Turkmenistan - Trade BarriersTurkmenistan - Trade Barriers
Slow, bureaucratic customs procedures seriously inhibit trade. When the basis of the consignment is a contract but not a paid invoice, Turkmenistan requires that export and import contracts be registered at the State Commodity and Raw Materials Exchange (SCRME), the only exchange in the country. The contract registration procedure at SCRME includes a justification of prices. The procedure applies not only to contracts signed at the SCRME, but also to contracts signed between third parties. The contract’s feasibility is also scrutinized by the Supreme Chamber of Control. All import contracts must be registered before goods are delivered to Turkmenistan. Contract registration is a cumbersome process, involving approval from various agencies and ministries. Investment projects, including civil construction projects, are required to be registered at the Ministry of Finance and Economy. Turkmenistan has not acceded to the New York Convention on International Arbitration. As a result, a foreign commercial company with a commercial dispute has no recourse to an international dispute resolution body. Turkmenistan’s restrictive visa regime and taxation policy are also difficult issues for companies to overcome.