed by the five leading EU countries; 2) certain non-US entities to provide information about any US • Automatic exchange of tax information was adopted as a owners. new standard by the G-20 and G-8, who asked the OECD to develop a standard and the information technology FATCA is an important development within US initiatives aimed system to implement it. Once the G-20 has approved the at preventing tax evasion by US taxpayers and the improvement new standard, Global Forum countries will have to formally of tax compliance and exchange of information involving foreign decide whether to commit to automatic information exchange financial assets and offshore accounts. FATCA is the direct (probably in October or November of 2014, according to the product of losses in tax revenues in recent years, primarily from head of OECD's Center for Tax Policy and Administration, the abuse of offshore tax systems and hidden offshore bank Pascal Saint-Amans). accounts held by US taxpayers.3 US taxpayers living or working Currently, the interest in FATCA-type of agreements appears to abroad were found to be taking advantage of the fact that tax be growing rapidly, given that this will be used as a model by officials could not obtain information about foreign income and the OECD. collect taxes outside national borders, exploiting bank secrecy, or operating in the belief that paying taxes in a foreign country What is FATCA? exempted them from US tax liability. Given the above, and recognizing the inefficiency of the FATCA stands for Foreign Account Tax Compliance Act. information gathering system, the US administration decided to Colloquially, it refers to provisions included in the Hiring target foreign financial institutions and some other non-financial Incentives to Restore Employment Act signed into law on March foreign entities and to compel them to identify and disclose 18, 2010 and effective January 1 2013 (although, as explained information about their US account holders and owners. in more detail below, withholding and other requirements will not On January 17 2013, the US Treasury Department (US enter into force until July 1 2014 at the earliest). FATCA adds a Treasury) and the Internal Revenue Service (IRS) released the new chapter to the Internal Revenue Code (Chapter 4) aimed final regulations for FATCA (Final regulations). at addressing perceived tax abuse by US persons through the use of offshore accounts. How FATCA works

The new rules require FATCA’s mechanism for compelling compliance, a new 30 1) foreign financial institutions (FFIs) to provide the IRS with percent withholding tax on US source income, will have a information on certain US persons invested in accounts significant impact on all US and foreign financial institutions. outside of the US and This will likely encourage FFIs, as well as other affected

3 Dean Marsan, FATCA: The Global Financial System Must Now Implement a New US Reporting and Withholding System for Foreign Account Tax Compliance, Which Will Create Significant New Exposures— Managing This Risk (Part I), // Taxes – The Tax Magazine, pp. 27-92.

32 Issue 19 member contribution

foreign entities, to share information with the IRS for the first ‘Foreign Financial Institutions’? time. The withholding tax will be imposed in a similar manner to the existing withholding tax on US source income under An FFI is a foreign financial institution, which is any non-US Chapter 3 of the Internal Revenue Code by requiring payors entity that: (or withholding agents) of US sourced income and gross proceeds to withhold 30 percent on payments to non-US • Accepts deposits in the ordinary course of a banking or entities that do not certify their compliance with FATCA. To similar business; avoid the tax, FFIs must enter into formalized agreements • As a substantial portion of its business, holds financial assets with the IRS to share the identities of US account and asset for the account of others; holders (or be resident in a country that has an IGA with the • Is engaged (or holding itself out as being engaged) primarily US to implement FATCA). Other affected non-US/non-FFI in the business of investing, reinvesting, or trading in entities seeking to avoid the tax will be required to provide securities, partnership interests, commodities, or any interest information to the withholding agents relating to any of their in such securities, partnership interests, or commodities; US owners. In the final regulations released in January 2013, • Is a specified insurance company; or the US Treasury and IRS have provided detailed requirements • Is a holding company or treasury center. that FFIs, US withholding agents and other non-US entities must comply with to avoid the withholding liability under Generally, non-US entities such as banks, broker/dealers, FATCA. The regulations also detail exceptions and exclusions insurance companies, hedge funds, securitization vehicles, and to the withholding tax and suggest a broader framework of private equity funds will be considered FFIs. international cooperation seeking to ease challenges of FATCA compliance on foreign entities. Exclusions

Who is affected by FATCA? • Insurance companies that do not make payments with respect to cash value insurance or annuity contracts; Any entity making or receiving a payment of US source income • Excepted non-financial group entities (e.g. holding should consider whether it is subject to FATCA. FATCA may companies, certain treasury centers, or certain captive apply to both financial and non-financial operating companies. finance companies); Due to this breadth, FATCA impacts virtually all non-US entities, • Excepted non-financial start-up companies or companies directly or indirectly, receiving most types of US source income, entering a new line of business. including gross proceeds from the sale or disposition of US • Excepted non-financial entities in liquidation or bankruptcy; property which can produce interest or dividends. • Excepted inter-affiliate FFIs (entities that do not maintain Although the scope of the FATCA regulations casts a financial accounts and do not hold an account with or receive relatively broad net over the types of entities and businesses payments from any withholding agent other than a member that are defined as financial institutions, foreign entities that of their expanded affiliated group); conduct banking or similar business (foreign banks) are • Certain organizations falling under Section 501 (c) of squarely in the center of the net. Where the foreign bank the Internal Revenue Code (e.g. corporations organized is a member of an affiliated group, all members of the under act of Congress, title holding corporations for affiliated group must sign FFI Agreements to be considered exempt organizations, labor agricultural and horticultural a participating FFI. organizations, business leagues, chambers of commerce, Certain foreign banks, whose operations are limited to the real estate board, etc.); country in which they are incorporated, and who do not solicit • Non-profit organizations that meet certain conditions. nor have accounts outside of that country may be eligible for “deemed compliant” status, as may certain smaller purely local Final regulations identify certain types of entities as excluded banks or those with only low value accounts. from the definition of an FFI, or deemed compliant. Such entities FATCA affects not only FFIs, but also non-financial foreign include: entities. The requirements that apply to non-financial foreign entities are as follows: • Local FFIs that do not solicit account holders outside their country of organization and implement procedures to monitor • to provide the withholding agent with certification that the whether the FFI opens or maintains an account for specified foreign entity does not have a substantial US owner; US persons, entities controlled or beneficially owned by one • to provide the withholding agent with the name, address and or more specified US persons or non-participating FFI’s. Tax Identification Number of each substantial US owner. Local FFI’s status is restricted to entities located in FATF compliant jurisdictions. If the non-financial foreign entity refuses to meet these • Non-registering local banks that operate solely as a bank, requirements a withholding penalty at the rate of 30 per cent will credit union or similar organization, whose main business be applied to all withholdable payments. consists primarily of receiving deposits and do not solicit Which type of entities are covered by the definition of customers outside its country of incorporation if they do not

33 member contribution

exceed certain amounts in assets on their balance sheet; • Non-reporting members of participating FFI groups implementing policies and procedures to ensure that they do not open or maintain accounts for recalcitrant account holders, nonparticipating FFIs, or US accounts; • Certain qualified collective investment vehicles that only have participating FFIs, registered deemed-compliant FFIs, qualified retirement plans, certain non-profit organizations, US persons that are not specified US persons, non-reporting IGA FFIs or exempt beneficial owners as direct interest holders. • Restricted funds that prohibit sales and other transfers of debt or equity interests to specified US persons, nonparticipating FFIs or passive non-financial foreign entities with one or more substantial US owners, when interests issued directly by the fund are redeemed by or transferred by the fund rather than sold by investors on any secondary market, and, interests not issued directly by the fund are sold only through distributors that are participating FFIs, registered deemed-compliant FFIs, non-registering local banks or restricted distributors; • Qualified credit card issuers; • Sponsored investment entities and controlled foreign corporations; • FFIs with only low-value accounts; • Sponsored, closely held investment vehicles; • Owner documented FFIs (entities with certain identified owners).

Registered FFIs deemed compliant will have to comply with the registration in the IRS requirements. A certified FFI that has been deemed compliant will need to certify its status as a deemed-compliant FFI by providing a withholding agent with the documentation required by FATCA Regulations. Non-Financial Foreign Entities Financial Accounts A Non-Financial Foreign Entity (NFFE) is any foreign entity that is not a financial institution under the provision of FATCA. In general, an FFI will enter into an agreement (“FFI Agreement”) NFFEs should be aware of their FATCA status so that they with the US Treasury by which the FFI can avoid FATCA can provide appropriate documentation to their withholding withholding on US source payments it receives (and become a agents if required. NFFEs are not required to enter into an participating FFI). FFI Agreement; however, a withholdable payment made to Generally, an FFI Agreement requires a determination of an NFFE is subject to FATCA withholding unless the NFFE is which accounts are “United States accounts” (a defined term), treated as excepted NFFE or certifies to the payor that it does compliance with verification and due diligence procedures, annual not have any US substantial owners (which generally includes reporting on those United States accounts to the US Treasury a US person that owns more than 10% of the entity directly or (see below), compliance with additional IRS reporting requests, indirectly) or provides required information of each substantial and withholding 30% where applicable (e.g., recalcitrant account US owner to the payor. Under the regulations, excepted holders, nonparticipating FFIs, electing FFIs, etc.). NFFE’s such as publicly traded corporations, certain start-up companies, certain entities that are liquidating or emerging The main questions arising in this regard are: from bankruptcy, NFFE’s engaged in an active trade or business (active NFFE) and certain other payees are generally • What procedures are to be taken to identify US accounts? exempt from FATCA withholding if proper FATCA certification • Which accounts are US accounts and subject to FATCA? is provided. NFFEs that do not qualify for excepted status are • What are the withholding requirements of the FFI with respect classified as passive NFFEs under the regulations. A passive to US accounts? NFFE is required to disclose its substantial US owners to a withholding agent who will use that information to file a Form The term US account means any financial account which is held 8966 with the IRS. by one or more specified US persons or US foreign entities.

34 Issue 19 member contribution

The term financial account covers the following types of accounts maintained by a financial institution:

• depositary account; • custodial account; • any equity or debt interest in a financial institution.

Depositary accounts held by natural persons where the total amount of all depositary accounts for each holder does not exceed US $50,000 are exempt. Due diligence procedures

The FFI Agreement will require foreign banks to identify and report on new and pre-existing accounts held by US Persons. The regulations generally place reliance on documentation and electronic data that is either collected through the FFI’s existing account opening process or that is normally maintained in the customer file, with specific reference in the preamble to the regulations to reliance on anti-money laundering “Know Your Customer” (AML/KYC) information. However, the rules for new accounts require that FFIs maintain copies of documentation and periodically renew it. These procedures are often not followed under pre-existing AML/KYC rules. Therefore, while reliance on the foreign bank’s existing documentation procedures may appear to offer the potential to reduce the impact of FATCA requirements on existing account opening and documentation procedures, in reality foreign banks may need to take additional steps to modify their existing programs in order to comply. The regulations have sought to ease the burden for FFIs of identifying US accounts from pre-existing accounts by excluding certain individual accounts with balances of $50,000 or less, and certain entity accounts with a balance of $250,000 or less. Further, for individual accounts with balances greater than $50,000, one or more of these is discovered, the FFI should request additional the regulations permit reliance solely on electronic searches of documentation from the account holder. An account holder that customer information to assist identification of pre-existing US does not provide the required information or documentation will accounts, where the account balance is $1 million or less. be defined by FATCA as recalcitrant account holders subject to the 30% FATCA withholding tax on US withholdable payments. US Final Regulations lists seven indicia of US status: The same withholding tax procedures applies to US withholdable payments made to non-participating FFIs. • US citizenship or lawful permanent resident (green card) FATCA provides that an FFI should close an account holder’s status; account if the holder of the account fails to provide the FFI • A US birthplace; with a waiver of any foreign law that would prevent the FFI • A US residence address or a US correspondence address from collecting the required FATCA documentation. An FFI (including a US P.O. box); can make an election to have the US withholding agent (or • A US telephone number (regardless of whether such number another upstream FFI making the payment) do the withholding is the only telephone number associated with the account on payments allocable to accounts held by recalcitrant account holder); holders or FFIs which do not have a valid FFI Agreement in • Standing instructions to pay any amounts from the account place. If an FFI makes this election, it will need to provide to an account maintained in the US; the withholding agent with the information required for the • An “in care of” address or a “hold mail” address that is the withholding agent to determine the appropriate amount to sole address with respect to the client; or withhold. • A power of attorney or signatory authority granted to a person with a US address. Withholdable payments

Having one of these indicia does not mean that the account is US source income is income that arises from sources within owned by a US person, only that it must be given closer scrutiny. If the US. The source of income is determined based on the type

35 member contribution

of income. The source of compensation income is where the services giving rise to the income were performed. The source of certain income, such as dividends and interest, is based on residence of the payer. The source of income from property is based on where the property is used. Significant additional rules apply.

FATCA provisions apply to “withholdable” payments. “Withholdable payments” are defined as:

• Any payment of interest (including any portfolio interest and original issue discount), dividends, rents, royalties, salaries, wages, annuities, licensing fees and other fixed, determinable, annual or periodical (FDAP) income, gains, and profits, if such payment is from sources within the United States; • Any gross proceeds from the sale or disposition of US property of a type that can produce interest or dividends; government basis with the United States. On November 14, • Certain “foreign passthru” payments will also be subject to 2012, US Treasury released a second model agreement (Model FATCA - a foreign passthru payment is a payment that is 2), under which FFIs would report specified information directly attributable to US source income. to the IRS in a manner consistent with the final regulations, supplemented by government-to-government exchange of Information to be provided information on request. The US Treasury has concluded 18 IGAs as at December 31,2013 and is currently negotiating IGA FFIs that enter into an FFI Agreement with the IRS will need to with more than 50 countries. report the following information on their US accounts subject to Model 1 and Model 2 provide standard terms that are generally a phased timeline for the implementation: not negotiable. However, the signatory countries have been able to negotiate the ability to exclude certain products and • The name, address, and Taxpayer Identification Number entities as non-reporting financial institutions and products in (TIN) of each account holder which is a specified United the Annex II of the Intergovernmental Agreement. The IGAs States person and, in the case of any account holder which do include what is referred to as the “most-favored nation” is a United States owned foreign entity, the name, address, provision, providing that, with respect to certain terms of the and TIN of each substantial United States owner of such FATCA IGA, a signatory country is entitled to the benefit of any entity; more favorable provision agreed to in a comparable IGA with • The account number; another partner jurisdiction, subject to certain conditions. • The account balance or value at year end It was expected that the vast majority of the approximately • Gross dividends, interest and other income paid or credited 250,000 FFIs around the world would enter into an FFI Agreement to the account. and thus become participating FFIs. However, the number of FFIs expecting to sign an FFI Agreement has decreased Reporting of gross receipts and gross withdrawals or payments significantly due to the signing of Model 1 Agreements. Under from US accounts will not be required for the first year of Model 1 IGA, the FFIs located in the signing jurisdiction are not reporting (2013). A passive NFFE is required to disclose its required to sign an individual FFI Agreement, FATCA provisions substantial US owners. FFI will report the above information being replaced by IGA provisions to be taken over in local law. related to substantial US owners to the IRS. Final Regulations FATCA provides that an FFI should close an account if the also provide that FFIs and deemed compliant FFIs that make holder of the account fails to provide the FFI with a waiver of payments that are considered FATCA reportable amounts to a any foreign law that would prevent the FFI from collecting the recalcitrant account holder or a nonparticipating FFI must report required FATCA documentation. FFIs located in Model 1 IGA such payments to the IRS. jurisdictions are not required to close accounts. Intergovernmental Agreements (IGA) Registration with the IRS

On July 26 2012, the US Treasury released a model (Model Except for those FFIs located in Model 1 IGA jurisdictions (those 1) for bilateral agreements with other jurisdictions under which that are not required to sign an individual FFI Agreement), each FFIs would satisfy their FATCA requirements by reporting participating FFI in an affiliated group will need to enter into a information to their respective tax authorities, followed by the separate FFI Agreement with the IRS. In any case, all participating automatic exchange of that information on a government-to- FFIs, registered deemed compliant FFIs (including FI located in

36 Issue 19 member contribution

with the multitude of new international obligations. One key example of this is the peer review system to assess Azerbaijan’s standards of transparency and exchange of information, which will be conducted as a part of the Global Forum on Transparency and Exchange of Information for Tax Purposes in the second half of 2014. The decision on which specific model of cooperation in relation to FATCA will be adopted for Azerbaijani financial services institutions will need to be taken very soon. It is clear that regardless of the model chosen, much needs to be done by Azerbaijani financial services institutions in order to navigate the complexities of FATCA safely and in accordance with the deadlines.

Authors' biography Nuran Kerimov is a Managing Partner at Deloitte Azerbaijan. Model 2 IGA countries) will have to register in the IRS Registration He also leads the Tax & Legal practice of the office. Nuran has portal before April 25, 2014. The reporting FI of model 1 IGA significant experience in advising both international and Azeri jurisdictions will have until the end of 2014 to register in the IRS companies and individuals on a variety of tax and associated portal. The non-reporting FI of model 1 IGA jurisdictions and business issues. Nuran has participated in numerous projects certified deemed compliant FFI will not be subject to registration related to development of corporate structures, including requirements. Once registered, the FFI will receive a Global international corporate structures for Azerbaijan based Intermediary Identification Number (GIIN) from the IRS. companies, as well as structuring investments of foreign FFIs must register between January 1, 2014 and April 25, 2014 in multinationals into Azerbaijani-based companies. order to receive a GIIN by June 30, 2014 and to be identified as His practice centers on energy and resources, pharmaceutical a participating FFI as from July 1, 2014 (date of implementation and financial industries providing international tax, corporate of FATCA withholding). FFIs that enter FFI Agreements after and individual taxation advice, with a particular emphasis on June 30, 2014 but before January 1, 2015 will be considered transactions in the former Soviet Union. participating FFIs for 2014, however they may be subject to Nuran has advised clients on individual taxation, accounting, FATCA withholding due to the lack of time to identify them as privatization, production sharing agreements, currency and participating FFIs before FATCA withholding begins on July 1, customs regulations in Azerbaijan. 2014. The effective date for any FFI Agreement entered after Nuran holds a Master of Laws (LL.M.) degree from the June 30, 2014 will be the date the FFI enters the FFI Agreement. University of Georgia, USA, and a BA in Law from Voronezh State University, Russia. Impact of banking secrecy laws Gunel Sadiyeva is a Senior Consultant at Deloitte Azerbaijan Given the conflict between bank secrecy and FATCA rules Tax and Legal Services. She has more than four years of requiring FFIs to disclose information about account holders work experience in tax and legal advising. In 2011 she joined and to report on them, local laws may need amending. Deloitte in Azerbaijan. Gunel specializes in tax review, tax audit Tax provisions that co-exist with bank secrecy rules already exist and due diligence projects. Furthermore she conducted tax in Azerbaijani tax law. Article 76 of the Tax Code requires banks trainings for financial services industry representatives. She and other financial institutions to provide the tax authorities with has wide experience with companies in the financial services, relevant information about bank accounts and operations of a construction and PSA sectors. taxpayer based on a written inquiry originated in accordance Prior to her employment with Deloitte, Gunel worked at the with international agreement concluded by Azerbaijan. Corporate Tax Department of another Big Four company in Adopting an IGA will facilitate the compliance of all local financial Munich, Germany, where she was responsible for drafting intermediaries with FATCA provisions, which would need to advices and expert opinions concerning national and be included in the local law. But even in that case, financial international tax law. She contributed to a major research project intermediaries will need to update their legal documentation on taxation legislation. From 2008 through 2009, Gunel was a (general terms and conditions, opening forms) and client Senior Lawyer at a local law firm in Baku. Her area of expertise information in order to provide the relevant information to local included representation of clients in court; contractual planning or foreign tax authorities. and surveillance; registration of newly established companies with relevant authorities; legal consulting in the field of tax, civil Conclusions and labor law. Gunel received a BA in Law and an MA in Civil and Economic Law from Baku State University in Azerbaijan. In The ever-changing global regulatory landscape continues to 2012, she obtained her L.L.M in Private and Public Economic have a profound impact on the Azerbaijan economy, notably Law from the Friedrich-Schiller University in Jena, Germany.

37 member contribution

The Mirror Effect - or What do I Look like on the Market? Aysel Suleymanova, Marketing and Communications Manager PwC Azerbaijan

Why do we look at the mirror? To understand how we appear in the eyes of others. This is very important for us. We follow trends in fashion, style, even manners and behavior, and try to keep in step with our peers. And we compare; we constantly compare, analyze and improve, striving for perfection. The same happens with the market, and especially with aa highly competitive intellectual market where you sell brain. Expensive brain . This is what goes on when businesses conduct market research in order to better understand their market position, and to make their business decisions.

Keeping a finger on the pulse

Market intelligence is as vital as measuring your pulse. Surviving in a highly competitive market, even if you are providing the best service, is always a challenge for subject of the identification of competitors and the importance businesses. It is crucial to conduct market analyses, not only of understanding of what others are offering, let me review a to fully understand your own product, but also analyze what case that happened recently at a public event. others do, to be able to compare and tailor your business model according to the customer’s needs. This is especially At a business lunch, we were sitting together with important when you sell an intellectual product that does not representatives from different local companies, one of whom have a particular measurement tool. represented a personnel recruitment business. If you ignore the differences in size and diversity, an outsider could say that According to a report by PwC’s Financial Services Institute (FSI), we both represent the same service segment. A young guy in order to maintain market share and strengthen customer in charge of business development - obviously with a vague loyalty, leading banks are implementing strategic pricing and idea on PwC’s global and local activity – commented, “We delivering a better customer experience. For example, in a actually offer the same service as you do – that means we 2010 survey, an online bank received the highest customer are competitors…” This illustrates exactly why it is important satisfaction ratings, even though it did not offer the best rates. to conduct proper market research and to communicate it Its call centers strive to personalize and optimize the customer internally to every single team member. experience, aiming to answer calls within 20 seconds.

Market analysis has two primary functions: obtaining information “Expensive Brain” and how to sell it? on key competitors, and using that information to predict the competitors’ behavior. When conducting the first part of As mentioned above, intellectual products do not have a particular the analysis, it is very important to identify your comparison measurement tool and the cost policy may vary significantly. Now base, and what they have to offer. Not every market player, the question is “How much does your brain cost?” One can never even if they offer a similar product or service, can be called succeed in ‘selling’ an expensive intellectual product without the a competitor. The size, scale, capacity and specific character right market positioning. Positioning is a marketing strategy that of a potential competitor all play important roles here. On the aims to make a brand occupy a distinct position, is very important

38 Issue 19 member contribution

first of all to conduct market research to understand your Creativity? ‘Outside the box’ thinking is very important if you advantage, and to decide how to further position yourself within want your business to survive in a highly competitive market. the market. Companies apply this strategy either by emphasizing This approach to business should be smoothly integrated into the distinguishing features of their brand (what it is, what it does the quality of your work to make it unique. and how, etc.), or alternatively they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry- According to PwC’s Global CEO Survey, innovation remains a level or high-end, etc.) through advertising. priority for businesses. Almost a third of CEOs believe that their biggest opportunities for growth lie in developing new products Developing a market positioning strategy is an important part and services. CEOs in the communications and entertainment of the research and development process. The marketing and media sectors are the most active on all fronts, whether it department may provide notes during product development means refocusing innovation efforts for existing products and which are designed to enhance the product's position, and they services or for entirely new products in new models. CEOs in also determine the price, where the product should be sold, insurance and asset management are among those most likely and how it should be advertised. Every aspect of the product's to emphasize innovation in new business models – often taking presentation will be carefully calculated to maximize its position, advantage of new technologies. with domination as the ultimate goal of market positioning. The “Expensive Brain” or a high profile service provided by However, creative and unusual business decisions should look professional business consultants is one of the most sensitive natural and relevant to your business and serve your client’s and fragile products on the market. It is always subject to cost needs. For example, fancy marketing campaigns frequently negotiations and attempts to reduce costs by finding alternative applied in FMCG sector often do not meet the needs of cheaper options. Strong positioning is required to assure your companies operating in other sectors, including professional potential customers of the quality and uniqueness of your business services. Any ‘outside the box’ element should be user- particular product. In fact, especially in Azerbaijan, there are friendly and provide an “easy to apply” procedure for clients. many ways to find an alternative low cost option. However, the risks of purchasing a low quality product are much higher Imagine this: it’s the morning of your birthday, you open a in this sector as opposed to others. This means that proper present and find that it is the exact toy you’ve wanted for so market research and analysis is required not only by a company long. You open the box to find that it comes in a million pieces seeking to provide the best service possible, but also by a client, with an instruction sheet that says, “Some assembly required.” who needs to review an extensive pool for comparison. The joy you felt when you first opened the box melts away as you struggle to put it together. Finally, you think you’re finished, but when you try to use it, it just doesn’t work. Or maybe you Thinking Outside the Box finish and it works, but now you’re too tired to play with it. Does this sound familiar? What makes you unique and unusual on the market? Innovation? To create your outside-the-box experience, you should first Which of the following do CEOs see as the main opportunity to define the experience that you want your partners to have. grow their business in the next 12 months? The next challenge is to design the specific elements that will provide that experience. These elements should be designed in harmony with one another and with the functional improvements New product or service development planned for the product. By enhancing those improvements, the overall experience will draw the customer into the product. If Organic growth in designed appropriately, these elements can improve not only existing domestic the outside-the-box experience but also the marketability of the market product. Organic growth in existing foreign market Author’s biography Aysel Suleymanova holds a Master’s Degree in Philology New operation(s) in and has more than 9 years of experience in marketing and foreign markets corporate communications. Prior to her assignment in PwC New M&A / joint Azerbaijan, she was in charge of Member Relations and ventures / strategic PR for the American Chamber of Commerce (AmCham) alliances in Azerbaijan. Aysel’s wide breadth of experience features 0 20 40 marketing, brand, event and project management as well as All CEOs % of CEOs business development in private and public sectors.

1 International Business Machine. Designing the Outof-Box Experience. (accessed 2001, January 30): http://www-3.ibm.com/ibm/easy/eou_ext.nsf/publish/577 2 PwC’s Global CEO Survey: http://www.pwc.com/gx/en/ceo-survey/2012/key-findings/index.jhtml 3 PwC’s Financial Services Institute’s (FSI) report: www.pwc.com/en_US/.../viewpoint-when-the-growing-gets-tough.pdf

39 development & education

Contributing to training of world class project managers in Azerbaijan

(FOTO – BP and Co-venturers, ESI, Khazar - Graduation Event)

Guivami Rahimli, Century”) with a consortium of international oil companies. Kenan Shikhlinsky, This agreement heralded the beginning of the new chapter in BP Azerbaijan Georgia the country’s oil and gas history and signified a key milestone Turkey Region in transforming the nation’s economy.

A consequence of the sustained economic and industrial growth has been the rapid increase in demand for qualified project managers, able to lead in-country construction, commercial The history of the oil industry in Azerbaijan dates back to development, infrastructure, agriculture, education, banking, ancient times, with the mechanical production of oil beginning telecommunication, IT and public services projects. in the 19th century. By the beginning of the 20th century, Azerbaijan was supplying a significant amount of the world's To help the country meet this demand with local experts rather total demand for oil, during a boom that saw the creation of than rely on foreign resources, and as part of BP and its co- hundreds of companies engaged in oil production and turned venturers long term commitment to Azerbaijan, they started Baku into one of the industrial centers of the world. a School of Project Management (SPM 1) in 2011 which provides private and public sector representatives with access In 1994, the Government of Azerbaijan signed a Production to a globally-recognized, comprehensive project management Sharing Agreement (often referred to as the “Contract of the training programme.

1 For more information about SPM please visit www.spm.az and Educational Initiatives section of BP in Azerbaijan Sustainability Report 2012 http://www.bp.com/ sectiongenericarticle.do?categoryId=9029687&contentId=7054436

40 Issue 19 development & education

Since that time SPM has become a highly successful Ministry of Education for provision of training as part of their initiative, measured against its primary objective to develop “Public Investment in Capacity Building” project. This includes Azerbaijan’s first talent pool of home-grown, highly qualified training of 30 government representatives across ministries. project managers, working to internationally-renowned For this purpose the entire training curriculum and international certification standards. To date SPM has had two high profile project management standards have been translated into graduation ceremonies, and has awarded over 130 Masters Azerbaijani enabling non-English speakers’ access to this Certificates from George Washington University. In total, programme. 229 participants have attended SPM, representing some 96 private and public sector organizations. These organizations According to the Project Management Institute, some 15.7 are now turning to the trained individuals to establish project million new project management roles will need to be created excellence and deliver results. Many are also earning the globally just to keep up with demand – and many of these Project Management Professional (PMP®) certification from roles will sit in emerging markets such as Azerbaijan. Thanks the Project Management Institute (PMI®). to initiatives such as the SPM and the commitment of BP and its co-venturers to provide Azerbaijani citizens with the The SPM curriculum leads to two globally-recognized opportunity to receive world–class training of the highest certifications: the "Masters Certificate in Project Management", quality, Azerbaijan is stepping ahead of the game and will be awarded by the George Washington University (GWU), and well placed to capitalize on the project management boom. the "PM Professional" certification, awarded by the Project Management Institute (PMI). It consists of seven separate Many local organizations recognize the value in developing modules, delivered over a period of 10-12 months: ‘Managing their project management capability, and one of the first to Projects’, ‘Project Leadership, Management and Communication’, enrol staff in the program was Absheron Engineering LLC – a ‘Risk Management’, ‘Scheduling and Cost Control’, ‘Quality for mechanical and electric engineering company based in Baku. Project Managers’, ‘Project Management Applications’, and “We live in a competitive world of business where you have to ‘Project Management Professional (PMP) Exam Preparation’. implement ways of reducing cost and resources on any given project. Qualified project managers are the most important tool According to Huseyn Mamedov, BP’s Vice President, in using your resources efficiently and minimizing your costs” Communications, External Affairs and Security, BP is pleased to states Absheron employee Ertogrul Musayev who graduated see this initiative turn into a successful and credible educational through the SPM program in 2012. Asked about the personal project. “We are very pleased that it supports Azerbaijan’s efforts and organizational benefits of attending the program, Ertogrul to raise the quality and standards of non-oil sector management commented: to international requirements. Therefore we are particularly pleased that the number of non-oil sector representatives “SPM will definitely contribute to a lot of young, knowledgeable, has this year prevailed that of the oil and gas sector. We are ambitious professionals, capable of effective management of encouraged by this fact and are confident that the School of various projects as it did for me. After graduating from SPM I Project Management will continue to achieve the objectives that was assigned to several small to medium sized projects in the BP and its co-venturers had set for it when it was established. Caspian region and I’m proud to say our Project Management The overall results are encouraging and we remain committed team has successfully delivered a number of strategic projects to supporting this type of major educational initiatives aimed at on which I have used all the knowledge and skills I gained from enhancing Azerbaijan’s capacity-building efforts”, he says. the SPM modules, to ensure success”.

The BP and partners built SPM has already entered an This is a scenario that we hope is taking place in many of expansion phase. It was recently awarded a contract by the the other organizations who have sent employees through the

41 development & education

SPM curriculum. Our expectation is that by providing the right Author’s biography training to the right people, local project managers will be given Guivami joined BP in 1995 as Government Relations Expert more and more responsibility for delivering their organizations’ and since that has held various managerial positions. Currently key strategic projects. he serves as Sustainable Development Initiative Manager for BP Azerbaijan. Now that the seven courses that make up the curriculum Guivami is recognized industry professional in the field of have been translated into Azerbaijani, SPM can offer the best energy security and has broad experience in subjects related that exists in international project management training, to to Government Relations, Social Risk, NGO Management and Azerbaijan’s experts. Community Development. He also serves Associate Professor at Faculty of International The success of SPM, which has gained an outstanding Relations at Baku State University and teaches energy reputation for delivering high quality training, has been made security classes. possible thanks to the partnering institutions. The training Guivami has also received his PhD from Moscow State delivery is provided by a leading project management training Pedagogical University and solutions company - ESI International, in collaboration with the Khazar University. The course instructors are provided Kenan is a qualified specialist in project management with by ESI and all have a vast amount of experience in industry broad ranging experience in developing, managing and managing large, complex projects. This experience they consulting on a variety of projects in the oil and gas sector, bring to the class room is a key factor in helping participants related to corporate responsibility, localization, nationalization, understand the theoretical concepts and learn how to apply social and non-technical risk management. them when back in their workplace. Joining BP in 2007, he is currently responsible for leading a diverse portfolio of Sustainable Development projects that As part of their commitment to the region, BP and its co- support BP’s strategic focus on matters including localization, venturers continue to work on multiple initiatives with an nationalization and social risk management. overarching strategic objective to support sustainable Kenan holds MBA from Azerbaijan State Oil Academy and is development of local enterprises and communities. Certified Project Manager with George Washington University.

42 Issue 19 development & education

Investing in Tomorrow’s Employees Youth Business Leadership Project

Hokuma Karimova Executive Director Junior Achievement Azerbaijan

The Youth Business Leadership Project, one of Junior Achievement Azerbaijan’s programs, is designed to provide undergraduate students with the valuable work experience, by working directly with business professionals who are committed to helping youth to become better prepared for their professional careers. The students, through access to a real business environment, learn about the work from inside; this enriches their understanding of how businesses work. The project is co-financed by the United States Agency for International Development (USAID), BP and its co-ventures on Azeri-Chirag-Gunashli, Baku-Tbilisi-Ceyhan, Shah Deniz, and the South Caucasus Pipeline, and is implemented in partnership with the American Chamber of Commerce in Azerbaijan.

The project provides students with opportunities to Group, Ateshgah Insurance, Certus Pharma LLC, and the US gain real world employment experience through paid Azerbaijan Education Centre. internships at private companies, helping them to develop business management knowledge and work- Junior Achievement Azerbaijan is proud to announce that as readiness skills. The primary purpose is to empower a result of this project, three students from Azerbaijan State the next generation of business leaders in Azerbaijan Economic University have been employed, by Azerfon LLC, by providing undergraduate business students with the Reform Centre, and Procter & Gamble. Nijat Akhundov was opportunity to gain real experience through an internship hired by Azerfon LLC as a Junior Analyst at Sales Performance at various private companies. This also provides them with Analyzing Department; Lachin Kamilov is currently working at mentorship opportunities from successful businessmen the Reform Center as a Project Manager; and Zaur Khalilov and businesswomen, as well as networking opportunities received a job offer from the Azerbaijan office of Procter & with like-minded peers. Gamble. Since July Zaur has been working as Director of Consumer Marketing in the Marketing Department. Since its inception in October 2012, 75 students have benefited from the project, from Azerbaijan State Economic The students are very much aware of the importance of this University, Baku State University, Qafqaz University, project in relation to the professional development of the Khazar University, and Azerbaijan State Oil Academy. The young generation. “This is a rare opportunity, to be involved in participants have had the unique chance to gain work- such a project and to learn business skills first-hand. We saw readiness skills at Azerfon LLC, AECOM, Madad Azerbaijan, the importance of seeking careers that would help us to realize Reform Centre, FINCA, Seabak, Hyatt Hotel, Golden Pay, our life potential. The project demonstrated the importance Expert SM, Azerms LLC, Pulse R, SOCAR, FESCO, IMA of positive values, life maxims, and ethical decision-making Energy, BP, AzQTel LLC (SAZZ Internet provider), Synergy within the context of career and life decisions. As well as

43 development & education

gaining valuable work experience, during the internship them to make mature business decisions and to manage their we also receive salaries, and feel like real employees,” say career development. students upon completing the project. Author’s biography Junior Achievement Azerbaijan is the local representative Hokuma Karimova graduated from Khazar University with a of Junior Achievement (JA) Worldwide, the world’s largest major in International Relations, and contunied her studies at organization dedicated to educating students about work Wartburg University, Iowa, USA. readiness, entrepreneurship and financial literacy through experiential, hands-on programs. Junior Achievement She joined Junior Achievement Azerbaijan in 2008 and was programs help to prepare young people for the real world involved in implementing projects that sought to increase by showing them how to generate wealth and effectively economic and business education among high school and manage it, how to create jobs which make their communities undergraduate students. After a year with JAA, she undertook a more robust, and how to apply entrepreneurial thinking to new challenge, working as Director of Economic and Commercial the workplace. Junior Achievement Azerbaijan was founded Relations Department at the Embassy of Israel for five years. in 1998 and has since trained thousands of high school and In October 2013, Ms. Karimova was appointed as Executive undergraduate students through funding from the public and Director of Junior Achievement Azerbaijan, which networks with private donors. 260 schools and 12 universities in the Republic of Azerbaijan.

Junior Achievement Azerbaijan is expanding its network of companies who host interns within the Youth Business Leadership Project, and invites businesses and organizations to join this initiative and to provide students with the opportunity to learn about career paths first hand. The knowledge and skills that students learn during the internship program help

44 Issue 19 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 270 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.

45 AmCham Azerbaijan

Government Relations “regulation of prices on drugs”. AmCham was informed that these norms have not yet been drafted, but the research and study visits have already taken place. It was agreed that the parties would cooperate further in relation to the law drafting and meet at a prospective bilateral meeting. AmCham also met the well-known scientist and Head of the National Oncology Center, Jamil Aliyev, who showed a great concern for the abovementioned issues and has promised to support AmCham in its endeavors. On 25th of November AmCham’s Board of Directors hosted the US Congressional Delegation. The meeting was dedicated to strengthening the interstate relations. Parties mainly discussed the possibility of abolishing any obstacles for the direct aid to Azerbaijan (section 907); inter alia increasing the US business presence in the state. AmCham also mentioned the “Visa facilitation program” which would be provided by the U.S Embassy to the members of AmCham. October – December 2013 The Executive Director had a phone conversation with the AmCham Azerbaijan is regularly involved in initiatives to Minister of Labor and Social Protection, who cooperates promote a healthy dialogue between the member companies with AmCham on issues related to the legal and business and Azerbaijani officials. On a regular basis AmCham meets development. The Minister promised to keep this important directly with the representatives of the US and Azerbaijani partnership open and attend the forthcoming events of governments and addresses sector-specific issues affecting AmCham. a wide range of members. The issues often include: drafting On 10th of December Executive Director met the Head of and revision of laws that address the business environment the State Migration Service, Firuddin Nabiyev, who was in the state, tax and customs policies, banking, finance, deeply concerned with the obstacles in the registration of insurance, human resources, telecommunication, information foreign nationals and assured AmCham of his willingness to technologies (IT), tourism, anticorruption measures and cooperate. Mr. Nabiyev confirmed that AmCham’s requests transparency. are always placed on a high priority list. Considering the ongoing reforms in the social protection Based on our continuous cooperation with the Ministry of field, AmCham was keen to comprehend the roadmap of the Communications and Information Technologies, AmCham reforms planned by the State Social Protection Fund (SSPF). met the Deputy Minister Mr. Velizadeh and addressed certain Therefore on 25th of October the Head of Finance-Budget essential issues regarding technologies. Mr. Velizadeh was Department of the SSPF, Mr. Idris Isayev, met the members at very well informed about the matters and even argued that the Tax and Customs Committee and generally explained the certain issues were already settled, meantime he stated “Concept” of the reforms. He stated that SSPF had conducted his desire for the subsequent strengthening of the bilateral a research and took into the consideration the best practices relations. of the western jurisdictions. Mr. Isayev was positive about Amcham had also participated in the events organized by the arranging the prospective meetings and updating members state bodies and agencies. on the drafts. In a continuation of our advocacy efforts to protect the pharmacy market of Azerbaijan from the counterfeit products and illegal parallel import, AmCham contacted the Analytical Expertise Centre for Medicines (AECM) and the State Service for Antimonopoly Policy and Protection of Consumer Rights (SSAPPCR). On 21st of November AmCham met the Head of the AECM, Abulfaz Abdullazadeh, to discuss the general action plan and the current situation in the market. It was agreed to cooperate further in combating the import of illegal and counterfeit medicines. On 25th of November AmCham met the Head of the Department of Natural Monopolies and State Regulation of Monopoly Services (of SSAPPCR), Metin Badalov, to discuss the law drafting related to the

46 Issue 19 AmCham Azerbaijan

Business Events Monthly Members’ Luncheons

Caspian Contractors, Itochu oil exploration, British American October 2013 Tobacco Limited, AZEL, PwC Azerbaijan and Verizon Business

In October AmCham hosted a very special luncheon. “We The trailer of AmCham Black & White Vogue Ball 2013 have never had such luncheon before,” commented Movlan and the latest updates of the M2M (member to member) Pashayev, AmCham board member and Managing Partner of discount program were presented to members. After the PwC. The invaluable loyalty and continuous cooperation of our award ceremony, which included a short speech from each gold members, who have been involved with AmCham for over recipient, a giant cake was cut. Photos of this wonderful event 15 years, was awarded. Among them were: SI Travel, Sinam can be viewed on the AmCham website. AmCham would LLC, Unibank, Salans FMC SNR Denton, BP Azerbaijan, like to express its great appreciation to its loyal members for Bestcomp Group, Baker & McKenzie, Baku International being involved for more than 15 years, and for supporting School, Chevron, US Embassy, Emerson LLC, Ernst & Young, all of AmCham’s activities goals. AmCham is committed to Exxon Azerbaijan limited, Hyatt Hotels Baku, KBR, McDermott sustaining and building lasting cooperation with its members!

47 AmCham Azerbaijan

December 2013

The main focus of AmCham’s December Members’ Luncheon was the continuation of the Loyalty Awards. This month we were celebrating AmCham Silver Members, companies that have been with AmCham for more than 10 years: AA Services, AIT – HRG Azerbaijan, AIT – HRG Azerbaijan, ASPI Consulting Engineers Inc., Ata Bank JSC, Azercell Telecom LLC, Azertrans LTD, Bakcell LTD, BayHolding Investment Limited, Cameron Petroleum Equipment Group Inc, Chartis Azerbaijan Insurance OJSC, Deloitte & Touche LLC, Holcim (Azerbaijan) OJSC, Globalink Logistics Group Ltd, Hewlett Packard, International Bank of Azerbaijan, International Insurance Company, Lufthansa, McDonald’s Azerbaijan, MGB Law Offices Limited, Middle East Petrol Farm, Moore Stephens Azerbaijan, Panalpina, Procter & Gamble Inc. Azerbaijan Branch., R.I.S.K., Seabak LLC, SkyLife Travel, Statoil Apsheron AS, Total, Universe Azerbaijan, World Vision, YapıKredi Bank Azerbaijan Ltd. invaluable source of information about the country’s labor market. This month also marked the completion of AmCham’s National Employee Salary Survey. This year’s report was In addition, an amazing new member benefit – the Visa the most comprehensive to date, containing information Facilitation Program - was launched with the US Embassy in on the employment conditions in 130 leading foreign and Baku. This is designed to significantly ease the application local companies operating in the country, and salary process for US visas by employees of AmCham member information for over 38,000 employees. The report is an companies.

48 Issue 19 AmCham Azerbaijan

Projects 2013 Annual National Employee Salary Survey With 130 companies participating • FMCG and Pharmaceutical sector Jobs Surveyed AmCham Azerbaijan completed its 15th report Annual National Salary Survey and • Regional employees report- the Forty three job families have been released the final report to all participating questionnaire has a page for those identified: companies in December 2013. The individuals that are employed outside survey gives a detailed report on terms Baku, in the regions and are paid on • Management of employment and benefits provided by different pay scale. • Administration & Support the leading foreign and local companies • Top 20 highest employers report • Audit and organizations operating in Azerbaijan • Banking covering issues like insurance, meal Method of Survey • Business Development allowances, salary planning methodology, The Survey is completely confidential; the • Conferences & Events housing, redundancy payments and information submitted by the participants • Customer Care/ Services retention schemes used by companies as is not disclosed to anyone. The data has • Drilling Engineering well as remuneration figures for more than been collected anonymously through a hundred different positions. a Confidential Code Procedure, hiding • Driver The outcome of the survey is presented company identity. All data was destroyed • Engineering / Construction in the form of nine separate reports: on publication of the survey. AmCham’s • Finance/Accounting secured software ensures highest levels • Food & Beverage Service • General report for all of the of confidentiality and efficiency of the • Fraud Expose participating companies survey process. Our survey is open for all • Guest Services • Oil & Gas sector report our members as well as the companies • Housekeeping & Laundry • Banking sector report outside of the membership. Participation • Human Resources • Information and Telecommunications in the survey is free of charge. Results, • Health Safety Environments sector report however, are only available to the • Information and Communication • Oil & Gas Services sector report companies that have participated, Technologies • Hospitality sector report members and non-members. • Insurance • Insurance claims Average Salary Increase • Interpreter/ Translator 25% • Kitchen • Lending/Credit 22.50% • Marine Specialists 20.56% • Marketing 20% 18.79% • Medical • Offshore Technician Staff 17.48% • Oil & Gas/ Facilities Engineering 14.56% • Public & Government Relations 15% • Purchasing, Warehouse & Logistics 12.14% • Quality Control 11.05% 11.12% • Quality Management 10% 10% 10.07% • Risk Management • Sales & Market Support • Security • Semi-Skilled/ Manual Worker 5% • Skilled • SPA & Recreation • Stewarding • Subsurface Staff 0% • Tax and Legal • Training 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 • Other

49 AmCham Azerbaijan

15 years with AmCham: more than membership

and rewarding. However, the building of a multi-million five-star hotel complex and the opening of a Chamber of Commerce have not been the ultimate success factors here. Mutual success has come through the unparalleled focus towards the famed global standards of the Hyatt brand The opening of Hyatt Regency Baku in 1995 was a momentous on one side and the unflinching pursuit of the mission and event in the business life of the Republic of Azerbaijan as it values that AmCham stands for worldwide. marked the arrival of the first international five-star hotel to the The partnership has seen the creation of a platform where country. While many may have questioned the logic behind this today representatives of leading local and international investment decision made by Hyatt Hotels Corporation in those companies meet to discuss matters of mutual interest, many early years in the life of the Republic, it was a visible recognition of those that also have far reaching impact on the economic of the country’s leadership and the economic potential on health of the country. Not only has AmCham become a display. Shortly after, in 1996, President Heydar Aliyev officially critical networking link for the business establishments in the announced the opening of the American Chamber of Commerce. country, it is also a strong voice that very ably puts forward Setting up AmCham in Azerbaijan was another endorsement of corporate concerns to the various arms of the government. the vision displayed by the leadership of the nation as it was an Its unbiased stance has only ensured that not only is this important step in placing the country on the world business map. voice respected but also heard. On its part, Hyatt Hotels Baku has grown from a single hotel to It is no coincidence that this announcement was made at the be a multi-use complex with hotel rooms, restaurants, fitness Hyatt Regency Baku itself. With this, both AmCham and Hyatt and wellness services, residential apartments and commercial Hotels Baku have walked the path of history together and as space. With their respective dedication and efforts, both very close partners’ right since those early years. AmCham and Hyatt Hotels Baku are only delighted to continue The journey since those nascent years has been memorable to serve the business community in the destination and globally.

occupies a special place amongst them. Collaboration between American Chamber of Commerce and SINAM has successfully been developing for over 15 years. SINAM highly appreciates it and does its best for the further development of these collaborative relations. American Chamber of SINAM was founded in 1994 as one of the first IT companies Commerce in Azerbaijan promotes the business interests of in the region. The company is recognized as e-Government SINAM in ICT sector by working to improve the ICT business solutions provider and system integrator in Trans-Caspian climate in Azerbaijan and by providing services to SINAM. and Middle Asia regions. SINAM is a member of American This cooperation perfectly fits the strategic policy of the Chamber of Commerce in Azerbaijan since July 1998. independent Republic of Azerbaijan in the ICT sector. SINAM SINAM always tries to establish ICT collaborative relations appreciates the cooperation established with American with the organizations of the most countries of the world Chamber of Commerce in Azerbaijan and will always remain and American Chamber of Commerce in Azerbaijan faithful to these collaborative relations.

Baku International School

50 Issue 19 AmCham Azerbaijan

Chevron is proud to be one of the in Azerbaijan. Through Amcham, government agencies have founding members of AmCham in received in-depth white papers and other advocacy documents Azerbaijan. The company hosted thoughtfully written by AmCham and its committee members. AmCham’s first office and Chevron As a gathering place, AmCham has provided a venue for has been pleased to serve on the business people to connect and to encourage development of Board and many committees. a vibrant and diverse economy. Member companies have had Throughout its history AmCham the opportunity to contribute significantly to the communities has advocated on behalf of through cultural, social and charity events, and through the business community with investment in improving the country’s health, education, government and communities making business a more infrastructure, and economic development. valuable partner in the growth and prosperity of Azerbaijan. As Chevron and our partners in the Azerbaijan International Operating a forum where many members voice their views on changes Company and the Baku-Tbilisi-Ceyhan Pipeline congratulate in laws and regulations, Amcham has made it possible for AmCham on its 15th anniversary and wish all businesses and business people to be heard at the highest levels of leadership entrepreneurs the best of success in in Azerbaijan.

Alongside many other services, this program enabling McDermott to significantly enlarge the American Chamber of our own CSR activities and further contribute to sustainable Commerce in Azerbaijan development of the country.” provides member companies with McDermott plays an active role on the AmCham CSR excellent possibilities to expand Committee (CSRC) and has significantly contributed to their contribution to society and developing Committee strategy, priority areas of activities and address local community needs. first ever AmCham’s CSR Guide, which provides tools and McDermott Caspian Contractors, methods required to design and implement CSR programs. Inc. (McDermott) was one of McDermott also participated in the recently launched CSRC the first to benefit from this opportunity. For many years, newsletter produced to raise awareness of, and share best McDermott has provided constant support to AmCham’s practices in, CSR among member companies. “We welcome social projects ranging from sponsorship of public events this initiative and are confident that it will be as successful as to donations to orphanages. “No doubts, this is a win-win other socially oriented projects initiated by AmCham for the relationship that helps AmCham and member companies benefit of business community and society in Azerbaijan,” attain better results together,” says Ian Cochran, Senior comments Ian Cochran. Director, Caspian Operations. “We very much appreciate

readily supported its initiatives. We assisted with the registration of AmCham and from that point onward we continued to contribute our legal expertise in connection with current and proposed Being the first foreign law firm to receive a license to practice legislation, including the Law on Copyright Protection, the in Azerbaijan, the Dentons Baku office was established as Competition Code, the Migration Code, the Labor Code and the Wicklow Group in 1996, which joined the international law firm Tax Code. Working together with AmCham, we hope to continue Salans in 1999. In March 2013 Salans combined with two other to improve the Azerbaijani legislative framework and practice. international firms, SNR Denton and FMC, to establish "Salans In this joint long journey, we have seen many challenges facing FMC SNR Denton," a global law firm of 2,600 attorneys at 79 the business community and the government, but so many of the locations in 52 countries. The firm is known globally as "Dentons." difficulties that we have encountered have been overcome, resulting in successes for AmCham and its members. We are honored to Ever since the beginning, we have engaged actively in the have been a member of AmCham since its creation in Azerbaijan. activities of AmCham, including its many committees, and have We look forward to many more successful years to come!

IT's our business

51 AmCham Azerbaijan

Committee Highlights

7 November 2013 Travel, Hospitality and Tourism Committee members gathered together for the introduction of the new Deputy Chairman of the Committee- Ms. Natalia Solovieva (PASHA Travel). They also enjoyed a presentation on the Hotel Exchange Permission by Shahin Mammadov, CFO and Board Member of Pasha Bank, as well as and the latest legislative updates in the tourism industry, by Orhan Musayev, AmCham Azerbaijan’s Legal Policy Officer.

19 November 2013 The Corporate Social Responsibility Committee members met to brainstorm the Committee’s Strategic Plan for 2014.

22 November 2013 The Tax and Customs Committee held a meeting to discuss the 17 October 2013 legal and practical aspects of the ASAN Imza Service. The ICT Committee meeting focused on the findings of the survey on consumer attitudes towards e-payment in Azerbaijan, 25 November 2013 presented by Sabina Mirzayeva from Milli Kart. The meeting At the Banking, Finance and Insurance Committee meeting, also considered issues surrounding cooperation with the CSR Jamal Shahverdiyev, certified business coach with ACC-level Committee on the joint social events. accreditation from the International Coach Federation (ICF), gave a presentation on HR challenges and possible solutions: 25 October 2013 the creation of mechanisms for sharing information among Tax and Customs Committee members welcomed Idris Isayev, organizations, including recommended service providers and Head of the Finance-budget department of the State Social lists of unreliable employees. Protection Fund, who joined the meeting to give a presentation on "The latest developments on social contributions". The Tax and Customs Committee also invited AmCham HR Committee members to join the meeting, due to the relevance of with Mr. Isayev’s presentation.

29 October 2013 The Human Resources Committee invited staff from Junior Achievement Azerbaijan to discuss recent activities within Young Business Leadership Project, funded and implemented with support from BP Azerbaijan, USAID Azerbaijan and AmCham. Committee members also discussed latest developments on social contributions and various initiatives for the working group that is collaborating with the Ministry of Education.

29 October 2013 Banking, Finance and Insurance Committee held a meeting on Customer service and quality requirements for servicing organizations in financial area. Transparency of services to customers, presented and led by Edqar F. Abdullayev,Head of the Unit of Incoming Contact Management, Azercell Telecom LLC.

30 October 2013 Corporate Social Responsibility Committee met to welcome new Deputy Chairman of the CSR Committee - Ms. Aynura Piriyeva from Pasha Bank, to discuss the next CSR Newsletter and to get more information from the presentation by “Clean World Aid to Women” Public Union.

52 Issue 19

AmCham Azerbaijan

AmCham Legal Update

than once a year, not more than once every two years for the Presidential Orders average risk group, and not more than once in three years for low-risk entrepreneurs. According to the plan, the inspection State Strategy for the development of education in the period for medium and small businesses is 5 days, while the Republic of Azerbaijan inspection period for large businesses may be up to 10 days. According to the strategy document, secondary education in Consequently in the event of unplanned inspections, large Azerbaijan will be a 12-year program. The first ten years of the businesses will be inspected for not more than 5 days and new system is mandatory, and the remaining two years are medium and small businesses are to be inspected for not more optional. A period of one-year compulsory education is expected than 3 days. Inspections should be electronically recorded. in the preparatory school. The document provides for the establishment of the National Qualification Framework for lifelong On amendments to the “State Registration and State learning and its implementation. The document also mentions the Registry of Legal Entities” development of public policy in order to increase the prestige of According to the amendments, a commercial entity wishing to the teaching profession, increased salaries for teachers (1.8-2 gain legal status, including state registration of representative times higher), and establishment of the internship model. Tuition offices and branches of foreign commercial entities, must fees for public and private higher education institutions will be be carried out within 2 days. Expedited electronic state abolished, although fees for international education programs will registration of limited liability local investment groups must remain in place. An “Education Development Fund" will be created be done immediately, and the conventional electronic state with the extra budgetary funds. According to the document, registration must not take any longer than one day. management of educational institutions in the academic, financial According to the amendments, foreign non-profit organizations, and organizational fields will enjoy greater autonomy. Educational branches or representative offices that operate without state institutions will be governed by the respective Parent-Teacher registration and without being listed on the state registry will Association, Governing Council, Board of Trustees and others. To be punished as defined by the law. generate competition between educational institutions, the creation of a rating system is considered in the document. The strategy On "Public Participation" promotes the establishment of campuses in the universities. The new law, which consists of 4 chapters and 20 articles, contains fixed organizational and legal forms of public participation: prima Laws facie the Public Council, public debate, public hearing, the study of public opinion and public assessment. The Public Council is a “Law on regulation of the inspections in the field of consultative institution attached to the executive authorities and business and protecting the interests of entrepreneurs” local municipality, with a three-year term of office. Every citizen The new law defines three risk groups. The inspections for over 18 years old who is eligible to vote can become a member entrepreneurs in the high-risk group are carried out more of the Council. The Public Council is elected by the civil society

54 Issue 19 AmCham Azerbaijan

institutions, in accordance with the provisions established by the On “Setting up duty-free stores and rules regulating their relevant executive authority and with regard to the requirements activities” established by law. Council members will not receive any salary, The operation of duty-free stores will be overseen by the respective remuneration, compensation or any other benefits in return for local customs authorities. The State Customs Committee of the their service on the Board. Republic of Azerbaijan will issue permits for the establishment of the stores. Duty-free stores will be established in the customs On amendments to the Civil Code control zone of the international airport, the international sea port The amendments stipulate the introduction of a penalty for and customs zones of customs control checkpoints. Other zones intentional reception of the official declaration that confirms of customs control can be created for foreign diplomatic missions creditors’ solvency to cover all claims of the liquidated legal entity. and consulates in the Republic of Azerbaijan, heads and The penalty for officials is 1,000 AZN. The amendments also set members of the diplomatic staff, as well as for family members the liquidation period of the legal entities at a one-year maximum. living with them.

On amendments to the law on “Grants” On amendments to the “Rates of customs duties on According to the changes to the preamble of the law, the law import-export operations in the Republic of Azerbaijan" will regulate the economic and legal relations related to the Exemptions on customs duties for goods imported via foreign provision, receipt and use of grants, including any registered funding are abolished. According to the amendment, goods assistance allocated to different purposes. Previously, such imported for the purpose of project implementation vis-a-vis assistance was not regulated by law. the loans and debts provided by the foreign individuals, legal Following another change, donors (individuals and legal entities entities, foreign governments’ and international organizations, in Azerbaijan, as well as their branches or representative as well as imported on basis of Azerbaijan’s shares in those offices) which provide grants to foreign recipients must submit projects are eliminated from the very list. According to the grant contracts for registration. Those grant contracts must decision, the changes do not apply to the goods imported and be submitted for registration by the Azerbaijani recipients linked to free financial aid, grants and technical assistance. themselves. Relevant information on the state budget grant should be submitted to the registration authority by the donor. “On implementation of the valuation process of the Registration requirements of the grant agreement shall also exported and imported goods” apply to additional contracts related to grants, as well as any Evaluation of imported and exported goods from the territory changes to timing, goals, and amount. of Azerbaijan will be in accordance with the new law "On According to yet another change in the law, banking or any Customs Tariffs". In this regard, decision № 316 of the other operation on unregistered grants will not be conducted. Cabinet of Ministers of Azerbaijan abolished the “Rules for the Also relevant executive authority shall at least once a year implementation of the system of customs valuation of goods publish summary information in the media about the grants imported and exported to/from the territory of Azerbaijan", provided by individuals and legal entities and those received approved by the Cabinet of Ministers № 7 of 12 January 1998. by the Azerbaijani recipients. According to the law "On Customs Tariffs", which was approved by the President on June 13, 2013 (№ 687 -IVQ) and Cabinet of Ministers Resolutions which entered into force on September 13, customs valuation should be carried out in accordance with the general principles New Resolution on “Payment of customs duty debt by applied in international practice (Article VII of the General using guarantees” Agreement on Tariffs and Trade 1994 - GATT). Customs In order to guarantee the current or future payments of the valuation is carried out in accordance with the Customs Code debtor or the future debt owners, the customs authorities of Azerbaijan. are entitled to demand guarantees as follows: the mortgage, promissory note guarantees, bank guarantees, and transfer The application of the GATT principles is one of the basic entry of the payable amount on the deposit account of the customs requirements for the World Trade Organization (WTO). This authorities, insurance contracts, advance payments and third agreement determines the customs value as the price actually party guarantees. When the customs duty is provided by one paid or payable for the goods sold for an export to Azerbaijan, of the listed securities, the debtor has 14 to 60 days to pay his with the adjusted additional charges to the final price. The text of debts. the GATT (Article VII) states that: "Evaluation of imported goods for customs purposes should be based on the actual value of the On amendments to the "List of Electronic Services" imported tollable merchandise, or a similar product and should “ASAN” will additionally manage the receipt of requests and not be based on the value of merchandise of the national origin or documents for the purpose of receiving feedback on projects on arbitrary or fictitious estimates." The very article provides the proposed by state bodies regarding electronic services and principles of transparency and stability of the rules determining information systems. “ASAN” will provide information about the customs value, the implementation of these rules in practice the online queue for users of “ASAN” services, as well as on allows to “determine with a reasonable degree of accuracy the the final document delivered to the service recipient. value of goods for customs purposes”.

55 AmCham Azerbaijan

Social Events 9th Annual Black & White Ball, October 2013

On Saturday, October 5th, 2013 American Chamber of Commerce hosted its annual Black & White Ball for members and friends. “Vogue” was the theme of this year’s ball. This tremendous event is the highlight of AmCham social calendar. This spectacular evening of elegance, fashion show of the new collection of the famous atelier “Jan” and jewelry of Faro by Ant Hill , music and dancing gave AmCham members and partners an opportunity to entertain clients, colleagues, and business associates in a unique ambiance.

“The ball was truly a ball! Everyone looked so fabulous. The decorations in the foyer were sensational. The ongoing video in the dining room was so much fun. The food was delicious. The fashion show electric. Everyone had such a good time. There was something very special in the air. How fabulous that something as special as that happens every year.” Faith Morningstar, spouse of the US Ambassador to Azerbaijan

With the unprecedented number of 551 guests among which were Ambassador Morningstar with his wife, a number of other ambassadors and high ranking government officials the ball took place on October 5th in the spacious and stunning ballroom of the Fairmont Baku Flame Towers.

The gold sponsors of the event were Nar Mobile and PASHA Bank. The silver sponsors of the event were Baker Hughes and FARO by Ant Hill. The bronze sponsors were: Lufthansa, JW Marriott Absheron Baku, Philosophy Travel, Jumeirah Bilgah Beach Hotel, Holcim (Azerbaijan) OJSC and PwC Azerbaijan. The general sponsors were: Chevron, Fairmont Baku, Hilton Baku, Hyatt Hotels Baku, The Landmark Hotel Baku, Excelsior Hotel, Ambassade de la Beaute, Zadig & Voltaire, Kempinski Hotel Badamdar Baku and Indian Clinic.

56 Issue 19 AmCham Azerbaijan

57 AmCham Azerbaijan

Members’ News and Events

PASHA Travel has obtained ISO 9001:2008 quality management system certificate. We are proud to share a successful achievement of our company. PASHA Travel has been awarded ISO 9001:2008 quality management system certificate in provision of travel services matching the international standard. We constantly improve the quality of our work and services provided in order to exceed our customer’s expectations.

Youth Business Leadership project

During its 20 year presence in Azerbaijan experience through internships at various private companies. BP has been involved in major educational AmCham assisted in identifying internship opportunities for projects, aimed to create sustainable 120 project participants who were selected among university development opportunities for young people. students from Baku and Ganja. In December 2012 BP and its co-venturers, in partnership with the United States Agency Within its first year the project held presentations in Azerbaijan for International Development (USAID) State Economic University, Baku State University, Azerbaijan and the American Chamber of Commerce State Oil Academy, Azerbaijan Diplomatic Academy, Qafqaz (AmCham), launched a two-year Youth Business Leadership University, Khazar University, Ganja State University, Ganja project in support of professional development of the next Agricultural University and Ganja Technological University. generation of business leaders in Azerbaijan. 75 students benefited from the trainings on business ethics and finance, and then took part in internship/mentorship The purpose of this project was to empower young students sessions in reputable local and foreign companies and banks. to become entrepreneurs and future business leaders by Some of them have already received employment in Azerfon, providing them with opportunities to gain real world employment Reform Centre and Procter & Gamble companies.

58 Issue 19 AmCham Azerbaijan

Deloitte expands its corporate social responsibility activities to the regions of Azerbaijan the children most in need of care, attention, and love. Helping families and children in need in the communities where Deloitte operates remains the company’s primary value and a key component of its corporate social responsibility strategy. The trip to the Community-based Rehabilitation Center in It all began one day in December when staff at Deloitte decided Bilasuvar has been a highlight of the year. This is the least we, as to put up a symbolic New Year wish tree in the office, using community members, can do for children in need, and it is really names of kids with a range of disabilities. Each Deloitte team important to spend at least a day with these wonderful kids and to member picked one name and got a holiday gift for that child. bring some extra holiday spirit to them. Dear children - you mean These children and their families are based in Bilasuvar. Their the world to us! names, ages, and detailed information about their physical well- being and current medical conditions were provided to us by UAFA – a local non-profit NGO, which runs the Community- based Rehabilitation Center for these kids in Bilasuvar. With this initiative, Deloitte Azerbaijan decided to go beyond the capital city to reach people in the regions, who tend to face greater deprivations in terms of basic support and proper facilities to accommodate their special needs. During the last couple of weeks before the holidays, the office consolidated their efforts and prepared personalized gift packages for each child. Deloitte staff and volunteers have also made contributions toward purchasing wheelchairs for five children with cerebral palsy, who are currently undergoing special therapy and rehabilitation at UAFA’s Rehabilitation Center. The New Year Wish Trees were created across Deloitte CIS in order to make the holidays a happier and more joyful time for

59 AmCham Azerbaijan

ASPI Winery releases a special wine made using unique Italian technology In October 2013, ASPI Winery released two new wines – Cabernet Sauvignon dry and Moscato dessert. The new Moscato wine is the second dessert wine in the Savalan range. A sweet white wine with high percent of natural sugar, it will be greatly enjoyed by those who enjoy pairing wines with sweets. According to market research prior to its release, Moscato had high level of potential demand in the market. “The sweet desert wines often called ‘Vini Passiti e da Meditazione’ (the wines of Passion and Meditation) because they are ideal for those who enjoy consuming wines slowly with passion, appreciating every drop of that magnificent beverage,” says Daniel D’Andrea, the technologist of ASPI Winery. The Cabernet Sauvignon dry is a unique wine in the entire Savalan range, because it was created using an Italian technology called ripasso (re-passed). Put simply, the technology of re-passing wine adds fresh grapes over the skins that have already fermented. Cabernet Sauvignon Ripassato is a full-bodied dry red wine that provides the special taste of high-class Italian wines at an affordable price.

PwC Talents Club The second year of PwC Talents internship opportunity with one of the leading reputable Club is in its full swing. The Club is companies in Azerbaijan, where he/she will be able to apply their a free of charge student outreach knowledge in real situations and aspire for future employment. program that brings most talented university students together under PwC's umbrella and equips them with the “business toolkit” knowledge to be applied in the real business situations in private and public sector. The second intake of the program launched in November 2013 welcomed 20 successful candidates carefully selected to pursue the first significant milestone in their career path. During their three months theory program, the students have completed a comprehensive training curriculum covering a wide diversity of business topics from “Essentials of Finance” to “Presentation Skills” held by PwC team. By the end of the course, successful students will receive an award with certificates of completion and PwC will place them for internship in partner companies. In addition to the main program curriculum, PwC Talents Club goes far beyond the learning and practice - as every big family, we have a tradition to get together for a cup of tea to socialize, talk and to know each other. With this in mind, we constantly organize dedicated teambuilding events to increase motivation and team spirit of students. In December 2013, we hosted the "Miraculous Flavors of the World" Tea Party featuring five teams representing traditional desserts of different countries. The France and Italy teams were awarded with the “Best Story on Dessert Award” and “Best Dessert Award”, respectively. PwC Azerbaijan will stay committed to invest in the youth and support them from the very first steps of their professional build-up. What does the Club give the successful students? A successful member of PwC Talents Club will get a guaranteed

60 Issue 19 AmCham Azerbaijan

US Visa facilitation program

Affairs and such renewals will follow those requirements and General Program regulations.

In the last luncheon of 2013 our members were lucky to General Criteria become the eyewitnesses of the Visa Facilitation Program MOU signing ceremony between AmCham Azerbaijan and Each applicant, including accompanying family members, Embassy of the United States in Baku. must meet the general technical and legal requirements for The Embassy offers two services for processing B1/2 Tourism receiving a visa established under U.S. law / Business nonimmigrant visa (NIV) applications of employees and accompanying family members of companies who are The primary applicant must be employed by a company that Full Members (not Associate) in AmCham. is a Full Member (not Associate Member) in the American Chamber of Commerce Azerbaijan. Immediate family The first service is an “AmCham Member Interview Day.” members may participate in either service if they are traveling Four (4) times a year - approximately every quarter (or with the primary applicant to the United States. U.S. law more frequently if both sides agree) - the Consular Section defines immediate family members as the legal spouse and will close for regular NIV interviews and only hold interviews children under 18 years old of the primary applicant. for applicants (and their accompanying family members) employed by AmCham member companies. The principal applicant must be traveling to the United States for business purposes. Accompanying family members do The second service is a “AmCham Member Drop-box Visa not need to be traveling to the United States for business Renewal Service.” AmCham may collect and submit to purposes, but must be traveling with the primary applicant. the Embassy visa application packets of employees (and Multiple purpose trips -- i.e., trips for business and pleasure accompanying family members) of companies holding Full -- qualify for use of the program, as do requests for visas Membership in AmCham who meet the requirements below for expected but as yet unplanned future business trips. An for visa renewal. This service is permitted under the Interview example of this latter type of case is a person who will need Waiver Pilot Program (IWPP) set by the Bureau of Consular to travel multiple times for business in the future as part of

61 AmCham Azerbaijan

New to AmCham Мembers

his/her normal work.) Any questions about who is able to participate should be directed to the Embassy via e-mail at: [email protected] Specific Criteria for “Drop Box Visa Renewal Service”

To participate in the “Drop Box Visa Renewal Service” each applicant must meet the general qualifications listed above as well as all the additional technical requirements listed below.

• The applicant must have been previously issued a B1/2 visa in Baku, Azerbaijan • The visa must not be more that 48 months past the expiration date. • The applicant must have had 10 finger-scan biometrics collected at the U.S. Embassy in Baku, Azerbaijan (or be exempt from the biometric collection requirement.) (Technical) • The applicant must reside in Azerbaijan.

Other Requests Associates AmCham members who request assistance in obtaining a visa, but do not meet the business facilitation program criteria, should visit Embassy's website for more information about the application procedure. The visa portion of the Embassy's website can be accessed at http://azerbaijan.usembassy.gov/visas.html

Anyone needing to travel to the United States urgently may request an expedited visa interview by emailing the Consular Section at [email protected] Unfortunately, drop box services may not be used with an expedited visa request as the embassy will be able to facilitate the urgent visa request quicker than facilitating such request through AmCham.

If you meet the general eligibility criteria and would like to participate in either one of two Visa Facilitation programs please email [email protected] or call our office. All of our services are designed to be of benefit to our members.

62 Issue 19 AmCham Azerbaijan

AmCham Calendar of Events October - December 2013 October November 5 19

9th Annual Black & White Ball CSR Committee Meeting 17 October - ICT Committee Meeting

18 October - Master-class on ''Lines of defense in an November effective organization'' Travel Bar 25 October - Tax & Customs Committee Meeting 22 Tax & Customs Committee Meeting 28 October - Seminar on Data Marketing and Marketing Analytics 25 November – BFI Committee Meeting October BFI Committee Meeting November 29 HR Committee Meeting 28 30 October - CSR Committee Meeting

October AmCham & Aquavita 31 Cocktail 5 December – AmCham Monthly Members' Luncheon

December 12 AmCham Monthly Members' Luncheon Travel Bar

7 November - Travel, Hospitality and Tourism Committee Meeting

14 November - Migration and Nationalization Cooperation Agreements Signing 13 December – AmCham CEO Breakfast

15 November – AmCham CEO Breakfast 16 December – Tax & Customs Committee Meeting

63 AmCham Azerbaijan

(M2M) Discount Program

designed for our Member Companies mention in the agreement if you wish even more valuable. Analyzing to obtain as well as for the Associates to participate in M2M Plus as well. our members businesses and to provide discounts on a wide range daily operations, it was a demand- of products and services from the hotel M2M – INDIVIDUAL DISCOUNTS driven initiative to expand M2M stays to food and beverage outlets. This program allows two people to something bigger and tangible. This AmCham initiative is recognized from each Member company to With this in mind, we developed as a strong promotional vehicle aimed obtain discounts in below mentioned M2M+ Discount Program envisaging to add more value to companies’ companies upon presentation of corporate discount rates not only membership by helping to increase special M2M cards. for two delegates, but for a whole DISCOUNT CONDITIONS the volume of sales and to save company within AmCham Azerbaijan We do believe our members costs. To become a discount provider M2M+ CORPORATE DISCOUNTS network! Please contact AmCham appreciate an opportunity to benefit you need to complete M2M Discount AmCham Azerbaijan has a office, to receive more information from AmCham M2M and M2M Program Agreement, print it out and groundbreaking commercial initiative about corporate discount packages Plus Discount Programs exclusively return the signed copy to us. Please to make membership in the Chamber represented in M2M Plus Program.

TRAVEL, HOSPITALITY AND LEISURE - 15% discount on SPA treatment at Gazelli biznesinfo.az Evi: pilling (all kinds), wrapping (all kinds), EXCELSIOR HOTEL AND SPA BAKU cedar barrel, hydro massage, Aroma ACT AZERBAIJAN - 10% discount on all F&B Outlets cabin. - 10% discount on all services - 15% discount on Aura Wellness Centre Memberships and massages SCALINI MOZAIK - 25% discount for Women on Aura - 10% discount on food and beverages - 10% on all products Wellness Centre Memberships SCALINI LOUNGE SEABAK JUMEIRAH BILGAH BEACH HOTEL - 10% discount on food and beverages - up to 10% on IT Support Services - 10% on F&B in all outlets - FREE migration to CLOUD.AZ Services - 10 % on accommodation SUNSET - 10 % on Talise Spa & Fitness Center, Beach - 10% discount on food and beverages INTERNET AND COMMUNICATIONS and Waterpark (M2M and M2M Plus) DOUBLE COFFEE NETTRENDS JW MARRIOTT - 10% discount on food and beverages - 10% discount on the quoted monthly - 10% discount on all Food & Beverages. subscription tariffs for the online media Discount is applicable maximum for 20 AMAREDDINE monitoring services people per card. The card cannot be - 10% discount on food and beverages applied for meetings & events held in hotel. SAZZ 4G Internet - 10% discount on all Spa Treatments – The WOK INN - Connect to Sazz 4G Internet and limit is 20 guests per card. Discount does - 10% discount on food and beverages receive AX 326 Sazz USB Modem not apply for spa products retail. as a gift in return for user charge (50 - 30% discount on Laundry & Cleaning. ZADIG & VOLTAIRE AZN) Discount is applicable for minimum on 3 - 15% collection discount - M2M Plus users will be presented with days service. special offers on an individual basis. All above discounts do not apply in MAFRAT conjunction with other promotions. - 15% collection discount SEABAK - up to 15% on Internet Services at Kempinski Hotel Badamdar Baku MIRTILLO LandMark and other business centers Kempinski Conference and Meetings - 15% collection discount Book a conference for 100 and more BANKING, FINANCE AND INSURANCE participants and get an upgrade on a coffee SIMONETTA break: from classic to premium - 15% collection discount A GROUP INSURANCE Coffee break classic includes: tea/coffee, - 15% on all types of insurance assortment of cookies. Upgrade to premium E. MARINELLA INDIAN CLINIC includes additional sweets of the chef’s - 15% collection discount - 15% on medical services choice: Azeri sweets or French pastry PULS DRUGSTORES REAL ESTATE GARAGE ISKENDER - 15% on all medications - 20% discount on food and beverages ALTES GROUP Note: This discount will be applicable to all SEABAK - 5% on “Altes Group” apartments items on our menu except “Business Lunch - up to 5% on IT Equipment, Cartridges and Menus” and “Ramadan Menus” Software Licensing Education

GAZELLI PROFESSIONAL SERVICES AZERBAIJAN DIPLOMATIC ACADEMY - 15% discount on cosmetic products - 10% on Executive Education Corporate made by Gazelli Group at Gazelli SPA@ BIZNESINFO.AZ Training Programs (M2M and M2M Wellness centers. - 15% discount on all banner advertising on Plus)

64 Issue 19