AADA appealed to the Cabinet of Ministers

AADA appealed to the Cabinet of Ministers

Today, on April 30, 2020, the Azerbaijan Automobile Dealers Association (AADA) addressed a letter to the Cabinet of Ministers of the Republic of Azerbaijan. The letter reads: “AADA is a public association of official importers and local car manufacturers representing more than 40 leading car brands in our country. Our organization strives for the establishment of a civilized car business in the country, the formation of an environment that serves the interests of consumers, road users and our state. To this end, we study the existing problems, hold discussions with official bodies and public organizations, and make proposals that will be useful for our country.

As the automotive sector, we appreciate the steps taken by our government in connection with the COVID-19 pandemic, as well as the attention paid to citizens and businesses that suffered material damage during the quarantine period. We would like to note that AADA members also provide comprehensive assistance to our government and people during these difficult times. Despite the difficult situation in the sector, car importers are joining the government's initiatives, making direct donations to the Coronavirus Support Fund and taking all possible measures to prevent social tensions and protect employees' jobs and income.

The letter also describes the serious problem faced by car importers in connection with the COVID-19 pandemic. It is known that the automotive sector is a very sensitive area to changes in economic conditions. As a result of the pandemic, the sector is in crisis: sales of new cars and spare parts in the country have fallen sharply, and the number of customers has dropped by more than 90%.

It is known that due to the legality of the car business, importers place orders for cars and spare parts 3-6 months in advance and take obligations to manufacturers. As a result, despite the crisis in the sector, the supply of ordered cars and spare parts continues by manufacturers. AADA members have already imported thousands of cars into the country since the beginning of 2020, and this process will continue in the coming months. As a result of the sharp decline in turnover, customs clearance of goods has become a serious financial burden for importers, and even impossible for some of our companies. According to the current legislation, goods imported into the country can remain under temporary storage for up to 4 months without payment of import duties, excise duties and VAT. Unfortunately, some procedural changes are needed for this mechanism to work smoothly. As a result of the risks posed by the current situation, thousands of importers' cars are stored in neighboring countries under more favorable conditions, transparent and convenient procedures, and various duties and payments are paid to the budgets of those countries.

The letter sent by AADA to the relevant government agencies contains four proposals for placing cars under a special customs procedure for temporary storage. In conclusion, the letter states: "We are confident that the implementation of the proposals will not only serve the interests of car importers, but also create regional business opportunities due to our geographical location, create new jobs and ultimately new savings in the state budget."