The work carried out in 2017 on the measures envisaged by the Decree of the President of the Republic of Azerbaijan No.2947 of June 2, 2017

(On the Index of Economic Freedom)

7.2.1.1 Adaptation of national legislation to accelerate the implementation of the New Computerized Transit System (NCTS) of the European Union, taking measures to create a Transit Guarantee System

- At the initiative of the State Customs Committee of the Republic of Azerbaijan, an appropriate appeal was addressed to the chairman of the Joint Committee of the European Union – European Free Trade Association (EFTA), the governing body of the above-mentioned conventions through diplomatic channels, and at the meeting held in Oslo, Norway on December 5, 2017, it was decided to grant Azerbaijan an informal observer status. In this regard, "SGS" company applied to the Ministry of Economy for Azerbaijan's accession to the NCTS. The Letter No. IN-X/O-16399/2017 dated December 22, 2017 was addressed to the State Customs Committee for consideration of the issue of holding a meeting with the said company.

2.2.1.1 On the Government Expenditure Index:

1. Continuation of the Fiscal Consolidation process

2. Creation of a medium-term Cost Framework

3. Adoption of Fiscal Guidelines to regulate the use of oil revenues

Draft Decrees of the President of the Republic of Azerbaijan "On the Procedure for the Development of a Medium-term Expenditure Framework" and approval of this Procedure were prepared by the Ministry of Finance and submitted to the Cabinet of Ministers accordingly.

In accordance with the Letter of the Ministry of Finance dated October 25, 2017, the Draft Law of the Republic of Azerbaijan “On amendments to the Law of the Republic of Azerbaijan ”On the Budget System and Draft Decrees of the President of the Republic of Azerbaijan on the Application of this Law, "Instruction on calculating the upper limit of the consolidated budget expenditure in accordance with the budgetary guidelines" and the Decree of the President of the Republic of Azerbaijan on the approval of this Instruction were submitted to the Cabinet of Ministers.

The draft "Procedure for the development of a Medium-term Macro-fiscal Framework" was prepared and submitted to the Cabinet by the Ministry of Economy with a letter dated June 5, 2017.

The Draft Law of the Republic of Azerbaijan "On Amendments to the Law of the Republic of Azerbaijan on Regulated Prices", as well as the Draft Decree of the President of the Republic of Azerbaijan envisaging the application of this Law, were submitted to the Cabinet of Ministers of the Republic of Azerbaijan in the Letter No.IN-X/O-15055/2017 dated December 1, 2017 by the Ministry of Economy.

2.2.2.1 On the Monetary Freedom Index:

1. Continuing measures to reduce Inflation, including the restriction of the Monetary Base

2. Further liberalization of prices (currently in Azerbaijan, 39 different product prices are regulated by Tariff (Price) Council)

The Draft Law of the Republic of Azerbaijan "On Amendments to the Law of the Republic of Azerbaijan on Regulated Prices", as well as the Draft Decree of the President of the Republic of Azerbaijan envisaging the application of this Law, were submitted to the Cabinet of Ministers of the Republic of Azerbaijan in the Letter No. IN-X/O-15055/2017 dated December 1, 2017.

Letter No. IN-X/O-8943/2017 dated July 14, 2017 was sent to the Administration of the President of the Republic of Azerbaijan for consideration of the issue of determination of Free Tariffs on the Customs Territory of the Republic of Azerbaijan and storage of goods carried out from this territory by making amendments to the Laws on temporary storage and storage of goods in customs warehouses.