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Yes, it does.

Specifications and Features: Century Arms International N-PAP Semi Automatic Rifle 7.62x39mm 16.25" Barrel 10 Rounds (Accepts single stack magazines only) Synthetic Sport Stock Black New Condition Accessory rail built into the receiver Hammer forged barrel 1:10 Twist 37" Overall Length 8 lbs

Sean C. in the reviews also confirms it has a side rail.

This rifle does not have a side rail for scope mount. It has a top mount accessory rail for scope/accessories. --------------- http://www.armslist.com/posts/1823603/raleigh-north-carolina-rifles-for-sale--new-zastava-n-pap-hi-cap-semi-auto-rifle-with-thumbhole-stock---polymer-handguard--caliber-7-62x39mm