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US CUSTOMS DUTIES AND IMPORTS TO AZERBAIJAN

The US government, as part of a new policy of “reciprocal” tariffs, has imposed a ten percent import duty on goods from a number of countries, including the Republic of Azerbaijan. This duty went into effect in the first week of April 2025 as part of a broader tariff program announced by President Trump. The US described the ten percent rate as a minimum or base duty applied to countries, such as Azerbaijan, that do not impose high duties on US goods.


It is noted that the ten percent duty on Azerbaijani goods was chosen in such a way as to reflect the amount of duties that the Republic applies to American products. This raised the question of whether Azerbaijan has imposed a similar ten percent duty on imports from the US.


As of April 2025, Azerbaijan has not imposed new or special ten percent duties specifically targeting imports from the US. Goods of American origin are still subject to standard import duties, which Azerbaijan applies to all trading partners without preferences. Although Azerbaijan is not a WTO member, it adheres to a unified customs tariff (with some bilateral exceptions) rather than rates based on the country of origin. In 2018, Azerbaijan reformed its customs tariff system, simplifying it to three basic rates - zero, five and fifteen percent, depending on the category of goods.


The decision of the Cabinet of Ministers sets the import duties of the Republic; the main regulatory acts are Resolution of the Cabinet of Ministers No. 91 of April 22, 1998 "On the rates of customs duties on export-import operations" and Resolution No. 500 of November 17, 2017 "On the foreign economic nomenclature of goods and the rates of import and export customs duties". These regulations (adopted on the basis of the Customs Code and the Law on Customs Tariffs) established a detailed tariff schedule by product categories.


It is noteworthy that the ten percent rate is not provided as a single tariff rate in the schedule of the Republic; however, it may roughly correspond to the average level of duties applied to American goods. Many goods from the United States exported to Azerbaijan (for example, heavy machinery, industrial equipment) are subject to low or zero duties, while others (for example, certain consumer goods or food products) are subject to a fifteen percent rate.


There is no separate act that would establish a special rate for the United States or would specify the United States by name. Goods from the United States are subject to duties at the same rates as goods from other countries without trade preferences. For example, a machine or equipment from the United States may be exempt from duty if it falls into a category of goods exempted for the purpose of encouraging investment.


The current tariff system of the Republic has been in effect since January 2018 and will remain unchanged in 2025. While the ten percent US tariff went into effect in April 2025, Azerbaijan has not yet approved any retaliatory measures. Any change in the Republic’s import tariffs would require an amendment to Resolution No. 500.


All categories of goods imported from the United States are currently subject to the Republic’s standard tariff rates, as outlined above. There is no narrow list of US goods that are subject to the new tariff. In practice, most US exports to Azerbaijan consist of industrial equipment, machinery, vehicles, and agricultural products. For example, many capital goods and equipment for the oil and gas sector are duty-free or subject to low rates to encourage development, while imported food or consumer goods (including US ones) are subject to a higher rate of fifteen percent to protect local producers.


Azerbaijan has free and preferential trade agreements with selected partners. For example, a preferential trade agreement with Turkey that came into effect in 2021 reduced tariffs on certain bilateral goods. Because the United States is not a party to such agreements with Azerbaijan, American goods do not benefit from preferential rates. However, they also do not face additional tariffs — the Republic’s customs policies generally apply equally to all trading partners, and changes are made through broad tariff reforms rather than through measures aimed at specific countries.

Given the Republic's relatively modest trade with the United States, the impact of US tariffs on Azerbaijan's economy is expected to be limited, reducing the incentive to retaliate.

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