“If customs duties are not abolished, VAT is not reduced, it will be difficult for clothing stores” |
“During the quarantine restrictions, local importers faced a serious sales problem after consumers began to actively buy clothes from online stores.”
This Azerbaijan Chairman of Retail Clothing Importers Association Farid Nowruzi said.
According to his information citing official sources, during the quarantine period, Azerbaijani consumers spent approximately 165 million manats in foreign online stores, and mainly clothes Turkey bought from suppliers (Turkey according to sources, this amount is twice as much):
“This is a large amount, under favorable conditions, this money could have remained in the country. We, as an association, and even as clothing consumers, understand that every citizen has the right to choose and wants to save as much as possible. But we also recognize the problem of high prices in our stores and want to solve it. The price of goods in brand stores is compared to the prices recommended by the manufacturer 20It should not exceed %-30%. “Unfortunately, today this difference reaches 40%, and sometimes it is even higher for clothes from Turkey.”
According to the chairman of the association, if preferential conditions were not created for the import of goods from foreign online platforms, they might have been able to overcome the situation:
According to the chairman of the association, if preferential conditions were not created for the import of goods from foreign online platforms, they might have been able to overcome the situation:
“Currently, the $300 limit set for individuals importing goods for personal use is being misused. In particular, I want to note that we are not against restrictions on personal use, but when this privilege is actively used by business people, they tax avoid paying, which leads to unfair competition and allows them to sell similar products at a lower price. Then we are forced to talk about the current situation and look for ways out of it in order to stay afloat in the market.”
Farid Nowruzi noted that, in order for importers not to lose in the competition and not to lay off their employees, the restrictions applied to imported clothes customs there is a need to cancel the fee:
“Including on a number of commodity groups, mainly child reduction of VAT on clothing offer we do If we achieve this, the consumer will not need to turn to the services of online stores, because it will be possible to buy goods at competitive prices both in local stores and on local online platforms. Otherwise, it will be difficult for us to compete in such a situation. From now on, many local companies are reducing the number of stores and, accordingly, the number of employees. They don’t even rule out closing the business.”
Farid Novruzi added that another problem is giving a brand image to a cheap product, attaching a fake logo and presenting it for sale as original. Currently, the scale of the counterfeit goods problem in Azerbaijan is terrible.