AZE.US
Azerbaijan could reduce the monthly duty-free limit on personal orders from Temu and other foreign e-commerce platforms from $300 to $50, a move that would significantly raise costs for online shoppers.
No official decision has been announced, but the proposal is being discussed amid growing complaints from local businesses that they face taxes, customs duties, certification expenses and logistics costs while foreign platforms sell directly to Azerbaijani consumers under preferential rules.
Another possible scenario would require Temu and similar platforms to register for tax purposes in Azerbaijan and collect taxes at the time of purchase. This would also increase prices, although buyers would see the final cost before completing an order.
Rovshan Muradov, a member of the Azerbaijani parliament’s Committee on Economic Policy, Industry and Entrepreneurship, told Globalinfo.az that the rapid expansion of foreign e-commerce platforms has created new challenges for domestic retailers.
Local importers carry obligations related to customs clearance, taxation, logistics, certification and retail infrastructure. Individual consumers, meanwhile, can currently order up to $300 worth of goods from abroad each month under simplified customs rules.
Muradov said the difference is beginning to affect domestic trade, employment, the financial stability of local businesses and state budget revenues.
The Change Would Affect More Than Temu
A reduction of the threshold to $50 would not apply exclusively to Temu. It would also affect personal orders placed through Trendyol, AliExpress, Amazon, Shein and other foreign platforms.
Muradov warned that a sharp reduction could substantially increase the number of customs declarations, place additional pressure on the customs system and encourage consumers to split orders among relatives or other individuals.
He said any decision should take into account consumer behavior, the technical capacity of the customs system and the potential impact on budget revenues, as well as the interests of local businesses.
Tax Could Be Collected at Checkout
Muradov said a more practical option would be to require foreign platforms to calculate and collect taxes when a purchase is made instead of charging individual buyers after their packages arrive at the border.
Under such a system, Temu and other platforms would report their Azerbaijani sales, transfer the collected taxes to the state budget and display the final price to consumers before payment.
The lawmaker cited the European Union’s Import One-Stop Shop system and platform-based tax models promoted by the OECD as examples of how countries can tax large volumes of small online orders without processing each parcel separately.
This model would likely make some Temu products more expensive. However, Muradov said the increase may not equal the full tax burden because platforms could absorb part of the additional cost through their discount, commission and logistics policies.
Temu Is Already Facing Regulatory Scrutiny
The debate comes as Azerbaijan’s State Service for Antimonopoly Supervision and Consumer Market Control is investigating PDD Holdings, Temu’s parent company, over possible violations of the country’s Competition Code.
The regulator is examining whether Temu used extremely low prices, below-cost sales or other pricing practices that could restrict competition. The opening of the case does not mean that violations have been proven, and no final ruling or penalty has been announced.
Azerbaijani economist Rashad Hasanov previously said that if Temu is required to change its discount policies, some products could become more expensive for local consumers while domestic retailers would gain more favorable competitive conditions.
Economist Natig Jafarli has questioned whether Temu’s model amounts to traditional dumping, noting that the platform does not directly manufacture most of the products it sells.
He nevertheless said the government should monitor product quality, safety and consumer complaints.
Jafarli also warned that any fines or additional financial obligations imposed on the company could ultimately be passed on to Azerbaijani consumers through higher delivery charges or changes to service terms.
For now, the existing $300 monthly limit remains in place, and Temu continues to operate normally in Azerbaijan.
AZE.US