Azərbaycanca
CUSTOMS OVERHAUL
Law No. 424-VIIQD of 19 June 2026, effective from 3 September 2026, substantially amends the Customs Code:
- authorized economic operator status now also covers individual entrepreneurs, while the reform introduces authorized consignor and consignee status and allows electronic transport documents containing the required information to serve as customs declarations under simplified transit procedures;
- the licensing requirement for customs brokers is removed; entities may act as indirect representatives, while individuals may act as direct representatives under a power of attorney;
- general and special customs audits are replaced by desk and field audits: desk audits must normally be completed within 60 business days after release, extendable by up to 30 business days for an international information request, and cannot be repeated for the same declaration, while scheduled field audits are limited to once per calendar year for the same person, require at least 15 business days’ written notice and generally last up to 20 business days, extendable to 30;
- the amended Code expressly lists simplified customs operations, including priority and immediate release, release on a summary import declaration, direct delivery to a warehouse used by the trader and, in some cases, waiver of customs-debt security; and
- the deadline for refund claims is extended from one to three years after payment.
Separately, Law No. 441-VIIQD of 10 July 2026, effective from 1 January 2027, amends Law No. 687-IVQ, On Customs Tariff, of 13 June 2013 to exempt eligible Azerbaijani-origin goods produced or sufficiently processed in the Alat Free Economic Zone from customs duty when brought into the mainland, provided at least 50 percent of their volume is exported outside the country. The exemption applies for 15 years from the establishment of the Free Zone entity producing or processing the goods.
REAL ESTATE REGISTRY AND CADASTER
Law No. 461-VIIQD of 14 July 2026 reduces the standard period for subsequent registration of rights in property already recorded in the state register to one business day. The period may be extended by up to five business days where surveying or inventory work is required.
On 2 September 2026, the President approved new rules for maintaining the real estate registry and cadaster. Under the new rules, a rights-holder applying to register a property right need not submit a separate application for cadastral recording; once the right is registered, the rules provide for the cadastral record to be updated automatically in real time.
MERGER CONTROL AND COMPETITION ACTION PLAN
Cabinet of Ministers Resolution No. 258 of 3 August 2026 sets out how the competition authority assesses market concentrations. The Herfindahl–Hirschman Index measures market concentration by squaring each undertaking’s percentage share of the relevant market and adding the results. For horizontal concentrations, a score above 1,500 and an increase of at least 1,000 points is one of the factors indicating a strengthened dominant position, alongside market-share thresholds of 35 and 45 percent and other competition risks; at least three factors must be present. For vertical concentrations, a score above 2,500 is one of the relevant factors, together with issues such as input significance, market coverage and switching constraints; at least two factors must be present.
The National Action Plan On Development of Competition and Prevention of Monopolistic Activities for 2027–2029 was approved by Presidential Order of 11 September 2026. Under the Plan, in 2027–2028, the authorities are to (i) review economic, technical and administrative restrictions, including licensing and permit procedures, and (ii) assess competitive neutrality in state-owned enterprises, excluding state-controlled banks. For 2028–2029, the authorities are to identify specially regulated infrastructure and service sectors, as well as markets with exclusive State participation, that may be suitable for gradual transition to competitive market models.
AML DUTIES IN ACCOUNTING AND TAX ADVISORY SERVICES
On 25 June 2026, the Constitutional Court clarified how Law No. 781-VIQ, On Combating Legalization of Criminally Obtained Property and Financing Terrorism, of 30 December 2022 (the AML/CFT Law) applies to independent providers of accounting and tax advisory services.
The Court held that professional status alone is not sufficient to trigger the relevant AML/CFT obligations. They apply only where the provider carries out or participates in transactions listed in Sub-Section 3.1.2 of the Law, such as (i) the purchase or sale of real estate, (ii) the management of client funds, securities, other property or accounts, and (iii) the formation, operation or management of legal entities, including the purchase or sale of their shares or participations.
A provider may participate in a transaction without carrying it out directly, but its role must be real and functional. The authorities must therefore establish the provider’s actual role in the relevant transaction and cannot infer AML/CFT obligations from professional status alone. The ruling can be accessed at: https://constcourt.gov.az/az/decision/1546
BANKING SECTOR CONSOLIDATION
Shareholders of Bank Respublika and AccessBank approved the principal terms of a transaction under which Bank Respublika will acquire 100 percent of AccessBank’s shares. The parties indicate that the banks will initially continue operating separately, with a subsequent combination to be implemented subject to applicable regulatory requirements. The transaction represents one of the most significant recent consolidation developments in Azerbaijan’s banking sector.
IMPLEMENTING U.S. SANCTIONS
On 8 September 2026, OFAC sanctioned 27 Iranian airlines. On 22 September 2026, the Azerbaijan State Civil Aviation Agency announced a suspension of flights by Iranian airlines to Azerbaijan, expressly linking the measure to the U.S. sanctions package. The measure appears to be a rare publicly announced instance of Azerbaijan taking regulatory action linked to a U.S. sanctions package. Although the restriction formally applies only to Iranian carriers, it appears to have resulted in the suspension of scheduled air services between Azerbaijan and Iran.
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