BAKU, Azerbaijan, August 4. Up to 70% of transportation costs will be compensated in Azerbaijan as a new support for exporters.
The development of the non-oil and gas sector and the diversification of exports are among the priority directions in Azerbaijan's economic policy. As a result of the reforms implemented in recent years, the volume and geography of non-oil and gas exports are expanding, and various support mechanisms are being applied to strengthen the position of local products in foreign markets. The favorable business environment created for entrepreneurs in the country, export promotion tools, concessions provided in industrial zones, and other incentive measures make a significant contribution to non-oil and gas exports.
As part of this policy, the state is consistently improving export support mechanisms in order to ensure the sustainability of positive dynamics in non-oil and gas exports, increase the competitiveness of non-oil and gas products in international markets, and reduce the logistics costs of exporters.
The next important step taken in this direction is the decree of President of Azerbaijan Ilham Aliyev "On additional measures to stimulate the export of non-oil and gas goods and support transportation costs" dated June 9, 2026.
According to the decree, export transportation support will be applied only to the export of non-oil and gas goods of Azerbaijani origin. The amount of support will be calculated based on two criteria: the amount paid in cash for the costs incurred for the transportation of the exported goods and the customs value of the exported goods, depending on the type of transport used. When transportation is carried out by rail, air, sea, or road transport registered in Azerbaijan, 70% of the non-cash transportation costs will be taken into account, and when it's carried out by road transport registered in other countries, 50% will be taken into account. In addition, 15% of the customs value of the goods will be set as the upper limit for motor, rail, and air transport, and 5% for sea transport. The exporter will be paid the amount that is lower than these two calculations.
Internal transportation support will apply to the transportation of non-oil and gas goods of Azerbaijani origin produced in Nakhchivan to other regions of the country by land. In this case, 70% of the amount paid by the entrepreneur for transportation costs in a non-cash manner will be paid to that business representative as a state support. Payments will be calculated based on the applications of entrepreneurs carrying out transportation during the quarter and will be paid by the Ministry of Economy.
The support mechanism will be applied to transportation carried out from September 1, 2026, through September 30, 2036.
The rule of origin for the application of the mechanism, operations, and persons not subject to support, the list of goods to be supported, country groups, the procedure for submitting and considering applications, as well as the calculation procedure for transportation by different modes of transport (multimodal) will be determined by separate regulatory acts.
Thus, the new support mechanism will create additional opportunities for exporters to optimize logistics costs, expand access to new markets, and plan export activities on a long-term basis. As a result, the competitiveness of non-oil and gas products of Azerbaijani origin in international markets will increase, contributing to the sustainable growth of non-oil and gas exports, diversification of exports, and further strengthening of the country's foreign trade potential.
