TODAY.AZ / Business

Customs exemptions to lead to development of high tech parks in Azerbaijan

31 July 2015 [12:15] - TODAY.AZ

/By AzerNews/

By Aynur Karimova

The seven-year exemption for the residents of Mingachevir High Tech Park from customs duties for importing high-tech product components will give an impetus to the establishment of new and the development of existing high tech parks in Azerbaijan, Vugar Bayramov believes.

The Chairman of the Center for Economic and Social Development told Azernews that customs privileges would pave the way for a decrease in expenditures.

"It, in turn, creates a financial incentive for the development of the high tech parks and leads to an increase of state support in this regard. It also leads to an increase of interest in innovative and information technologies," he said.

The expert also said that the development of the information technologies sector is considered as one of the top priorities of Azerbaijan's non-oil sector.

"The development of this sector is also emphasized in the ‘Azerbaijan 2020: A Look into the Future’ strategy. I think that customs privileges will allow for increasing the volume of investments in information technologies and gaining more profits," Bayramov noted.

The application of customs privileges will be carried out in accordance with amendments to the governmental decree "On rates of customs duties on export-import operations in Azerbaijan."

According to the amendments, customs privileges will be applied to export-oriented products.

The list includes storage arrays (HDDs) and other devices for computers, and various parts and accessories (electronic modules) and monitors.

Customs privileges will also be imposed on electronic integrated circuits (integrated and non-integrated processors and controllers with the memory devices, converters, logic circuits, amplifiers, synchronizers and etc.).

Azerbaijan, which has actively sought to limit its reliance on its energy sector by diversifying its industries, is looking to unveil a series of benefits to attract residents to its soon-to-be constructed High Tech Park.

The Mingachevir High Tech Park was set up in view of securing sustainable development and economic competitiveness. The expansion of innovative and high-tech industries based on modern scientific and technological achievements, as well as research and development at a modern complex for new technologies, will enable Azerbaijan to make its mark in the region and promote growth.

The facility will stretch 1.3 hectares and fall under the administration of the Communication and High Technologies Ministry.

The high-tech park has been equipped and organized in such a way that it will promote research and development work, ultimately leading to the commercialization of new products and high tech applications.

An initial investment of 2 million manats was allocated to the project from the Azerbaijani President's Reserve Fund.

Presently, Mingachevir is well known for its production of KUR computer equipment.

The KUR plant, which was established in 2005, is the only manufacturing company engaged in the assembly-line production of computer equipment and electronics in the South Caucasus region. The plant will be used for the production of high-tech products, starting this year.

Mingachevir High Tech Park will work in collaboration with another facility in Baku. The High Tech Park is currently under construction in an area comprising 50 hectares in the Pirallahi district of the capital.

This facility will also be equipped with all of the necessary infrastructure, logistics, and governing entities, enabling engineers to conduct research in ICT telecommunications, energy efficiency, and the development of new and high technologies.

Moreover, residents and companies operating in the park will be exempt from VAT (18 percent) on all imported infrastructural and technological goods and services.

Along with the development of high tech parks, Azerbaijan has worked to develop its Industrial Park in Sumgayit, Azerbaijan’s primary industrial city.

URL: http://www.today.az/news/business/142558.html

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