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DECREES AND ORDERS
Print version
13.07.2010
DECREE OF THE PRESIDENT OF THE REPUBLIC OF AZERBAIJAN
on elimination of interventions preventing the development of entrepreneurship

In recent years decisions are made and other measures are taken for the elimination of bureaucratic barriers and inspections impeding entrepreneurship activities. And special state programs are aimed at the development of entrepreneurship in the Republic of Azerbaijan. Among them, the decree no. 463, dated June 17, 1996 of the President of the Republic of Azerbaijan on prohibition of groundless inspections and on the adjustment of state surveillance over production, service, finance and credit activity, decree no. 69, dated January 7 of the President of the Republic of Azerbaijan on improvement of state surveillance system and elimination of artificial barriers to the development of entrepreneurship, Program of state assistance to the development of small and medium entrepreneurship in the Republic of Azerbaijan approved by decree no. 610, dated June 24, 1997 of the President of the Republic of Azerbaijan are of vital importance. As the result of these measures and realized economic reforms, at present Gross Domestic Product is increased for 71 percent, 50 percents of which fall on private sector in industry and 99 percents on private companies in the fields of agriculture and trade.
At the same time it should be mentioned that, despite of the works carried out for the development of entrepreneurship, a range of problems is not completely solved yet. Today the work of a number of central, city and district executive power authorities realizing the state regulation of entrepreneurship can not be accepted as sufficient. So that some central and local executive power authorities as well as the bodies of tax, customs, law enforcement and sanitary-epidemiological services intervene irrelevantly to the activities of entrepreneurs, impede their work by different inspections. Cases of biased decisions and procrastination in the solution of economic disputes by courts are encountered. All these cause justified dissatisfaction of the persons dealing with entrepreneurship activity, and prevent their entrepreneurship initiatives and inner potential from being realized and used profoundly.
In order to accelerate development of entrepreneurship in the country and to eliminate groundless interventions, I hereby resolve:

1. The Office of Struggle against Criminality in Economy of the Ministry of Internal Affairs of the Republic of Azerbaijan to be abolished.
Intervention of law enforcement bodies in entrepreneurship activity to be prohibited (with the exclusion of cases bases on court decision).
2. Ministry of Taxes of the Republic of Azerbaijan shall:
- eliminate the shortcomings in tax payment and the cases of illegal prepayment of taxes;
- not allow tax inspections to last longer than the period of time indicated in legislation and implementation of inspections not covered by its competence;
- decrease the number of mobile tax inspections carried out by tax bodies and eliminate repeated groundless inspections;
- strictly control the observance by officials of tax bodies to their duties established by legislation and provide the elimination of procrastination in the field of service to tax payers;
- to take relevant measures for providing the in-time and unbiased consideration of complaints against actions and inactions of tax body officials;
- preclude the cases of illegal reduction of activities, as well as bank transactions of economic operators, by tax bodies;
- provide the implementation of tax control in due order established by legislation;
regularly inform the President of the Republic of Azerbaijan about the implementation of measures established by point 2 of this Decree.
3. State Customs Committee of the Republic of Azerbaijan shall provide the termination of illegal intervention by customs bodies in entrepreneurship activity, improve their work, strengthen the control over contraband and inform the President of the Republic of Azerbaijan about the carried out works.
4. Ministry of Telecommunications of the Republic of Azerbaijan, Ministry of Health of the Republic of Azerbaijan and other related central executive power authorities to be commissioned to eliminate the illegal inspections and creation of barriers to entrepreneurs by these bodies and their organizations, in future to take the necessary measures for precluding the cases of illegal intervention in the activities of entrepreneurs.
5. Heads of city and district executive power authorities to be commissioned to abolish different subsidiary organizations (department, office, centre, bureau etc.) realizing control and inspection activities within ten days and inform the President of the Republic of Azerbaijan to this end.
6. To be defined that, inspection of entrepreneurship subjects by state bodies (with the exception of tax bodies) can be realized only in cases and order established by legislation and with the participation of the representative of the Ministry of Economic Development of the Republic of Azerbaijan.
7. Ministry of Internal Affairs of the Republic of Azerbaijan shall preclude the irrelevant intervention by State Traffic Police in the work of vehicles, improve its activity and reduce its staff for 15 percents, present suggestion to the President of the Republic of Azerbaijan for strengthening the social protection of its staff and provision of roads with relevant technological tools.
8. Courts of the Republic of Azerbaijan to be recommended to:
- provide supremacy of law upon adoption of decisions related to the solution of disputes with regard to economic and entrepreneurship activity and preclude the cases of procrastination in consideration of disputes;
-upon adoption of decisions of judicial enforcement, about the fulfillment of requirements set to state bodies for the implementation of obligations before legal entities and natural persons on behalf of state property, preclude the groundless divestiture of state property by artificial bankrupting. State Committee on State Property Management of the Republic of Azerbaijan shall provide representation of state interests in court proceedings related to state enterprises.
9. In connection with the protection of entrepreneur rights, the Supreme Court of the Republic of Azerbaijan to be suggested to investigate judge decisions which are unfair and in most cases distorting efficient laws and provide their consideration in Disciplinary Board of the Supreme Court of the Republic of Azerbaijan and within six months inform the President of the Republic of Azerbaijan accordingly about the judges to whom disciplinary responsibility was applied.
10. Cabinet of Minister of the Republic of Azerbaijan shall:
- investigate the efficiency of the system regulating the issuance of different types of certificates, special permissions and other similar documents by central and local executive power authorities to entrepreneurs and inform the President of the Republic of Azerbaijan about the result.
- reduce for 40 percents the staff of its structural units which are realizing control and inspection functions and which are not in conformity with modern requirements, to take measures necessary for Training Centre of the Ministry to start its activity, and inform the President of the Republic of Azerbaijan about all these issues;
- provide the establishment of computer network in compliance with modern requirements and the improvement of material and technical supply of tax bodies and within one month to submit its suggestions to the President of the Republic of Azerbaijan for the salary growth of tax body employees ;
- with the purpose of precluding groundless tax inspections, develop relevant draft legislative acts regulating operational control activity realized by state tax bodies and approve with the agreement of the President of the Republic of Azerbaijan;
- submit the draft regulatory act establishing simplified registration system for small entrepreneurs to the President of the Republic of Azerbaijan within one week;
- within fifteen days submit suggestions to the President of the Republic of Azerbaijan in relation to the system for taking resources from bank accounts of entrepreneurs in return for tax debts;
- take necessary measures for transition to the practice of partnership contracts between entrepreneurship subjects and some state bodies performing inspection and control functions and inform the President of the Republic of Azerbaijan to this end;
- within one month take necessary measures for increasing the efficiency in the usage of check book for registering inspections of entrepreneurship subjects;
- within the limits of its power, solve other issues arising from this Decree.

11. Ministry of Economic Development of the Republic of Azerbaijan shall:
- solve the issue of the provision of all business entities dealing with entrepreneurship activity with check book, analyze the records made in these books with regard to inspections and inform the President of the Republic of Azerbaijan about this once every year;
- establish system of operational communication with entrepreneurs, systemize and send information about persons illegally intervening or impeding their activity to relevant bodies and regularly inform the President of the Republic of Azerbaijan about result.
12. Ministry of Justice of the Republic of Azerbaijan shall take relevant measures against social organizations enabling the cases of illegal intervention in entrepreneur activity.
13. Clause 4 in following edition to be added to the law of the Republic of Azerbaijan on coming into force, approval of Criminal Procedural Code and issues of related legal regulation as well as to the approved by this law decree no.387, dated August 25, 2000 of the President of the Republic of Azerbaijan on the application of Criminal Procedural Code:
"4. in case of detection of criminality signs indicated in Article 192 (illegal entrepreneurship), 193 (false entrepreneurship), 213 (avoiding tax payment), if criminal case is started by the Ministry of Taxes of the Republic of Azerbaijan, during initial investigation of these crimes Article 178 (Roguery), 179 (appropriation or waste), 184 (Deception or damaging property by abusing trust), 195 (illegal credit obtainment or failing to use it due to assignment), 196 (deliberate avoidance from paying credit debts), 197 (illegal use of trademarks), 198 (deliberate false advertisement), 199 (monopolist activity and limitation of competition), 200 (deceiving consumers or producing and selling law-quality products), 201 (forcing to conclude an agreement or to refuse to do so), 202 (obtaining and distributing commercial or bank secrets), 203 (breaching the rules for issuance (emission) of securities), 204 (preparing and selling false money or securities), 205 (preparing and selling false credit or account cards or other payment documents), 208 (failing to return foreign currency resources from abroad), 210 (illegal actions during bankruptcy), 211 (intended bankruptcy), 212 (false bankruptcy), 308 (abusing official powers), 309 (exceeding authorities), 311 (giving bribes), 312 (accepting bribe), 313 (forgery by an official), 314 (negligence), 320 (preparation, sale, use and falsification of official documents, governmental bestowals, seals, stamps, form sheets) and 326 (stealing and destroying official documents, stamps, and seals) of the Criminal Code of the Republic of Azerbaijan initial investigation of given issues is carried out by the Ministry of Taxes of the Republic of Azerbaijan.
14. This decree comes into force from the day of its publication.

Haydar Aliyev ,
President of the Republic of Azerbaijan
Baku city, September 28, 2002
No. 790

REFERENCES

Decree no. 426, dated July 6, 2006 of the President of the Republic of Azerbaijan (Collection of Legislation of the Republic of Azerbaijan, 2006, no.7, Article 590)

LIST OF ADDITIONS AND MODIFICATIONS TO THE DECREE

 

With decree no. 426, dated July 6, 2006 of the President of the Republic of Azerbaijan (Collection of Legislation of the Republic of Azerbaijan, 2006, no.7, Article 590) the words "Ministry of Economic Development" in paragraph 3 of clause 1 are replaced with the words "State Committee on State Property Management".

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