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State Political Administration had to coordinate joint activities of these or-
ganizations [13, p.16]. The document stated that receiving and inspection of
ships, railway train and land road transport from abroad should be carried
out by employees of the customs and political departments. Verification of
the identity of passengers coming from abroad and documentation were in-
cluded to the competence of the employees of political department.
Things and documents of counter-revolutionary nature revealed at the
time of inspection carried out without interfering with the work of Customs
inspectors that passengers tried to pass illegally were handed to customs-
houses. Customs inspection of passengers’ luggage was carried out by cus-
toms officials without the intervention of the political department. If the
smuggled goods were found among the luggage during the customs inspec-
tion, the corresponding act was drawn and the smuggled goods were handed
to the employees of the political department [14, pp. 180-184].
In the 1920s, the government of Moscow paid special attention to the
traditional Baku trade fairs serving to Russia's economic interests. The main
goal of the Soviet state in the organization of these fairs was in the process
of restoring industry to provide the interior regions with necessary consumer
goods, to revive the shattered trade and economic relations with Western
European countries through Eastern countries, first of all, through Iran. In
contrast to Russia's Nizhny Novgorod Fair, the Fair held in Baku was con-
sidered to be more suitable for Iranian merchants with medium and little
capital. Reduce of transportation tariffs by Volga State River Shipping
Company, realizing the transportation of goods from the Industrial centers
of the RSFSR by water had been increasing the number of the participants
of foreign trade activities involved in fair year by year [15, pp.55-59].
Some forces within the Iranian authorities, spreading false news on
the confiscation of the goods of Iranian merchants in the Baku fair, tried to
prevent the fair. In order to prevent this, the Baku branch of the RSFSR
PFTC sending telegrams to Iranian newspapers tried to avoid the boycott
campaign. On October 26, 1922, on the radio, on behalf of N.Narimanov,
the Chairman of the NCS of SCSFR the following information was given to
Enzeli and Tehran: “We are obliged to affirm decidedly that the Federative
Republics stand firmly on the economic co-operation platform with the
Eastern nations, especially with Iran based on close historical connection of
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both sides. We can confirm with certainty that goods of Iranian merchants
have not been and will not have been confiscated in the Azerbaijan Soviet
Socialist Republic, all their privileges and concession associated with Baku
fair has kept full validity.” The declaration announced on the radio pre-
vented boycott of the fair [16, pp.168-170]. Companies and societies of the
RSFSR engaged in commercial operations with Iran without the consent of
the relevant government agencies and the government of Azerbaijan Soviet
Socialist Republic received all kind of support from the center for export of
local strategic raw materials and finished products. Allowance (permission),
from May 1, 1924, given to the Russian-Iranian trade company (Rupeto) for
import-export operations without license and customs duties proves it. It is
interestingly, that Rupeto had entered into the agreement with “Neftsin-
diqat” on the organization of sale of Baku oil in Northern Iran.
The Soviet-Iranian import-export company “East”, created on Febru-
ary 11, 1924, at the request of the Department of State Lands and Public Af-
fairs was exchanging with Iran agricultural techniques with cotton, rice, and
fruit. Each of the commercial companies created in 1923-1924 years “Rus-
perssakhar”, “Perskhlopok”, “Persshelk”, “Mansugate-Irano-Rus”, using the
territory of Azerbaijan implemented wide commercial operations. In con-
trast to the Convention of October 1927, the Soviet-Iranian Customs Con-
vention signed in May 1928, provided independence of Iran in the field of
customs affairs. Parties had pledged not to make any changes in the customs
duties until May 10, 1936, [17, pp. 54-55, 81].
One of the main strategic objectives of the Soviet state in developing
foreign trade was to raise the customs revenues. However, both during the
period of the Russian Empire and during the existence of the USSR the
main part of the customs revenues from the country's export potential and
customs activities in the borders was directed to union budget. It is esti-
mated that, if in 1922, the customs revenue was 10 percent of all tax reve-
nues, in 1923, this figure had risen to 35 percent. In January 1924, at the 2nd
All-Union conference of the USSR Commissariat of Foreign Trade was
stated that monopolization of the foreign trade had to provide high state
revenues. Information of Soviet statistics relating to those years confirmed
this: in 1925/26 years customs revenues increased 2.2 times in comparison
with 1923/24 years, in other words, it rose from 67.4 million gold rubles to
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150.1 million gold rubles [18, p.85].
On December 12, 1924, the Central Executive Committee of the
USSR approved the Customs Code of the USSR. After that, all the authority
in carrying out the customs operations in the territory of the USSR was
given to the General Customs Office which was attached to the People's
Commissariat of Foreign Trade. The Customs Code defined rights and du-
ties of customs-houses. The “centralization” policy of Soviet customs sys-
tem was consistently continued in the following years. For this purpose, on
the order of the USSR People’s Commissariat of Foreign Trade on Decem-
ber 22, 1924 was abolished the South Caucasus Customs Department and
replaced by the South Caucasus branch of the General Customs Department
of the USSR People’s Commissariat of Foreign Trade.
From January 1, 1925, the South Caucasus customs inspection, includ-
ing the Azerbaijan district customs inspection was abolished [19, p. 21]. In
the 20s, the establishment of the state monopoly in soviet foreign trade rela-
tions and subjection of customs area to this policy, along with being contra-
dictory with the economic interests of the republics, had a negative impact
on the level of domestic and foreign trade. It was more clearly seen in the
case of Azerbaijan. In the report of the Azerbaijan Soviet Socialist Republic
People’s Commissariat’s Soviet to the IV Congress of Soviets held in 1925,
along with all sectors of the national economy was noted the state of the
domestic and foreign trade as well. In the report was noted that 138 state,
317 cooperative, 12036 private commercial enterprises (12491 in total) were
operating in the republic. In 1924, 45 percent of the trade turnover in the
amount of 80.2 million fell to the state’s share, 6 percent to cooperative and
49 percent to private trade. Although, in the same year, was registered the
import of 346375 tons of different types of cargo, export of 145819 tons of
cargo across the border, the total volume of trade turnover was 6 times less
of the level of imports and 5 times less of exports than in 1913 in all cus-
toms-houses in the territory of the Republic (including Nakhchivan) [20,
pp.7-8]. The above-mentioned, prove that since the 20s of the twentieth cen-
tury, the emerging Soviet foreign trade policy and customs system was
completely contrary to the national interests of the Azerbaijan people.
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