Kommersiya hüquqi şəxslərin təsisçiləri (iştirakçıları), nizamnamə kapitalındakı payları və qiymətli kağızların mülkiyyətçiləri barədə məlumatların monitorinq iştirakçılarına və monitorinqdə iştirak edən digər şəxslərə verilməsi   Sahə: Çirkli Pulların Yuyulması və Terrorçuluğun Maliyyələşdirilməsi Əleyhinə Mübarizə Hüquqi akt: Kommersiya hüquqi şəxslərin təsisçiləri (iştirakçıları), nizamnamə kapitalındakı payları və qiymətli kağızların mülkiyyətçiləri barədə məlumatların monitorinq iştirakçılarına və monitorinqdə iştirak edən digər şəxslərə verilməsi Qaydası”nın təsdiqedilməsi barədə 433 nömrəli Qərar Qəbul edən orqan: Azərbaycan Respublikasının Nazirlər Kabineti Qəbul edilmə tarixi: 10 oktyabr 2018-ci il Qüvvəyə minmə tarixi: 13 oktyabr 2018-ci il Qaydaya əsasən, monitorinq iştirakçıları və monitorinqdə iştirak edən digər şəxslər Qaydada müəyyən olunmuş hallarda kommersiya hüquqi şəxslərin təsisçiləri (iştirakçıları), nizamnamə kapitalındakı payları və qiymətli kağızların mülkiyyətçiləri barədə məlumatları (qanunvericiliyə əsasən kommersiya sirri hesab olunan məlumatları) xidmət haqqından azad şəkildə Azərbaycan Respublikası Vergilər Nazirliyinin və Azərbaycan Respublikası Maliyyə Bazarlarına Nəzarət Palatasının informasiya sistemindən elektron imza vasitəsilə sorğu verərək əldə edə bilərlər. Qeyd edək ki, “Cinayət yolu ilə əldə edilmiş pul vəsaitlərinin və ya digər əmlakın leqallaşdırılmasına və terrorçuluğun maliyyələşdirilməsinə qarşı mübarizə haqqında” Azərbaycan Respublikasının  10 fevral 2009-cu il tarixli Qanununa əsasən, monitorinq iştirakçılarına və monitorinqdə iştirak edən digər şəxslərə cinayət yolu ilə əldə edilmiş pul vəsaitlərinin və ya digər əmlakın leqallaşdırılmasının və terrorçuluğunmaliyyələşdirilməsinin qarşısını almaq məqsədi ilə Qanunla nəzərdə tutulmuş tədbirləri həyata keçirən aşağıdakı cədvəldə göstərilən şəxslər aiddir:   Monitorinq iştirakçıları    Monitorinqdə iştirak edən digər şəxslər kredit təşkilatları   qiymətli daşların, qiymətli metalların, o cümlədən qiymətli daşlardan və ya qiymətli metallardan hazırlanmış zərgərlik və digər məişət məmulatlarının alqı-satqısı ilə məşğul olan fiziki və ya hüquqi şəxslər sığortaçı, təkrarsığortaçı və sığorta vasitəçiləri    daşınmaz əmlakın alqı-satqısı üzrə vasitəçilik xidmətləri göstərən fiziki və ya hüquqi şəxslər investisiya şirkətləri   lotereya və idman mərc oyunları təşkilatçıları lizinq xidmətləri göstərən hüquqi şəxslər   vəkillər pul vəsaitlərinin köçürülməsi ilə məşğul olan,  poçt xidməti göstərən müəssisələr və digər təşkilatlar   Notariuslar lombardlar   hüquq xidmətləri, mühasibat və vergi məsləhəti xidmətləri, auditor xidmətləri göstərən şəxslər investisiya fondları və bu fondların idarəçiləri     öz fəaliyyətinin tərkib hissəsi kimi vəsait alan, toplayan, verən və ya vəsait köçürən hər hansı qeyri-hökumət təşkilatı, xarici dövlətlərin qeyri-hökumət təşkilatlarının Azərbaycan Respublikasındakı filial və ya nümayəndəliyi və ya dini təşkilat     valyuta mübadiləsi fəaliyyətinə lisenziya almış şəxslər           Hüquqi şəxslərin cinayət məsuliyyətinə cəlb edilməsi artıq mümkündür   Sahə: Cinayət Hüququ Hüquqi akt: “Azərbaycan Respublikasının Cəzaların İcrası Məcəlləsinə dəyişikliklər edilməsi haqqında” 1271-VQD nömrəli Qanun  Qəbul edən orqan: Azərbaycan Respublikasının Milli Məclisi  Qəbul edilmə tarixi: 12 oktyabr 2018-ci il Qüvvəyə minmə tarixi: 19 oktyabr 2018-ci il Dəyişikliyə əsasən, Azərbaycan Respublikasının Cəzaların İcrası Məcəlləsi hüquqi şəxslərə tətbiq edilən aşağıdakı cinayət-hüquqi xarakterli tədbirlərin tətbiqi qaydalarını və şərtlərini müəyyən edir: Cərimə Xüsusi müsadirə Hüquqi şəxsi müəyyən fəaliyyətlə məşğul olma hüququndan məhrum etmə Hüquqi şəxsi ləğv etmə Qeyd edək ki, 7 mart 2012-ci il tarixli Qanunla Azərbaycan Respublikasının Cinayət Məcəlləsinə hüquqi şəxslər barəsində tətbiq edilən cinayət-hüquqi xarakterli tədbirlər adlı fəsil daxil edilmiş, lakin həmin müddəaların Azərbaycan Respublikasının Cinayət-Prosessual Məcəlləsində və Azərbaycan Respublikası Cəzaların İcrası Məcəlləsində ediləcək dəyişikliklərlə eyni gündə qüvvəyə minəcəyi müəyyən edilmişdi. Beləliklə, Cəzaların İcrası Məcəlləsinə edilmiş dəyişikliklərin hüquqi qüvvəyə minməsi ilə artıq hüquqi şəxslər də cinayət məsuliyyəti daşıyaraq cinayətin subyekti olurlar.       “ASAN xidmət” mərkəzləri tərəfindən həyata keçirilən xidmətlər siyahısı genişləndirilir    Sahə: İnzibati hüquq Hüquqi akt: “Azərbaycan Respublikasının Prezidenti yanında Vətəndaşlara Xidmət və Sosial İnnovasiyalar üzrə Dövlət Agentliyinin fəaliyyətinin təmin edilməsi haqqında” Azərbaycan Respublikası Prezidentinin 2012-ci il 5 sentyabr tarixli 706 nömrəli Fərmanında dəyişiklik edilməsi barədə”  313 nömrəli Fərman Qəbul edən orqan: Azərbaycan Respublikasının Prezidenti Qəbul edilmə tarixi: 26 oktyabr 2018-ci il Qüvvəyə minmə tarixi: 27 oktyabr 2018-ci il Dəyişikliklərə əsasən, “ASAN xidmət” mərkəzlərində dövlət orqanları tərəfindən həyata keçirilən xidmətlər siyahısına aşağıdakı yeni xidmətlər əlavə edilir: torpaq üzərində mülkiyyət hüquqlarının təkrar dövlət qeydiyyatına alınması barədə çıxarışın, həmin torpaq sahəsinin planının və ölçüsünün verilməsi; əcnəbilərin və vətəndaşlığı olmayan şəxslərin Azərbaycan Respublikasında olduğu yer üzrə qeydiyyata alınması; vətəndaşın hərbi qeydiyyatda olmasına dair arayışın verilməsi; vətəndaşa müddətli həqiqi hərbi xidmətə çağırışdan möhlət verildiyinə dair arayışın verilməsi; həqiqi hərbi xidmət keçmiş şəxsə hərbi xidmətkeçmə haqqında arayışın verilməsi; vətəndaşın müddətli həqiqi hərbi xidmətə göndərildiyinə dair arayışın verilməsi; qida məhsulları sahəsində fəaliyyət göstərən subyektlərin qida təhlükəsizliyi qeydiyyatına alınması və müvafiq dövlət reyestrindən çıxarışın (onun dublikatının) verilməsi; qeydiyyata alınmış subyektlərin reyestr məlumatlarında dəyişiklik edilməsi; qida təhlükəsizliyi sertifikatının verilməsi; ixrac edilən heyvanlara və heyvan mənşəli məhsullara beynəlxalq baytarlıq sertifikatının verilməsi; idxal və istehsal edilən baytarlıq preparatlarının dövlət qeydiyyatına (təkrar qeydiyyata) alınması və bu barədə qeydiyyat şəhadətnaməsinin (təkrar qeydiyyat şəhadətnaməsinin) verilməsi; bitki və bitkiçilik məhsullarının ixracına (təkrar ixracına) fitosanitar (təkrar ixrac fitosanitar) sertifikatının verilməsi; daxili karantin sertifikatının verilməsi; pestisidlərin, bioloji preparatların və aqrokimyəvi maddələrin qeydiyyata alınması və qeydiyyat (təkrar qeydiyyat) şəhadətnaməsinin verilməsi; Avropa İttifaqının yeyinti məhsullarının idxalı ilə bağlı tələblərinin icrasını həyata keçirmək məqsədilə həmin ölkələrə yeyinti məhsullarının ixracı ilə məşğul olan istehsal və emal müəssisələrinə müvafiq sənədlərin (məlumatların) verilməsi.       2018–2020-ci illərdə Azərbaycan Respublikasında Rəqəmsal Ödənişlərin Genişləndirilməsi üzrə Dövlət Proqramı (“Proqram”)   Sahə: Maliyyə və İnzibati Hüquq Hüquqi akt: “2018–2020-ci illərdə Azərbaycan Respublikasında Rəqəmsal Ödənişlərin Genişləndirilməsi üzrə Dövlət Proqramı”nın təsdiq edilməsi haqqında” 507 nömrəli Sərəncam Qəbul edən orqan: Azərbaycan Respublikasının Prezidenti Qəbul edilmə tarixi: 26 sentyabr 2018-ci il Qüvvəyə minmə tarixi: 27 sentyabr 2018-ci il Proqramın strateji məqsədi vətəndaş, biznes subyektləri və dövlət strukturları arasında nağdsız ödəniş mühitinin xeyli genişlənməsi, nağd dövriyyənin həcminin minimuma endirilməsi və nəticədə bank sektorunun maliyyə resursları bazasının gücləndirilməsidir. Bu məqsədlə Proqrama əsasən həyata keçirilməsi nəzərdə tutulan tədbirlərdən bəzilərini nəzərinizə çatdırmaq istərdik: Azərbaycanda ədalətli bazar strukturunun formalaşmasını sürətləndirmək üçün Rəqabət Məcəlləsinin qəbulunun sürətləndirilməsi Dövlət satınalmalarında kiçik və orta sahibkarların üstün şərtlərlə iştirakının təmin edilməsi Sadələşdirilmiş vergi sisteminin tədricən ƏDV sistemi ilə əvəzləşdirilməsi və ƏDV dərəcəsinin diferensiallaşdırılması Qeyri-formal məşğulluğun yüksək olduğu sektorlarda əmək müqaviləsi qeydiyyata alınmamış işçi sayının azaldılması üçün “minimum əmək” standartlarının yaradılmasının nəzərdən keçirilməsi “Vahid Mühasibatlıq Sistemi”nin tətbiq edilməsi Rəqəmsal bankçılığın inkişafı məqsədilə bank hesabının açılması və idarəedilməsi zamanı müasir məsafədən identifikasiya vasitələrinin istifadə edilməsinin, fiziki olaraq banka gəlmədən bank məhsulu və xidmətlərindən istifadənin, bank hesabları vasitəsilə əməliyyatların aparılması imkanının təmin olunması, habelə, “e-pul” kimi məhsulların ölkədə tətbiqinin hüquqi bazasının yaradılması Kiçik təsərrüfat subyektlərinə nağdsız ödəniş qəbul etmək imkanı verən ucuz ödəniş üsullarının (QR-kod)  təqdim edilməsi “mobul pul kisələri” kimi müasir ödəniş mexanizmlərinin yaradılması və istifadə edilməsi

Legal act: Law of the Republic of Azerbaijan No. 1617-VQ on Agricultural Insurance (the “Law”) Authority: Milli Majlis Enactment date: June 27, 2019 Effective date:  January 1, 2020 The new Law regulates the relations connected with risk insurance in the agricultural sector through the mechanism of co-insurance. According to the Law, the subject matters of the insurance include: agricultural plants and plant products (including perennial plantings and their products); farm animals and animals raised for agricultural purposes; aquaculture products. Under the abovementioned subject matters of insurance, manufacturers of agricultural products are insured against one or more of the following risks in accordance with insurance rules: Acts of God; Fires; Plant diseases and pests; Contagious diseases and poisonings; Wild animals attack and spread and attack of especially dangerous pests; Acts of third parties. Agricultural insurance premium consists of the parts paid by the insured person and state budget. According to the Law, the insured person appeals to the Governing Body regarding the occurrence of the insurance event and the Governing Body provides the investigation and assessment of the damage by an independent expert defined by the Law. As to the Governing Body, it operates in the form of  open joint stock company established with equal share ratio by legal entities licensed for non-life insurance activities in the territory of the Republic of Azerbaijan.  

Legal act: Law of the Republic of Azerbaijan No. 1632-VQD on Amendments to the Law of the Republic of Azerbaijan on Courts and Judges (the “Law”) Authority: Milli Majlis Enactment date: July 9, 2019 Effective date:  January 1, 2020 According to the Law, new сhapter VIII-I titled “Commercial courts” was added to the Law of the Republic of Azerbaijan On Courts and Judges. Thus, the Law provides that commercial courts to be established: handle commercial disputes, which are legally mandated as first instance courts; analyze court statistics, learns and summarizes the organization of judicial activity, court practice, exercises other powers assigned to it by the laws of the Republic of Azerbaijan; established per administrative units of the Republic of Azerbaijan; consist of a chairman and judges; If there are 12 or more judges, the position of vice president is required. Further, the word "Economic" has been removed from the title of the chapter “Administrative and Economic Courts” and relevant provisions of it. Thus, all existing administrative-economic courts in Azerbaijan thereafter will be called “administrative” courts. Legal act: Law of the Republic of Azerbaijan No. 1623-VQD on Amendments to the Migration Code of the Republic of Azerbaijan (the “Law”) Authority: Milli Majlis Enactment date: June 27, 2019 Effective date:  July 24, 2019 Amendments in accordance with the Law are as follows: In accordance with the Migration Code, foreigners and stateless persons temporarily staying in the Azerbaijan Republic for more than 15 days must register at the place of stay within 15 days after arrival. When foreigners and stateless persons change their place of residence, they must undergo re-registration. According to the amendments, such a re-registration must be made within 5 business days from the moment the person arrives at a new place.; The extension of the period of stay for the father, mother, husband (wife), son, brother, sister of a foreigner or stateless person in the Azerbaijan Republic is considered the basis for extending the temporary stay of the same foreigner or stateless person in the territory of the Azerbaijan Republic; Due to the existence of close family ties with a citizen of the Republic of Azerbaijan or if the foreigner is a member of a family of foreigners or stateless persons temporarily residing in the territory of the Azerbaijan Republic, upon application for a temporary residence permit in the territory of the Republic of Azerbaijan, a citizen of the Azerbaijan Republic located in close relationship, or a family member temporarily residing in the territory of the Republic of Azerbaijan must submit a notarized form of consent. The following new cases are considered grounds for obtaining a temporary residence permit in the Republic of Azerbaijan: When a person is considered a victim of trafficking. Assistance to criminal prosecution bodies; When recruited by the relevant executive authorities (the President of the Republic of Azerbaijan and the Cabinet of Ministers of the Republic of Azerbaijan); In the event of a call to the service or work of a serviceman or specialist in other armed groups created in accordance with the Armed Forces of the Azerbaijan Republic and the legislation of the Republic of Azerbaijan; In case of accreditation of a mass media employee in the Republic of Azerbaijan; As a sailor; In the case of the invitation of the professor and teaching staff  and lecturers to give a course of lectures in higher educational institutions; Artist, coach or athlete invited to work in state sports clubs in the relevant executive authority; If a person is involved in labor activities in cases determined by the relevant executive authority (President of the Azerbaijan Republic); Persons who have invested at least 500,000 manat in the economy of the Republic of Azerbaijan to obtain a permanent residence permit will not be required to provide a document confirming the availability of their own funds to meet their minimum needs. Legal act: Law of the Republic of Azerbaijan No. 1624-VQD on Amendments to the Law of the Republic of Azerbaijan on State Duty (the “Law”) Authority: Milli Majlis Enactment date: June 27, 2019 Effective date:  July 1, 2019 According to the Law, the state duties for the extension of temporary residence in the Azerbaijan Republic, for the issuance of a temporary and permanent residence permit, as well as for work permits, will henceforth look as follows:   Amount of state duty required for issuing and renewing a temporary residence permit for foreigners and stateless persons in the territory of the Republic of Azerbaijan Validity period   Issue and extension of term within 15 business days Issue and extension of term within 20 business days Up to 3 months 40 AZN 30 AZN Up to 6 months 80 AZN 60 AZN Up to 1 year 160 AZN 120 AZN Up to 1 year and 6 months 240 AZN 180 AZN Up to 2 years 320 AZN 240 AZN Up to 2 years and 6 months   400 AZN 300 AZN Up to 3 years 480 AZN 360 AZN   Amount of the state duty required for issuance and extension of the term of temporary residence permit in the territory of the Republic of Azerbaijan to foreigners and stateless persons who are under 18 Validity period Issuance and extension of term within 15 business days Issuance and extension of term within 20 business days Up to 3 months 25 AZN 15 AZN Up to 6 months 50 AZN 30 AZN Up to 1 year 100 AZN 60 AZN Up to 1 year and 6 months 150 AZN 90 AZN Up to 2 years 200 AZN 120 AZN Up to 2 years and 6 months   250 AZN 150 AZN Up to 3 years 300 AZN 180 AZN   The amount of the state duty required for the issuance and extension of a temporary residence permit in the territory of the Republic of Azerbaijan to foreigners and stateless persons studying in higher and secondary special educational institutions Validity period Issuance and extension of term within 15 business days Issuance and extension of term within 20 business days 1 year 60 AZN 40 AZN 2 years (If the duration of temporary residence permit is extended) 120 AZN 80 AZN   The amounts of the state duty required for issuance and extension of the term of temporary residence permit in the territory of the Republic of Azerbaijan Term for consideration of application For foreigners and stateless persons For foreigners and stateless persons who are under 18 35 days 450 AZN 300 AZN 40 days 400 AZN 250 AZN 50 days 350 AZN 200 AZN 60 days 300 AZN 150 AZN   The amounts of the state duty required to issuance of the decision on the extension of  temporary staying period in the country to foreigners and stateless persons Validity period Issuance within 1 business day Issuance within 3 business days Up to 30 days 50 AZN 30 AZN Up to 60 days 100 AZN 60 AZN   The amount of the state duty required to issuance of the decision on the extension of  temporary staying period in the country to foreigners and stateless persons who are under 18 Validity period Issuance within 1 business day Issuance within 3 business days Up to 30 days 30 AZN 15 AZN Up to 60 days 60 AZN 30 AZN   The amounts of the state duty required for issuance and extension of the term of the work permit to foreigners and stateless persons in order to carry out paid labor activity in the territory of the Republic of Azerbaijan Validity period Issuance and extension of term within 10 business days Issuance and extension of term within 15 business days Issuance and extension of term within 20 business days Up to 3 months 700 AZN 500 AZN 350 AZN Up to 6 months 900 AZN 700 AZN 600 AZN Up to 1 year 1400 AZN 1200 AZN 1000 AZN Legal act: Law of the Republic of Azerbaijan No. 1633-VQD on Amendments to the Civil Procedure Code of the Republic of Azerbaijan (“Law”) Authority: Milli Majlis Enactment date: July 9, 2019 Effective date:  January 1, 2020 According to the Law, complaints against decisions of first instance courts on disputes over jurisdiction will now be: directly addressed to the Supreme Court; considered in a mixed panel of judges of civil, commercial and administrative councils; reviewed within 10 days without judicial review and summoning of the parties to a hearing. Legal act: Law of the Republic of Azerbaijan No. 1587-VQ on Standardization (the “Law”) Authority: Milli Majlis Enactment date:  May 17, 2019 Effective date:  October 14, 2019 According to the Law, standardization is the process of development, adoption and implementation of regulatory documents aimed at improving the safety and quality of standardization facilities intended for mass and reuse. This Law applies to all state bodies, individuals and legal entities operating in the field of standardization, with the exception of education, national accounting, state security and protection standards. One of the main goals of standardization is the voluntary nature of standards. According to this Law, normative documents in the field of standardization are: state standards, including initial state standards; international and regional, interstate and international standards; technical conditions. Note: technical conditions – is a voluntary regulatory document that defines the technical requirements for goods (works, services), and related processes and methods of production. Legal act: Decree No. 768 on Coordination of Programs (Projects) Supported by Foreign Countries and İnternational Organizations in Support of Entrepreneurship (the “Decree”) Authority: President of the Republic of Azerbaijan Enactment date: July 2, 2019 Effective date:  July 3, 2019 The Decree provides that programs sponsored by foreign countries and international organizations in the form of loans, technical assistance or grants to support micro, small and medium-sized businesses in the Republic of Azerbaijan will be implemented with the participation of the Agency for the Development of Small and Medium-Sized Businesses of the Republic of Azerbaijan. Legal act: Decree No. 775 on Establishment of the National Observatory on Labor Market and Social Protection under the Ministry of Labor and Social Protection of the Republic of Azerbaijan (“Decree”) Authority: President of the Republic of Azerbaijan Enactment date: July 4, 2019 Effective date:  July 5, 2019 According to the Decree, the Cabinet of Ministers of the Republic of Azerbaijan shall be assigned: Establishment of the National Observatory on the Labor Market and Social Protection (Observatory) with the status of a public legal entity; Approval of the Charter of the Observatory and the Charter Fund in agreement with the President of the Republic of Azerbaijan; Approval of the structure of the observatory and determination of the number of employees.  

The Law which is effective since 5 April 2019 describes mediation as following: a proceeding established to amicably solve the dispute between parties through a mediator (mediators); the parties can be legal entities and individuals (including individuals doing business without forming a legal entity) as well as administrative authorities assenting to the application of mediation proceeding; is voluntary in general. However, the parties to economic, family and labor-related disputes shall participate in the preliminary mediation sessionbefore applying to a court; applicable to civil, economic disputes (including disputes with a foreign element), family, labor and administrative disputes; implemented based on a contract on the application of mediation proceeding or by the Law through participation in the preliminary mediation session; start of the proceeding freezes the statute of limitation prescribed by law; the parties independently use their legal and processual rights as well as increase or decrease their claim, can dismiss the mediation at any stage of the proceeding provided that they participated in the initial mediation session; unless the parties opted otherwise it is a closed proceeding; shall not continue for a period longer than 30 days (can be extended for further 30 days depending on the complexity of a dispute). The specific period is established by the contract “on the application of mediation proceeding” taking into account the overall (statutory) period; the agreement resulting from the proceeding is a “settlement agreement”; is a paid service (a mediator or a mediator organization can on its initiative provide free mediation proceeding). The confidentiality of information obtained during mediation shall be protected by the participants of mediation. The Law also stipulates the qualifications for the individuals and organizations who wish to become a mediator, the terms of the implementation of a settlement agreement and the scope of mediation costs. The provisions of the Law on the mandatory participation in the preliminary session shall become effective starting from 1 July 2020.  Read more> Mediator Individuals shall have the following qualifications to become a mediator: have a graduate degree; be older than 25; have at least three years of experience; graduate the preliminary course and obtain the certificate by the mediation authority. A mediator can engage in any activity not prohibited by law. A mediator cannot provide the parties to the mediation proceeding in which he acts as a mediator with legal and other services or represent them in a court or arbitration proceeding or act as an arbitrator in the proceeding with their participation. Mediation organization Another definition defined by the Law is a “mediation organization.” “Mediation organization” is a legal entity marketing mediation services, establishing the fees and costs for the services of mediators with whom it has an employment or civil contract, is facilitating negotiations during mediation, appointing mediators if allowed by the Law and the agreement of the parties and performs other actions required for effective performance of the mediators.  The legal entities obtain the right to act as a mediation organization upon acceptance as a member of the Mediation Council. Legal entities shall have the following qualification to be selected as a member of the Council: have employment agreements with at least two mediators of whom one shall have a graduate legal degree; have rules on the evaluation of services by a mediator; have an office with at least two rooms. The rule of the mediation proceeding The following shall be noted on the rule of the proceeding: the mediation proceeding is implemented based on the Law, the rule on implementation of the mediation, the internal rules of the mediation organization (if available) prepared based on the mediation rules, and the professional code of conduct of mediators; the mediator can meet the parties jointly or separately, cooperate with them, provide oral and written recommendations; the parties can attend the mediation proceeding directly or through their representatives; the parties can use the services of attorneys, translators, experts, and professionals in the relevant field. Settlement agreement: is mandatory once executed by parties; if the settlement agreement (“the agreement”) does not specify another term it shall be implemented voluntarily within 10 days after execution; evasion of voluntary implementation shall implicate the liability defined in the agreement in accordance with the Civil Code of the Republic of Azerbaijan; if a party evades voluntary implementation the other party can apply to a notary or court for mandatory enforcement; is confirmed by the court or notary before mandatory implementation. Mediation costs Mediation costs include: the fee paid to mediator or mediation organization including the reward paid to the mediator or the mediation organization for a positive outcome of the proceeding; costs of the mediator or mediation organization including costs of travel, accommodation, and food.

Legal Act: The Law of the Republic of Azerbaijan No. 1584-VQD on Changes to Civil, Tax, Housing and Custom Codes of the Republic of Azerbaijan (the Law) Authority: Milli Majlis (Parliament) Enactment date: 03 May 2019 Effective date: 26 May 2019 The Law includes an exemption to Article 91.4 of the Civil Code for LLCs which are micro and small entrepreneurship subjects from the obligation to engage an independent (external) auditor annually to confirm the correctness of their financial statements. The criteria for the definition of micro and small entrepreneurship subjects is set by the Decision No. 556 of the Cabinet of Minister of the Republic of Azerbaijan dated 21 December 2018 as follows: Microentrepreneur - the average number of employees - 1-10, annual turnover – less than 200 thousand manats; Small entrepreneur - the average number of employees -11-50, annual turnover – between 200 thousand manats and 3 000 thousand manats. * Before the Law became effective, liability for avoidance from the mandatory audit included an administrative fine of 300-600 AZN for officers of the LLC and of 1500 – 2500 AZN for the LLCs meeting the above mentions criteria.

Issue “POSCO DAEWOO” Corporation (“POSCO”) entered into several agreements with “Grand Motors” LLC (“Grand Motors”) on the supply of construction machinery. The agreements contained arbitration clauses which submitted disputes among the parties to the Korean Commercial Arbitration Council (“Council”). POSCO brought an arbitration case before the Council and subsequently applied to the Administrative-Economic Board of the Supreme Court of the Republic of Azerbaijan to enforce the award of the Council against Grand Motors. The Supreme Court refused to enforce the award based on the protest of Grand Motors that it has not been given proper notice of the appointment of the arbitrator and the arbitration proceeding. POSCO submitted a complaint to the Constitutional Court claiming that the Decision of the Supreme Court not to enforce the arbitration award violated Article 60 (Administrative and Court Protection of Rights and Freedoms) of the Constitution of the Republic of Azerbaijan (the “Constitution”) and Article 138 (Court Notifications) of the Civil Procedure Code of the Republic of Azerbaijan (“CPC”). POSCO indicated that the Supreme Court in its decision referred to Articles 465 and 466 of CPC, while, these articles are in chapters 47 and 48 of CPC, which relate to the recognition and enforcement of judgments of foreign courts. Instead, the court should have referred to Article 476 of CPC which specifically deals with the enforcement of foreign arbitral awards. Also, Article 476 requires the party against whom the award is invoked to provide proofs that it has not been given proper notice of the appointment of arbitrator and the arbitration proceeding or it has otherwise not been able to present his case which to the ignorance of the Supreme Court Grand Motors failed to do. COURT’s ANALYSIS The Court stated the following: Both New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (Article 1 (b)) and Article 476 of CPC allow courts to refuse the recognition and enforcement of foreign arbitral awards provided that the party against whom the award is invoked furnishes to the court that it has not been given proper notice of the appointment of arbitrator and arbitration proceeding or it has otherwise not been able to present his case. The Supreme Court instead referred to provisions of Chapter 48 which lists the documents to be attached to the application on enforcement of foreign court decisions. … Thus, the Supreme Court erroneously shifted the burden of proof on proper notification of the appointment of an arbitrator and arbitration proceeding to the party requesting enforcement AND By doing so, the Supreme Court violated both the principles of Article 127 of the Constitution and Article 9 of CPC, i.e. impartiality, fairness, and adversarialilty of process, equality of parties, examination of cases based on facts and law. A court shall always ensure the adversariality of a process. The Supreme Court, on the other hand, did not comply with the requirements mentioned above satisfying itself with the explanations provided by Grand Motors and this way putting the authenticity of the proofs into doubt. Thus, the Supreme Court did not properly examine the existence of grounds for refusing the recognition and enforcement of the foreign arbitral award and ultimately violated the principles of justice based on equality of arms. DECISION The Court annulled the decision of the Supreme Court by Articles 60, 127 of the Constitution and article 476 of CPC and ordered the re-examination of the case following its decision and in the manner and within the period specified by civil procedural legislation.

  With the support of EKVITA a roundtable was held on August 5-6 as part of the EU-funded project "Support and Strengthening capacity of the trade policy and WTO Department of the Ministry of Economy in the WTO Accession Negotiations". First day of the event focused on issues such as Illegal, Unregulated, Uncontrolled (“IUU”) fishing, overfishing, and prohibition of subsidies for overcapacity. Presentation was made by Alicia Greenidge, the Project Group Leader and the consultant in the WTO talks on fishing subsidies. On the second day of the event, discussions evolved around proposals for WTO Reforms, mainly covering expected new trends in WTO activities, current status of the Republic of Azerbaijan in WTO accession negotiations, and harmonization of local legislation with WTO requirements. The roundtable was concluded with presentations by international expert, Peter Morrison. The project took place at the headquarters of EKVITA, a member of the consortium responsible for project execution.

Legal Act: Order No.1265 “On Raising the minimum monthly wage ” (“The Order”) Authority: President Enactment Date: July, 18 2019 Effective Date: June, 19 2019  According to the Order, the minimum monthly wage will be increased from 180 manat to 250 manat from September 1, 2019. Legal Act: Order No.1209 “On Acceleration of reforms in the energy sector of the Republic of Azerbaijan” (“The Order”) Authority: President Enactment Date: May, 29 2019 Effective Date:  May, 30 2019 According to the Order, the following shall be entrusted to the Ministry of Energy of the republic of Azerbaijan: Preparation of a long-term strategy for the development of the energy sector of the Republic of Azerbaijan; Preparation of proposals for a step-by-step transition to a competitive model of a liberal market in the power industry; Improvment the efficiency of the country's electric power system, as well as making proposals to attract private investments in these areas for stimulation of the use of renewable energy sources. Furthermore, The Cabinet of Ministers of the Republic of Azerbaijan was entrusted with preparing draft laws of the Republic of Azerbaijan “On renewable energy sources in electricity production”, “Regulators in the field of energy and utilities”, as well as developing new laws of the Republic of Azerbaijan “On energy” and “Gas supply”. Legal Act: Decree No.724 On Amendments to the Decree No. 1505 “On approval of the list of countries and territories of preferential taxation” dated Jule 11, 2017 (“The Decree”) Authority: President Enactment Date: June, 11 2019 Effective Date: June, 12 2019 In accordance with the Decree , “List of Privileged taxpayers and territories” has been approved as follows: The list of these countries and territories is as follows:  Andorra , Anguilla, Antiqua and Barbuda, Aruba, Antilles (the Netherlands), Bahamas, Bahrain, Bermuda islands, British Virgin Islands, Belize, Barbados, Gibraltar, Jersey, Dominica, Hong Kong (China), Cayman Islands, Cook Islands, Costa Rica, Guernsey, Grenada, Liberia, Liechtenstein, Maldives, Isle of Man, Marshall Islands, Montserrat, Monaco, Macao (China), Niue, Panama, Palau, Seychelles, St. Kitts and Nevis, Samoa, St. Vincent and the Grenadines, Saint Lucia, Turks and Caicos Islands, Vanuatu, Virgin Islands (USA) Legal Act: Decree No. 759 “On the establishment of a new mechanism in the agricultural sector” (“The Decree”) Authority: President Enactment Date: June, 27 2019 Effective Date: June, 28 2019 According to the Decree: “The Rules for Agricultural Subsidies” has been aproved (Enters into force on January 1, 2020.) The base used in the calculation of subsidies in crop production is estimated at 200 (two hundred) manat (Enters into the force on January 1, 2020); The Ministry of Agriculture has been instructed to create “Subsidies” information system and to provide subsidies from January 1, 2020. Legal Act: Law of the Republic of Azerbaijan No. 1603-VQD “On Amendments to the Law On termination inspections in the field of entrepreneurship” (“The Law”) Authority: Milli Mejlis  Enactment Date: May, 30 2019 Effective Date: June, 20 2019 According to the amendments, The list of inspections carried out before January 1, 2021 also includes fire safety control, state control over construction, control over the safe operation of hazardous facilities and mining areas, as well as the radiation safety control, despite the termination of inspections in the field of entrepreneurship in the territory of the Republic of Azerbaijan. Legal Act: Law of the Republic of Azerbaijan No. 1588-VQD “On Amendments to the Civil Code of the Republic of Azerbaijan” (“The Law”) Authority: Milli Mejlis Enactment Date: May, 17 2019 Effective Date: June, 05 2019 In accordance with amendments , In the Freight Contract, in the section “carriage of goods” of the Civil Code, the concept of “supplier” was clarified, and concepts such as “receiver” and “expeditor” were added. Thus, the receiver is a competent individual or legal entity who is responsible for receiving the goods on the basis of the transaction . An expeditor is an individual or legal entity that transports cargo for a fee from its location to its destination on the basis of an agreement and has vehicles under the right of ownership, lease or use. Furthermore, The claim period against the expeditor was set as follows: 1 year from the date the claim was filed. Before filing a claim against the expeditor, a written claim is required. A claim may be filed within the claim period. If the expeditor rejects or partially accepts the claim or does not respond to the claim within 30 days, a lawsuit may be filed. Legal Act: “Law of the Republic of Azerbaijan No. 1583-VQD “On Amendments to the Code of Administrative Offences of the Republic of Azerbaijan” (“The Law”) Authoity: Milli Mejlis Enactment Date: May, 03 2019 Effective Date: June, 20 2019 According to the above mentioned Law, amendments have been made to administrative sanctions established by the Code of Administrative Offenses for violation of legislation concerning accounting. Thus, according to the amendments, officials will be fined in the amount of 300 to 400 manat in the following cases: “According to the requirements of the Law “On Accounting”, for not creating the appropriate structural unit for the purpose of accounting in the accounting subjects by the head of the accounting entity or not attracting business entities on the basis of an agreement, for not organizing accounting services. • Appointment of persons who are not professional accountants to the position of chief accountant of relevant accounting organizations (Article 3.4 of the Law of the Republic of Azerbaijan “On Accounting”), as well as granting authority for carrying out the resposibilities of their chief accountant. Legal Act: Law of the Republic of Azerbaijan No. 1578-VQD “On Amendments to the Water Code of the Republic of Azerbaijan, the Forest Code of the Republic of Azerbaijan, the Land Code of the Republic of Azerbaijan and the Town-Planning and Construction Code of the Republic of Azerbaijan (“The Law”) Authority: Milli Mejlis Enactment Date: May, 30 2019 Effective Date: June, 20 2019 According to the amendments, In accordance with the Law “On Environmental Impact Assessment” a document on strategic environmental assessment (SEA) is prepared for projects of state programs on the use of water objects, forest fund, as well as their protection, which is conducted by the state environmental review group. In addition, “Strategic Environmental Assessment” (SEA) for the drafts of stratetegic documents on land use shall be undertaken as well. Environmental impact assessment (EIA) document on construction projects affecting the condition of water as well as forests is prepared in accordance with the Law of the Republic of Azerbaijan “On Assessment of Environmental Impact” and also is carried out through the state ecological examination. In accordance with the amendment to the Town-planning and Construction Code of the Republic of Azerbaijan, depending on the drafting the strategic or precise territorial planning documents, the “Strategic Environmental Assessment” (SEA) of documents is carried out in accordance with the Law of the Republic of Azerbaijan on environmental impact assessment. Additionally, the document on “Environmental Impact Assessment” (EIA) is drafted and a state environmental review of this document is being conducted..

Legal Act: Decision No. 237 on Confirmation of Rules on organization of the process of certification for professional accountants, examination and state registry of certified professional accountants. Authority: the Cabinet of Ministers Enactment Date: 22 May 2019 Effective date: 24 May 2019 The Rules regulate organization of the process of certification for professional accountants, examination and state registry of certified professional accountants as well as the form of the professional accountant certificate. The Rules establish the following eligibility requirements for auditors: Have the relevant certificate stipulated by the Law on Accounting for professional accountants; be a member of a professional accounting organization. The organization of the certification process and examination shall be carried out by the State Examination Center. The certification process will be two staged; the first stage covering questions on accounting and the second stage questions on legislation on budget, tax, civil and labor legislation questions. The certificate will be valid for 5 years.   Legal Act: The Decree on state suppor in internal market research for fostering competitive production ability of micro, small and medium entrepreneurship subjects Authoriy: President of the Republic of Azerbaijan Encatment date: 29 May 2019 Effective date: 30 May 2019 The Decree defines the rules, forms and conditions of internal market researh for fostering competitive production ability of micro, small and medium entrepreneurship subjects (SMEs). The main purpose of this Decree is to provide SMEs with financial and informational support to check the internal market and this way increasing competitive local production. The selection of SMEs which will get the above mentioned support will be carried out by the Small and Medium Sized Business Agency of the Republic of Azerbaijan. The sum for each market research support case cannot exceed 20000 (twenty thousand) manats: 80% of the market research is financed and the rest is paid by the micro entrepreneurship subject himself. 50% of the market research is financed and the rest is paid by the small entrepreneurship subject himself. Medium entrepreneurship subjects will be exempt from the payments for trainings and workshops on the theme and provided with related informational support on the regular basis.   Legal Act: Edict No. 1212 on improvement of the management in the fields of anti-money laundering and fight against financing of terrorism Authority: President of the Republic of Azerbaijan Enactment date: 30 May 2019 Effective date: 31 May 2019 The Edicts stituplates the preparation of legal acts to enable the move of the Financial Monitoring Service to the auspecies of the Ministry of Taxes.   Legal Act: Decision No. 247 on confirmation of the list of services and fees paid for them to the Intellectual Property Agency of the Republic of Azerbaijan related to invention, utility model, industrial design, trademark and geographical indications Authority: Cabinet of Ministers of AR Enactment date: 27 May 2019 The decision confirms the list of services and fees paid for them to the Intellectual Property Agency of the Republic of Azerbaijan related to invention, utility model, industrial design, trademark and geographical indications and assigns the Tarif Council of the Republic of Azerbaijan with related tasks.

Legal act: Law of the Republic of Azerbaijan No. 1650-VQD on Labor Pensions (the “Law”) Authority: Milli Majlis Enactment date: June 12, 2019 Effective date: October 1, 2019 According to the Law, the minimum amount of  labor pension will increase from 160 to 200 manats from the October 1, 2019. Legal act: Law of the Republic of Azerbaijan No. 1618-VQD on Amendments to the Law on Insurance Activity (the “Law”) Authority: Milli Majlis Enactment date: June 27, 2019 Effective date: January 1, 2020 According to the Law, provisions on co-insurance were added to the Law of the Republic of Azerbaijan on Insurance Activities. Thus, co-insurance is a system of relations based on the distribution of risks, including the profit and loss arising from the fund through co-insurance fund. A co-insurance fund is a sum of money paid by individuals and legal entities for the purpose of insurance of their property interests based on co-insurance, as well as funds allocated from the state budget for this purpose. As for a co-insurer, it is an insurer that has the appropriate license to operate on a basis of co-insurance.

As part of its efforts to support tens of thousands of micro, small and medium-sized enterprises (MSME) facing the challenge of the coronavirus pandemic, the EBRD has created an online crisis management knowledge and information hub designed specifically for the small and micro enterprises that most need practical assistance now to manage the impact of coronavirus.   The “Know How to…in a Crisis” online hub provides interactive training, videos from sector experts and vital country-specific information about resources for MSMEs provided by governments and local banks. The first Customers and suppliers module of the platform already launched.   The new module called Financial Management Essentials launched on 26 June. The aim of this module is to develop essential financial skills and knowledge specifically tailored to helping small businesses survive and respond proactively in a crisis and to provide practical tools to help them plan and implement what they have learned. Three modules focusing on Financing your firm; Your staff: your key asset and Management and leadership challenges will be launching over the next few weeks. It is entirely free to use. View the programme at www.ebrdknowhowacademy.com Supported by @EUnear @europeaid, the EBRD’s Small Business Impact Fund (@MOF.Japan.english, @moefkorea, @minfinlux, @sidaSverige, Italy, @USTreasuryDept, Switzerland, TaipeiChina). #MSMEday #EBRD  

Xülasə, Oktyabr 2018

Newsletter, August 2019

Newsletter, July 2019

The Law on the Republic of Azerbaijan on Mediation was enacted

The Law on Changes to Civil, Tax, Housing and Custom Codes of the Republic of Azerbaijan

The Constitutional Court of the Republic of Azerbaijan Annulled the Supreme Court’s Decision on Refusal to Enforce an International Arbitration Award

Support and Strengthening capacity of trade policy and WTO Department of the Ministry of Economy in the WTO Accession Negotiations

Newsletter, July

Newsletter, June 2019

Legal Update

Know How Academy

Xülasə, Oktyabr 2018
Newsletter, August 2019
Newsletter, July 2019
The Law on the Republic of Azerbaijan on Mediation was enacted
The Law on Changes to Civil, Tax, Housing and Custom Codes of the Republic of Azerbaijan
The Constitutional Court of the Republic of Azerbaijan Annulled the Supreme Court’s Decision on Refusal to Enforce an International Arbitration Award
Support and Strengthening capacity of trade policy and WTO Department of the Ministry of Economy in the WTO Accession Negotiations
Newsletter, July
Newsletter, June 2019
Legal Update
Know How Academy
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