New Important Laws And Proposed Amendments To The Constitution Of Azerbaijan

The Azerbaijani Parliament has recently adopted several new important laws and proposed amendments to the Constitution of Azerbaijan. Below we summarize the Law of the Republic of Azerbaijan "On Antidumping and Countervailing and Protective Measures" (the "Antidumping Law"), the Law of the Republic of Azerbaijan "On Cooperation in Agriculture" (the "Law on Agricultural Cooperatives"), and, finally, a draft Referendum Act "On Introducing Amendments to the Constitutional of the Republic of Azerbaijan" (the "Draft Referendum Act").

ANTIDUMPING LAW

The Antidumping Law is said to be aimed at protecting the interests of local producers from dumping, subsidized imports and import surpluses by way of the application of antidumping and compensatory measures, as well as the implementation of special customs duties.

The law is fairly detailed and sets forth rules for determining whether or not a particular import would be considered as dumping under the law, calculating the costs and profits incurred or generated by the import suspected of constituting dumping, comparing the export price and the normal price, calculating dumping profit margins and subsidies by a foreign state, and the like. Additionally, the law sets forth specific rules for the determination of damages caused to local producers by dumping and subsidized imports, as well as taking temporary anti-dumping or countervailing measures or setting forth compensatory customs duties, which can be in the form of duties or a cash deposit.

According to the Antidumping Law, temporary anti-dumping and countervailing measures may be taken not earlier than 60 days from the date the investigation is initiated by the authorities under one of the grounds stated in the law (e.g., on its own initiative or further to an application by an interested party) at a rate not exceeding the dumping margins or the amount of relevant subsidies. Temporary anti-dumping and countervailing measures, such as the application of anti-dumping or countervailing duties, may only be taken after completion of the investigation into complaints by local manufacturers and only when the dumping policy causes material damage to the national industry. In general, anti-dumping and countervailing measures may not be applied for more than five years.

The Ministry of Economy and the Cabinet of Ministries are charged with carrying out anti-dumping, compensatory and countervailing measures.

The Antidumping Law will become effective 90 days...