FAQs
- In some stores, the prices of goods offered for sale are not displayed. How is this issue regulated by law?
- According to the law, all goods offered for sale must have a properly prepared price tag indicating the name of the product, its type, and its price. The reverse side of the price tag must contain the signature of the responsible person and the date on which it was completed.
- Source: Decision of the Cabinet of Ministers of the Republic of Azerbaijan dated 1998, “On the Rules of Trade, Household, and Other Types of Services (Performance of Work, Provision of Services) in the Republic of Azerbaijan.”
- What information must a seller provide to the consumer about a product?
- The seller must provide the consumer with complete information about the product (work or service), including its price, consumer properties, terms of purchase, warranty obligations, and rules for use, storage, and safety. In the case of food products, the most important information includes the ingredients, expiration date, caloric value, the amount of substances harmful to health, and other relevant details. If false or insufficient information about a product is provided and this results in the consumer purchasing a product (work or service) that does not have the required properties, the consumer has the right to terminate the contract.
- How is the warranty period of a product determined?
- The warranty period is the period during which the warranty obligations for a product remain valid. Unless a different period is specified in the sales contract, the warranty period begins from the moment the product is handed over to the buyer. The warranty period is indicated on the warranty card and in the product’s (work or service) passport.
- If warranty repair is carried out, the warranty period is extended by the amount of time the product remains under repair. This period is calculated from the date on which the consumer submits a request for the устранation of defects. If the product is replaced, the warranty period is recalculated and begins anew from the date of replacement.
- What rights does a consumer have if a defect or counterfeit is discovered during the warranty period? How and in what cases are the buyer’s rights protected?
- If a consumer discovers a defect or counterfeit in a product during the warranty period, they have the right, at their own discretion, to demand from the seller or the manufacturer one of the following:
• replacement of the product with another product of proper quality;
• a proportional reduction in the purchase price;
• elimination of the defect;
• reimbursement of expenses incurred by the consumer;
• termination of the contract and compensation for damages suffered. - The seller is obliged to accept the return of the product of improper quality from the consumer and to fulfill one of the consumer’s stated demands. If the consumer requests replacement of the product, the request must be fulfilled immediately if the product is available. If the product is not available, the payment must be refunded within two months from the date the application is submitted. If the purchased food product is found to be of inadequate quality within its expiration date, the seller must replace it with a product of proper quality or refund the amount paid. Consumer claims are considered upon submission of a receipt, sales receipt, or cash register receipt, and for products with a warranty period, a technical passport or another document replacing it.
- If a consumer discovers a defect or counterfeit in a product during the warranty period, they have the right, at their own discretion, to demand from the seller or the manufacturer one of the following:
- What should a consumer do if a product without a warranty turns out to be defective?
- If defects are discovered in goods for which no warranty period has been established, the consumer has the right to submit claims to the seller (manufacturer) within a period not exceeding two years, or a longer period if applicable, provided that no other terms are stipulated in the contract.
- Source: Civil Code of the Republic of Azerbaijan, Article 589.2
- What should a buyer pay attention to when shopping online?
- Regardless of the form in which a product is purchased or provided to the consumer, the requirements of the legislation must be strictly observed. Consumers should inspect the product before accepting it from the seller and should request the necessary documents related to the product (receipt, sales or cash register receipt, and for products with a warranty period, a technical passport or another equivalent document).
- When purchasing goods (works or services) online, in order to avoid deception, minimize risks, and prevent violations of consumer rights, special attention should be paid to whether the seller provides essential information, including their name and address, website and email address, telephone number, taxpayer identification number (TIN), as well as the price of the goods (works or services), among other details. Consumers are advised to refrain from purchasing products from sellers who fail to provide such information.
- What is the shelf life of a product and how is it calculated?
- The shelf life is the period during which a product is deemed fit for use for its intended purpose. The shelf life of a product is calculated from the date of manufacture and is determined either by a specific time period indicating usability or by the expiration date marking the end of its suitability for use.
- Source: Civil Code of the Republic of Azerbaijan, Article 584
- Are accessories sold together with a mobile phone covered by a warranty?
- Unless otherwise specified by legislation or the contract, the warranty period for auxiliary accessories must not be shorter than the warranty period of the main product (work or service).
- What rights does a consumer have if the repair period of a product is extended?
- If the service provider fails to begin the performance of the service contract on time or does not complete the work within the agreed period, the consumer has the right to withdraw from the contract and demand compensation for damages. If the service provider loses, damages, or destroys the item received from the consumer, they must provide the consumer with another product of equivalent quality and value. If this is not possible, the service provider must, with the consumer’s consent, compensate the value of the item and the damages incurred within no later than one month.
- Which documents must be provided to the consumer regarding a product?
- At the consumer’s request, the seller (service provider) is obliged to provide documents confirming the origin, quality, and safety of the product.
- How is product replacement carried out?
- Unless a longer period is established by the seller, the buyer may exchange a non-food product within 14 days from the date of delivery for another product of a different size, shape, dimensions, style, color, or a similar configuration. If there is a difference in price, the necessary settlement is made with the seller. If the required replacement product is not available, the buyer may return the product and receive a refund. The returned product must not have been used and must retain its consumer properties. At the same time, the buyer must provide proof that the product was purchased from that specific seller.
- Which goods are not subject to exchange or return?
- By Decision No. 114 of the Cabinet of Ministers dated 1998, a list of goods not subject to exchange in retail trade outlets within the country has been approved. These include:
• gold and gold products;
• products made of precious and semi-precious metals and stones;
• all types of fabric and certain goods sold by length or measurement (such as ribbons, towels, trims), except in cases of manufacturing defects;
• perfumery and cosmetic products;
• underwear for preschool-age children and newborns;
• household chemical products;
• personal hygiene items (toothbrushes, combs, hair rollers, etc.);
• children’s toys;
• used men’s, women’s, and children’s socks and underwear without tags, except in cases of manufacturing defects;
• plastic products intended for food use;
• food products that have been paid for and removed from the store (within their shelf life).
- By Decision No. 114 of the Cabinet of Ministers dated 1998, a list of goods not subject to exchange in retail trade outlets within the country has been approved. These include:
- Can a consumer check the quality, size, weight, and price of a product at the place of purchase?
- A consumer has the right to check the quality, completeness, size, weight, and price of the purchased product. In such cases, the seller must, at the consumer’s request, provide measuring and control devices as well as documents confirming the product’s price.
- If it is necessary to determine the reasons for the loss of product quality during the warranty period, the seller must send the product for expert examination within three days after receiving the consumer’s written application. The examination is conducted at the seller’s expense.
- Is it necessary to conclude a contract when purchasing a product, and how is this done?
- As a rule, relations between the consumer and the counterparty are regulated by contracts. In cases where the service provider fails to fulfill their obligations, the consumer may protect their rights and claim compensation for damages on the basis of such a contract.
- How should documentation be handled when a defective product is submitted for repair?
- When a defective product is submitted for repair, documentation must be оформed in written form. The customer must be provided with a service slip, cash register receipt, or receipt. The documents must indicate the date the order was accepted, the cost of the work to be performed, and other relevant details.
- What is a Certificate of Origin and what advantages does it provide to entrepreneurs?
- A Certificate of Origin is a document issued by the authorized body of the exporting country that confirms the country of origin of the goods. The country of origin of goods imported into or exported from the customs territory of the Republic of Azerbaijan is determined for the purpose of applying tariff and non-tariff measures.
- Obtaining a Certificate of Origin allows entrepreneurs, when exporting goods, to benefit from preferential import customs duties in the importing country.
- What is a Quality Certificate and to whom is it issued?
- A Quality Certificate is a document confirming that a product’s quality and safety indicators comply with the requirements of applicable regulatory documents. Quality certificates are issued during the export of products by enterprises that have obtained an approval code for exporting food products to European Union countries.
- For which product defects is the seller liable?
- If the buyer proves that the defects of the product arose before the time of purchase, the seller is liable for such defects.
- Which advertising methods are prohibited?
- The use of unfair, inaccurate, or hidden advertising methods that influence the consumer’s freedom of choice when purchasing goods or concluding transactions is prohibited.
- Which advertisements mislead consumers?
- Advertising is considered misleading if it includes:
• information that may mislead or deceive consumers regarding the origin, production method, suitability for use, quality, weight, price, or other characteristics of the goods;
• unlawful advertising methods that influence the consumer’s freedom of choice during the sale or transaction;
• comparisons of one’s own goods with competitors’ goods in a manner that may mislead consumers, including presenting such comparisons as advertising or informational material;
• providing goods with false indications regarding consumer properties or other essential characteristics (including distinctive signs or trademarks) and advertising them accordingly;
• offering goods that do not comply with established standards or concealing the fact that the goods do not meet their intended purpose or required specifications.
- Advertising is considered misleading if it includes:
- Which advertisements are considered unfair advertising?
- According to Article 6.1 of the Law of the Republic of Azerbaijan “On Advertising”, unfair advertising includes cases where:
• comparisons are made between the advertised goods and goods of other manufacturers performing the same functions, by naming or showing other market participants;
• the honor, dignity, or business reputation of a market competitor is discredited by any means;
• deliberately false advertising about goods is disseminated;
• copyright is used unlawfully;
• the advertised goods are made confusingly similar to goods of other manufacturers or sellers;
• information about the negative impact of the advertised goods on health or the environment is deliberately concealed. - Pursuant to Article 6.2 of the Law “On Advertising”, unfair advertising is prohibited.
- According to Article 6.1 of the Law of the Republic of Azerbaijan “On Advertising”, unfair advertising includes cases where:
- How long must advertising materials be retained?
- Advertising materials (copies), as well as any amendments thereto, and contracts related to the production, placement, and dissemination of advertising must be retained for at least one year from the date of the last dissemination of the advertisement or from the expiration date of the contract by the advertiser, advertising creator, advertising producer, advertising agent, and advertising distributor.
- Source: Law of the Republic of Azerbaijan “On Advertising”, Article 18
- Who carries out construction and installation works for gas supply in areas without territorial planning, and how?
- In areas without territorial planning, design and construction works for gas supply—from construction facilities to the connection point of the gas distribution network—are carried out by a contractor chosen by the consumer or by the gas distributor, at the consumer’s expense, or at the expense of the state in cases of state orders.
- The installation, replacement, and provision of meters for water, gas, and electricity consumption for individual consumers are carried out at the expense of the respective supply companies.
- How are the purchase and sale of water, gas, and electricity and the installation of meters for individual consumers carried out?
- The purchase and sale of water, gas, and electricity are carried out on the basis of contracts concluded directly between suppliers and consumers. During the conclusion of such contracts, third parties—including building owners or management entities (business companies, housing construction cooperatives, homeowners’ associations, etc.)—do not participate and therefore must not be considered parties to relations arising from water, gas, and electricity supply.
- A list of licensed contractors is published on the official website of the State Service for Antimonopoly and Consumer Market Control.
- Source: Law of the Republic of Azerbaijan “On Gas Supply”, Article 13
- Is a protocol required when replacing an electricity meter whose service life has expired?
- There is no requirement for the consumer’s (subscriber’s) participation when replacing an electricity meter.
- Can the water supply of another property owned by a consumer be suspended due to overdue debt at a different address?
- Due to a debt incurred at one address, the water supply to another apartment or facility owned by the consumer—where there is no debt—may be suspended until the debt is fully paid.
- What is a Certificate of Conformity?
- A Certificate of Conformity is a document confirming that certified goods (services, works), processes, management systems, and personnel comply with the requirements established in relevant standards, technical regulations, and other normative legal acts.
- Goods (works, services) for which safety requirements related to the protection of human life, health, property, and the environment are established must undergo mandatory certification in accordance with current legislation. The sale and use of such goods (including imported goods) in the Republic of Azerbaijan are prohibited without a certificate confirming compliance with these requirements.
- According to the Code of Administrative Offenses of the Republic of Azerbaijan, penalties for the production, sale, performance of work, or provision of services involving goods subject to mandatory certification but not certified are as follows:
• individuals: fines from 350 to 500 AZN;
• officials: fines from 1,500 to 2,000 AZN;
• legal entities: fines from 4,000 to 6,000 AZN.
- Which areas are subject to state regulation for ensuring uniformity of measurements?
- According to the Law of the Republic of Azerbaijan “On Ensuring the Uniformity of Measurements”, the areas subject to state regulation for ensuring uniformity of measurements have been defined. These include healthcare, plant protection and quarantine, implementation of agrochemical measures, veterinary services, environmental protection, labor protection, and similar fields. Measurements in these regulated areas must be performed using approved and verified measuring instruments and attested measurement methods.
- Are fines imposed for using unverified or non-approved measuring instruments?
- According to Article 538.1 of the Code of Administrative Offenses of the Republic of Azerbaijan, using measuring instruments that are not type-approved or verified, or performing measurements using non-attested measurement methods in areas subject to state regulation of measurement uniformity, results in fines as follows:
• Officials: 1,000 to 2,000 AZN
• Legal entities: 3,000 to 4,000 AZN
- According to Article 538.1 of the Code of Administrative Offenses of the Republic of Azerbaijan, using measuring instruments that are not type-approved or verified, or performing measurements using non-attested measurement methods in areas subject to state regulation of measurement uniformity, results in fines as follows:
- Which conformity assessment bodies require mandatory accreditation?
- Bodies engaged in conformity assessment activities—including assessing goods (services, works), processes, or personnel whose mandatory conformity assessment is required by technical regulations and other normative legal acts—must be accredited. Similarly, bodies performing measurement uniformity tasks or providing related services in accordance with the Law “On Ensuring the Uniformity of Measurements” must also be accredited.
- Are fines imposed for operating an unaccredited conformity assessment body?
- According to the Code of Administrative Offenses of the Republic of Azerbaijan, operating a conformity assessment body without mandatory accreditation results in fines as follows:
• Officials: 400 AZN
• Legal entities: 2,000 AZN
- According to the Code of Administrative Offenses of the Republic of Azerbaijan, operating a conformity assessment body without mandatory accreditation results in fines as follows:
- How can a Certificate of Conformity be obtained?
- To obtain a Certificate of Conformity, the applicant can apply to any conformity assessment body accredited in accordance with the Law “On Accreditation in the Field of Conformity Assessment”. Information about such accredited bodies can be found on the official website of the Azerbaijan Accreditation Center under the State Service for Antimonopoly and Consumer Market Control.
- What documents must be submitted for advertising medicines released without a prescription?
- For advertising of non-prescription medicines, the advertiser must provide the advertising producer and distributor with the following documents:
• Certificate issued by an appropriately accredited conformity assessment body, upon the advertiser’s request;
• Registration certificate confirming state registration of the medicine;
• Instructions for use of the medicine, or, if instructions are not provided, relevant documentation containing such information;
• Certificate of origin;
• Copies of documents confirming the results of studies cited in the advertisement, if applicable.
- For advertising of non-prescription medicines, the advertiser must provide the advertising producer and distributor with the following documents:
- Which goods cannot be exchanged or returned?
- In retail outlets within Azerbaijan, the following goods cannot be exchanged or returned:
• Gold and gold products;
• Products made of precious and semi-precious metals and stones;
• All types of fabrics and certain goods sold by length or measurement (ribbons, towels, trims), except in cases of manufacturing defects;
• Perfumery and cosmetic products;
• Underwear for preschool-age children and newborns;
• Household chemical products;
• Personal hygiene items (toothbrushes, combs, hair rollers, etc.);
• Children’s toys;
• Used socks and underwear for men, women, and children without tags, except in cases of manufacturing defects;
• Plastic products intended for food use;
• Paid and removed food products (within their shelf life).
- In retail outlets within Azerbaijan, the following goods cannot be exchanged or returned:
- What is a technical regulation?
- A technical regulation is a technical-normative legal act establishing mandatory requirements for goods, related processes, and production methods. Technical regulations specify mandatory requirements aimed at protecting human life and health, the environment, and property. They may also include requirements related to terminology, symbols, packaging, labeling, operation, storage, transportation, sale, disposal, and utilization of goods, except for requirements concerning product design and appearance.
- What rights does a consumer have?
- A consumer has the right to:
• Freely choose the product (work, service) and its manufacturer, provider, or seller;
• Demand that the purchased product or service be of proper quality;
• Ensure the purchased product (work or service) is safe;
• Receive necessary and accurate information about the product (work, service);
• Claim compensation for damages caused by the product (work, service);
• Protect their rights and legal interests through competent state authorities, the courts, or by joining public organizations.
- A consumer has the right to:
- What is the shelf life of a product and how is it calculated?
- According to the Civil Code of the Republic of Azerbaijan, the shelf life is the period that limits a product’s suitability for use for its intended purpose. The seller must deliver a product with an established shelf life to the buyer in such a way that the buyer can use it for its intended purpose until the shelf life expires.
- The shelf life of a product is determined either by a period of time calculated from the date of manufacture that indicates its suitability for use, or by the specific date on which the product’s suitability expires.
- What is the proper documentation procedure when defective goods are submitted for repair?
- When defective goods are submitted for repair, the documentation may be prepared in a simple written form. In such cases, the customer must be provided with a service slip, cash receipt, or receipt. The issued documents must include the date the order was accepted, the cost of the work to be performed, and other relevant details.
- If the terms of the contract or document prepared at the time the order is accepted restrict consumer rights as provided for in the Civil Code of the Republic of Azerbaijan or the Law of the Republic of Azerbaijan On the Protection of Consumer Rights, such a contract or document shall be considered invalid.
- If the contract (receipt) or other document confirming the repair order is lost, the completed work (or service rendered) shall be handed over to the consumer based on their written application and an identity document.
- What rights does a consumer have if the repair process takes an excessively long time?
- If the service provider fails to begin the work or provide the service within the agreed time, or if delays indicate that the work will not be completed on time, the consumer has the right to withdraw from the contract and claim compensation for any losses incurred.
- Is it necessary to conclude a contract when purchasing goods, and in what form is it done?
- When purchasing goods, it is necessary to conclude a sales contract. Under such contracts, the seller is obliged to transfer the goods into the ownership of the buyer, while the buyer is obliged to accept the goods and pay the agreed monetary amount in return.
- Sales contracts may be concluded either orally or in writing. When purchasing everyday consumer goods or low-value items, there is no need to conclude a written contract. A contract is considered concluded once the parties have reached agreement on all essential terms in the required form. In order to prevent any potential disputes in the future, the consumer should request a cash receipt for the amount paid.
- How is the connection to the fixed (wired) telecommunications network carried out?
- To connect to the network, an application may be submitted to the operator by post or electronically. The operator must inform the applicant of the technical feasibility of the connection within no later than three working days. A connection agreement is concluded between the operator and the applicant.
- The connection agreement must include the information specified in the annex to the “Conditions Required for the Sale and Use of Communication Services by Communication Enterprises (Operators)”, approved by the relevant Resolution of the Cabinet of Ministers of the Republic of Azerbaijan. In addition, a copy of the identity document of the individual (or, if concluded by a legal entity, its authorized representative) must be attached to the agreement.
- The connection agreement is prepared in two copies: one copy is provided to the subscriber, and the other is retained by the operator.
- How are electricity payments settled with household consumers?
- Settlements for electricity consumption with household consumers are carried out, regardless of the installation location, solely based on the electricity meter readings and the tariff established for this consumer group. Electricity losses (technological consumption) are not taken into account in settlements with household consumers, and no payment is charged for them.
- How should water consumption charges be calculated if the consumer does not allow inspection of the water meter?
- If a consumer fails to provide access for a representative of the water supply and sewerage utility to inspect the water meter, the volume of water consumed is determined by calculation based on the consumer’s average consumption rate over the previous 12-month period (or the actual consumption period if it is less than 12 months).
- The calculations based on the average consumption rate for the previous 12 months are later adjusted according to the actual meter readings once they are determined. As a result of this adjustment, any overpaid amount is either credited to subsequent billing periods or refunded to the consumer.
- What can be done if no warranty was provided by the seller or manufacturer and the purchased goods turn out to be defective?
- A warranty period is the period during which the manufacturer or seller guarantees the normal use of a product. If no warranty period has been established by the seller or manufacturer, the consumer has the right to submit claims regarding detected defects to the seller (manufacturer) within two years from the date of purchase, or within a longer period if such a period is specified in the contract.
- Can I apply to a court if my consumer rights have been violated?
- The protection of consumer rights provided for by law is carried out by the courts. In addition to satisfying the consumer’s claims, the court also resolves the issue of compensation for moral (non-pecuniary) damage suffered by the consumer.
It should be noted that consumers are exempt from paying state duties when filing lawsuits related to violations of their consumer rights.
- The protection of consumer rights provided for by law is carried out by the courts. In addition to satisfying the consumer’s claims, the court also resolves the issue of compensation for moral (non-pecuniary) damage suffered by the consumer.
- What is considered defective goods?
- Under current legislation, defective goods are goods that do not comply with the requirements of regulatory documents, contract terms, information provided by the seller or contractor about the goods, their usual purpose, or the purpose communicated by the consumer to the seller. This also includes non-compliance with descriptions or samples when goods are sold based on a description or sample.
- A material defect is a defect that makes it impossible or unacceptable to use the goods for their intended purpose, cannot be eliminated for the consumer, requires disproportionate costs or time to remedy, fundamentally alters the goods (work or service) compared to what was agreed in the contract, or reappears after being remedied.
- If a defect or material defect is discovered, the consumer has the right to submit the claims provided for by law to the seller (manufacturer).
- What documents must the seller provide to the consumer?
- Unless otherwise stipulated in the sales contract, the seller is obliged, at the time of transferring the goods to the buyer, to also provide accessories and documents related to the goods as required by legislation or the contract (such as a technical passport, quality certificate, user manual, etc.).
- The seller assumes responsibility for ensuring that the quality of the goods meets the standards specified in technical documentation and standards. The seller (manufacturer, contractor) must provide the consumer with goods whose quality complies with regulatory documents, contract terms, and the information provided by the manufacturer (contractor) about the goods (work or service).
- At the consumer’s request, the seller (contractor) must provide documents confirming the origin, quality, and safety of the goods.
- Is it possible to exchange or return products purchased electronically (online)?
- The rights of consumers who purchase goods electronically (online) are equal to those of consumers who purchase goods through traditional means. No restrictions may be imposed on consumer rights when goods are purchased online. Therefore, products purchased electronically may be exchanged or returned in cases and according to procedures established by law.
- What is monopolistic activity?
- Monopolistic activity is the conduct of business entities, executive authorities, or administrative bodies aimed at preventing, restricting, or eliminating competition. Such activities may include price manipulation by market participants, refusal to sell or purchase goods in order to discriminate between business entities where there are no alternative sellers or buyers, creation of closed sales networks, discriminatory practices in contract conclusion, and other actions prohibited by law.
- What is a dominant position?
- A dominant position is an exclusive position of a business entity that allows it to exert decisive influence on competition due to the superiority of its economic potential. Business entities holding more than 35% of the relevant product market share, or exceeding other thresholds established by legislation, are considered to hold a dominant position.
- Which authority approves the type of measuring instruments?
- The approval of the type of standard samples or measuring instruments is carried out by the State Service for Antimonopoly and Consumer Market Control under the Ministry of Economy of the Republic of Azerbaijan, based on applications from state bodies, individuals, and legal entities.
- What is a standard?
- A standard is a normative document intended for repeated and common use that establishes rules, norms, and recommendations relating to goods (works, services), processes associated with them (including management systems), and production methods, the application of which is voluntary.
- In what cases can consumers exchange or return goods?
- First, if a consumer discovers a defect or falsification in the purchased goods during the warranty period established by legislation or the contract, they have the right to demand that the seller or manufacturer replace the goods with other goods of proper quality. In such cases, the seller (contractor) is obliged to take back the goods of inadequate quality and fulfill one of the consumer’s stated demands.
- Second, the seller (contractor) must provide the consumer with necessary and accurate information about the goods (works, services), including the price, consumer properties (for food products — also composition, shelf life, energy value, and the presence of substances harmful to health in accordance with food safety regulations), terms of acquisition, warranty obligations, procedures for submitting claims, as well as rules and methods for use, storage, and safe operation.
If the failure to provide complete information results in the consumer purchasing goods (works, services) that do not have the required properties, the consumer has the right to return such goods. - Third, if non-food goods of proper quality do not suit the consumer in terms of shape, size, style, color, or for other reasons cannot be used for their intended purpose, the consumer has the right to exchange them for suitable goods within 14 days. If no suitable goods are available for exchange, the consumer has the right to return the goods.
- How can entrepreneurs participate in electronic procurement?
- Entrepreneurs may register on the Unified Internet Portal of Public Procurement (etender.gov.az) using a simple or electronic signature. After paying the participation fee in real time for any tender corresponding to their field of activity, they obtain the main set of tender conditions.
- They may then participate in electronic procurement by submitting the required relevant documents to the procuring entity through the portal.
- In what cases does the procuring entity decide to reject a price proposal?
- The procuring entity adopts a reasoned decision to reject a price proposal if the proposal submitted by an entrepreneur does not comply with the requirements of the tender documentation, exceeds the estimated price, if the entrepreneur refuses to correct calculation errors, or if cases of fraud or conflict of interest are identified.
- Can a price proposal be rejected if it is abnormally low?
- If the procuring entity determines that the price of a proposal submitted by an entrepreneur is 20 percent or more below the estimated price, it shall request detailed written explanations from the entrepreneur whose ability to perform the procurement contract appears questionable.
- If doubts remain after reviewing the explanations, the procuring entity may decide to reject such proposals. This decision must be approved by the State Service for Antimonopoly and Consumer Market Control under the Ministry of Economy of the Republic of Azerbaijan.
- In what cases may the procuring entity reject all proposals?
- The procuring entity may decide to reject all proposals if, during the tender procedures, collusion aimed at artificially increasing prices among bidders is identified, if the tender proposals do not comply with the main terms and conditions of the tender, or if financing of the subject matter of the tender has been suspended.
- This decision must be approved by the State Service for Antimonopoly and Consumer Market Control under the Ministry of Economy of the Republic of Azerbaijan.
- In what cases is the tender bid security returned?
- The tender bid security shall be returned in the following cases:
1. Upon expiration of the validity period of the tender bids;
2. If the tender procedures are cancelled;
3. To bidders who did not place among the top three, after a decision on the tender results is adopted;
4. To bidders who did not agree to extend the validity period of their tender bids, after the original validity period expires;
5. To the winning bidder, after the procurement contract is signed and performance security is provided;
6. To bidders who placed second and third, after the procurement contract concluded with the winning bidder enters into force.
- The tender bid security shall be returned in the following cases:
- What is tender bid security and for how long must it be valid?
- Tender bid security is a guarantee provided to secure the obligations undertaken by the bidder towards the procuring entity under the tender bid. The amount of the tender bid security must be 1 percent of the total bid price and its validity period must exceed the bid validity period by 30 banking days.
- What should an entrepreneur do if questions arise regarding the main terms and conditions of the tender?
- Entrepreneurs may submit a request for clarification of the tender documentation to the tender commission no later than four banking days before the deadline for submission of bids.
- The tender commission must respond to such requests no later than two banking days before the bid submission deadline. The response must be sent to all bidders who obtained the tender documentation, without indicating the identity of the requesting party.
- What should entrepreneurs do if they are dissatisfied with the procurement procedure or its results?
- Before the procurement contract enters into force, entrepreneurs may first submit a written complaint to the head of the procuring entity. The complaint must be submitted within 15 banking days from the moment the bidder became aware or should have become aware of the grounds for the complaint.
- The head of the procuring entity must issue a written decision within 20 banking days from the date of receipt of the complaint, and within 10 banking days in the case of electronic procurement. The decision must state the reasons for it, and if the complaint is fully or partially upheld, it must specify the measures to be taken to remedy the situation.