By AZE.US
Imported products on Azerbaijani store shelves often cost considerably more than comparable goods sold in Europe, with consumers reporting price differences of two or even three times for some items.
The gap is particularly noticeable for tea, cheese, chocolate, confectionery and other everyday products.
Azerbaijanis who work or travel abroad say many goods are cheaper in European stores despite having comparable ingredients and quality.
Experts say the retail price depends on far more than the product’s original cost. Transportation, storage, customs charges, taxes, importer expenses and retailer markups are all added before the goods reach consumers.
Azerbaijan applies customs duty rates of 0%, 5% and 15%, depending on the category. Some food products are exempt from customs duties, although value-added tax and logistics expenses can still increase their final price.
Products manufactured locally in Europe or transported from neighboring countries generally have lower delivery costs. Goods imported into Azerbaijan may travel much farther and pass through several intermediaries, with each stage adding to the retail price.
However, taxes and transportation alone may not fully explain the difference. Prices can also be affected by the number of suppliers operating in the market, the level of competition and the markups imposed by importers, distributors and retailers.
Azerbaijan’s antimonopoly and consumer market regulator said it conducts regular monitoring to prevent unjustified price changes and ensure compliance with competition legislation. Authorities take action when violations are identified.
Prices for goods included on a government-approved list are regulated by the state. Businesses are free to set prices for most other products based on market demand and supply.
The price gap between Azerbaijan and Europe therefore develops across the entire supply chain.
Without greater transparency, however, consumers cannot easily determine how much of the increase comes from unavoidable import costs and how much reflects the markups of intermediaries and retailers.
AZE.US