Mediation In Foreign Exchange Transactions

On 30 September 2024, the Plenum of the Constitutional Court of the Republic of Azerbaijan considered a request by the Saki District Court seeking to clarify the interpretation of Sub-Section 430.4 of the Code of Administrative Violations of the Republic of Azerbaijan and Sub-Section 4.3.2-1 of the Rules of Transactions of Residents of Republic of Azerbaijan in Foreign Currency and Non-Residents in National and Foreign Currency.

The inquiry from the District Court addresses an advance payment made by an Azerbaijani resident entity, representing an entity in the Russian Federation, to another entity operating in Portugal, with the designated delivery destination in Türkiye. The Court sought clarification on whether the administrative liability, as outlined in Sub-Section 430.4 of the Code, applies to situations where the goods, for which an advance payment is made overseas by a resident entity, are not imported into the country.