Azerbaijan’s foreign trade relations date back to ancient times. In the second half of the second millennium BC, local tribes traded raw materials and products with the countries of Assyria, Palestine, and Egypt, from which they brought ornaments and various cold steel. Tabriz, Ardabil, Urmia, Maragha, Zanjan, Nakhchivan and other areas in the territory of Atropatena have become important trade centers within the country. These cities were able to establish trade relations with other countries not only by land but also by sea. Trade relations with Central Asia, China, India and Asia Minor were established through the famous “Great Silk Road”.
Carpets, ornaments, woolen products, etc. made in the country. exported and instead imported the necessary consumer goods. At that time, various taxes were levied on sales, which in modern times are called customs duties and taxes.
At the beginning of our era, the state of Albania was established, covering the territory of present-day Northern Azerbaijan and Southern Dagestan. According to historical sources, oil, natural gas, iron, copper, etc. are found in this area. It is shown that there were valuable resources such as, which later became commercial entities. In Shirvan (Baku) oil and salt products are taxed, which in modern language is assessed as a mining tax and excise tax.
Customs in Baku was first established in 1809 by the decree of the Senate of the Russian Empire dated January 25, 1807 and was included in the Astrakhan customs district.
After the Gulustan (1813) and Turkmenchay (1828) treaties, Russia’s customs decisions came into force in Azerbaijan. At that time, the customs tariffs adopted in 1811 and the customs regulations adopted in 1819 were in force in Russia.
According to the “Regulations on customs administration in the Transcaucasian country”, Baku customs was transferred to the subordination of the Transcaucasian customs district on July 31, 1831, and from 1832 it was called “Baku warehouse customs”. Although no concrete work was done in this area during the time of the Azerbaijan Democratic Republic (1918-1920), all political steps were taken in terms of statehood. The whole tax policy was headed by the Minister of Finance N. Yusifbeyli.
After the resignation of F. Khoyski’s government in March 1919, N. Yusifbeyli became the Prime Minister (April 14, 1919). Addressing the parliament with a new government program, Nasib Bey stressed the establishment of the first economic relations with neighboring countries, among other areas. However, the April Revolution of 1920 should allow this policy to be completed.
On October 18, 1991, “Azerbaijan gained its independence and the Constitutional Act on Independence was adopted.
On January 30, 1992, the Customs Committee was established by the Decree of the President of the Republic of Azerbaijan No. 561 “On the establishment of the State Customs Committee of the Republic of Azerbaijan”. The committee was established mainly on the basis of the former Customs Administration of the Republic of Azerbaijan.
Benefits of Customs: The country’s industry is protected. The fact that goods produced abroad at lower prices will enter the country at lower prices will have a negative impact on local industry. When local industry cannot sell goods to the domestic market, jobs are lost and workers are laid off. In this case, unemployment is rising in the country. Therefore, when cheap goods or services come from foreign countries to the domestic market, a certain customs duty is levied and the domestic market is protected. A company that sends goods and services from abroad raises the price of goods and services to avoid paying customs duties. The domestic market is protected.
• Customs duties are a source of income for the country.
• Countries aim to control imported goods with the customs duties they impose on goods and services. In addition to lowering customs duties to speed up the entry of goods and services required for the country, they increase customs duties on goods and services they want to make difficult to enter.