How to Export to Armenia
LOGISTICS OF EXPORTING TO EURASIA SERIES
Customs Clearance In Armenia
By George Isayan, BISNIS Representative in Yerevan, Armenia March 2004
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INTERNATIONAL COPYRIGHT U.S. DEPARTMENT OF COMMERCE, 2004. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES
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***NOTE: This report should be used for general reference purpose only. As customs legislation and regulations are constantly changing, it is advised that exporters consult with customs officials from the country of importation to obtain accurate and current information that would pertain to their specific transaction***
TRADE STATISTICS
Russia, Belgium, and the U.S. are the largest trade partners of Armenia. The United States is the third largest trade partner of Armenia, with a total trade of USD 158.3 million, including USD 101.7 million of U.S. exports to Armenia, and USD 56.6 million of U.S. imports from Armenia.
ArmeniaÌs Major Trade Partners, by Country, 2003
Millions of USD
Country
Export
Import
Russia
95.6
208.8
Belgium
123.8
129.7
USA
56.6
101.7
UK
39.8
57.1
Iran
22.2
66.8
Germany
44.3
43.8
UAE
16.9
57.7
Switzerland
31.6
41.6
Italy
18.9
39.5
Turkmenistan
16.0
38.3
Georgia
7.4
44.08
Turkey
1.03
38.1
Source: Armenian National Statistical Service
Tariffs are in ad valorem terms and levied on transaction price plus transportation costs to the customs point. The import tariff schedule has rates of either 0 or 10 percent, plus a 20 percent value added tax (VAT). The tariff is levied on items consisting mainly of consumer goods and luxury items. Excise tax is collected for specific products, including alcohol, tobacco, and fuel. Other taxes collected at the customs point, including fuel fixed tax, road tax, and environmental tax, are a significantly smaller percentage.
CUSTOMS CLEARANCE
All goods imported by legal entities to Armenia must be declared to customs within 10 days after their arrival. Customs clearance is to be made at the regional customs office covering the territory where the importer is registered. The importer must be an Armenian legal entity - a company or its branch registered in Armenia, an official representative located and registered in Armenia, or a permanent resident of Armenia. To conduct customs clearances, an Armenian legal entity must be registered at the relevant customs office. This procedure, referred to as opening a customs file, requires that the following documents be submitted:
? a written registration request to a customs house for performing export/import activities with a company statement
? a copy of the organizationÌs by-laws
? certification of the company's state registration in Armenia
? a copy of the 8-character tax identification number (TIN) document provided to the organization during registration by local tax inspectorate
? a bank notice on the organizationÌs account (s)
? in case of an intermediary, an authorization document for that person
Procedure
According to article 128 of the customs code of Armenia, all goods and vehicles imported through the customs border of Armenia are subject to declaration. Goods and vehicles imported by organizations must be declared in the regional customs house where that particular organization operates, with the exception of shipments processed through Yerevan "Zvartnots" international airport and TIR customs houses. Goods and vehicles imported by air transportation are declared in "Zvartnots" customs house in Yerevan. Goods and vehicles with TIR carnets imported by legal persons are declared in TIR customs houses.
For organizations crossing the customs border of Armenia, cargo bills are completed at the customs border point. Cargo bills specify name of the regional customs house where the freight is to be declared, the latest date for filling the declaration without penalties, document titles and numbers submitted at customs points, commodity name, number of cargo units, etc. Organizations importing goods and vehicles should complete a declaration and final customs processing in the appropriate regional customs house within 10 days.
Import documentation
The following main documents are required by customs for clearance:
- shipping documents (originals). Depending on transportation means, importers must submit the air waybill, railway bill, bill of lading, or CMR with all relevant data, such as registration number of vehicles, cargo description, and contract number. In addition, the customs department requires importers to complete a shipping form. This document includes the driver's name, vehicle registration number, and final destination (i.e. the customs terminal where the cargo must be cleared). The shipping form should be submitted to customs within ten days after the goods enter the country.
- customs cargo declaration.
- commercial invoice (original). It should include such information as terms of delivery, description and quantity of goods, country of origin, price per item and total value of goods, and transportation cost.
- power of attorney for the person or company conducting the customs clearance. This document can also be submitted by brokers or agents acting on behalf of the importer. The document can be issued for a specified quantity of imported goods or for a certain period of time, without limitation on the quantity of goods.
The following documents may also be requested by customs:
a) depending on the type of goods:
? a proper license issued by the government of Armenia
? approval given by relevant Armenian ministries
? certificate of origin
? certificate of quality/safety
b) depending on the nature of the transaction:
Based on the submitted documents, customs issues a customs declaration form (CDF). The declaration process is automated and is done through the computerized processing system. Before declaration, the importer has the right to check the arrived
shipment, see the goods or vehicles, measure them, and take samples for laboratory analysis.
The importer fills in the declaration, signs and stamps it with the seal of the organization. The declaration is registered in the automated system, and then submitted to a customs valuation inspector. Customs authorities check the accuracy of the declaration, as well as attached documents, and the accuracy of customs valuation. After the valuation inspector signs and stamps the declaration, it becomes a legal document. The importer remains responsible for any inaccurate information in it, however. After submission of the declaration, the automated system classifies passage of the shipment: red passage indicates that the declared shipment is subject to detailed inspection; yellow passage, that the declared shipment is subject to random inspection; green passage, that the declared shipment is released without inspection. The importer makes payment of customs
duties and fees as calculated in the declaration. Customs issues an assignment of transfer of customs collections to the state budget and a receipt.
Customs regimes
Temporary export/import
The Customs Code of Armenia allows organizations to export and import goods under temporary export and temporary import regimes. Goods temporarily exported or imported are not subject to any customs payments or non-tariff regulations except the customs fee. Temporary export or import may be made for no longer than one year, except for the goods of foreign diplomatic agencies and consulates, international
organizations, and representative offices of foreign states working in cooperation with international organizations.
Temporary export or import of goods in HS 84-89 classification may be extended by the Armenian government for maximum 4 years. These include nuclear reactors, boilers, machinery etc.; electric machinery etc; sound equip; TV equip; railway or tramway stock
etc; traffic signal equip; vehicles, except railway or tramway, and parts etc; aircraft, spacecraft, and parts thereof; and ships, boats and floating structures.
Goods must be declared within 10 days after the period expires.
Transit
Transit shipment of goods through Armenia is regulated by articles 27 and 28 of the Customs Code and by government Decree n. 887. No customs payments other
than customs fees or non-tariff regulation are levied in case of transit. Goods should be transported within 10 days from entry customs point to the exit customs point. Goods cannot be changed during transit except for depreciation caused by transportation of goods during transit.
Customs waivers
Customs duty is waived for:
- transit
- temporary import
- import to the customs warehouse, or free customs warehouse
- re-import regime
- currency, foreign currency and securities
- imports of humanitarian assistance within
Humanitarian aid projects.
- certain products of capital investment on the part of commercial organizations. Such a list must be approved by the Armenian government. This waiver is valid within 3 years after importing the goods.
Value added tax is waived for:
- personal belongings
- import of goods that are the property of foreign organizations used for processing in Armenia and are contractually intended for re-export within 1 year supported by corresponding documents
- donor blood, pharmaceuticals, and medical equipment;
- import of goods by foreign countries, international, diplomatic, inter-governmental organizations, NGOs, religious and similar organizations, and individual benefactors as part of humanitarian assistance within humanitarian aid projects, as well as goods imported by VAT payers in the Republic of Armenia directly related to the implementation of such projects.
Customs payments
According to the Customs Code of Armenia, customs collects the following payments for importing goods and vehicles:
- customs fees: depending on the amount of service provided by the customs, i.e. valuation, inspection, provision of customs forms, temporary import, vehicle
registration certificate, customs will charge customs fees, including USD 7-15 fixed fee, plus USD 2 for shipments under 1 ton, or USD 0.6 for each ton of shipments above 1 ton. Customs may escort goods through the territory of Armenia and will charge USD 20
per 100 km. An extra fee will be charged for storing products in a customs warehouse.
- customs duties: for imported products tariffs are in Ad Valorem terms and levied on transaction price plus transportations costs to the customs point. The import tariff schedule has rates of either 0 or 10 percent.
List of products with corresponding customs duties is available at the customs service.
- value added tax: currently 20 percent, collected on the amount of valuation plus customs duty.
- excise tax: collected for importing alcoholic drinks;
Tobacco; and crude oil, gas and other gas-like hydrocarbons, except natural gas.
- fixed tax: collected for importing fuel, including diesel fuel and gasoline. The rate of the fixed tax is USD 65 per ton.
- road tax: collected from owners of imported vehicles
- environmental payments: collected from vehicles and/for importing hazardous materials.
Prohibited Import
According to Armenian government Decision n. 902, dated 31 December 2000, goods prohibited from import into Armenia are:
a) Materials and products with pornographic content.
b) All kinds of wastes, except those permitted by the Ministry of Trade and Economic Development and the Ministry of Environmental Protection, as well as products with expired dates.
c) Live animals and plants, carriers for untreatable infections, and objects of historical, cultural and archeological value and significance.
d) Products from countries that are not signatories of the Vienna Convention "On protection of ozone layer" and the Montreal protocol "On substances harming the ozone layer," as well as gasoline with more than 0.013 G/l lead (commodity code per EEA cc 271000340 and 271000360).
Restricted Import
The following items may be imported only with special permission or certification.
* military weapon and parts thereof, as well as items under code hs 8710 (motorized tanks and other armored fighting vehicles and parts thereof) and HS 9306 (bombs, grenades, etc; cartridges and other ammunition and parts thereof) (with exception of items under 9306 29 100 commodity code), medicine and narcotic drugs subject to control within Armenia. Import of nuclear and radioactive materials to Armenia must be implemented by a special order of the Armenian government. These are regulated by government decision N. 902, dated 31 December 2000.
* products requiring certification by Armstatestandard by government decision N. 239 as of 12 May 2000.
* substances for the protection of plants. Permission by the Ministry of Agriculture is required by Government decision N. 742 dated 10 August 2001.
* wild plants. Permission by the Ministry of Environmental Protection is required by Government decision N. 1173- N, dated 18 July 2002.
* wild animals. Permission by the Ministry of Environmental Protection is required by government decision N. 1174- N, dated 18 July 2002.
* pharmaceutical products. Certificate of the Ministry of Health is required by government decision N. 581, Dated 20 September 2000.
* radio-electrical equipment and high-frequency equipment with frequencies lower than 400 Gh and higher than 9 Kh by government decision N. 694, 20 November
* 1999.
* high-precision measurement instruments.
* Certification by Armstatestandard is required by Government decision N. 26, dated 20 January 1998.
Membership In Free Trade Agreements
Armenia has Free Trade Agreements with all CIS countries except for Azerbaijan.
Armenia is a member of WTO since February 5, 2003.
Applicable Legislation
a) Customs Code of the Republic of Armenia, "State Official Bulletin" N. 19, 2000.
b) Law "List of Commodities with 0 percent customs duty tariff and not subject to excise tax imported by legal entities and physical persons, the VAT from which is not calculated and collected by customs entities," "State Official Bulletin" N. 20, 2001.
c) Law on making amendments and additions in the law "List of commodities with 0 percent customs duty tariff and not subject to excise tax imported by legal entities and physical persons, the vat from which is not calculated and collected by customs entities," "State Official Bulletin" N. 27, 2002.
d) Law "On Excise Tax," "State Official Bulletin" N. 17, 2000.
e) Law "on value added tax," "State Official Bulletin"
f) N. 14, 1997.
g) Law "On road payments," "State Official Bulletin"
h) N. 7, 1997.
i) Law "On nature preservation and nature utilization payments."
j) Law "On presumptive tax for tobacco products,"
k) "State Official Bulletin" N. 6, 2000.
l) Law "On presumptive tax for the Republic of Armenia imported diesel fuels and petroleum," "State Official Bulletin" N. 30, 1997.
m) Law "On export and import of artifacts," "State Official Bulletin" N. 13, 1994.
n) Armenian President's decree of 3 July, 2000 "On approving the agreement "on Commonwealth of Independent States external economic activity harmonized commodity
o) code list," "state official bulletin" n. 15, 2000.
p) Law "On making additions to the customs code," "State Official Bulletin" N. 33, 2000.
q) Law "On licensing," "State Official Bulletin", 2001.
r) Law "On making amendments and additions in the RA Customs Code" AL-328, "State Official Bulletin" N. 18, 2002.
s) Law "On making additions in the Customs Code" AL- 352-N, "State Official Bulletin" N. 22, 2002.
t) Law "On customs service," "State Official
u) Bulletin" N. 32, 2002.
v) Law "On making additions in the Customs Code" AL-
w) 417-N, "State Official Bulletin" 2002.
x) Law "On making amendments and additions in the
y) Customs code" AL-412-N, "State Official Bulletin" 2002.
PORTS OF ENTRY
Armenian customs service has the following structure:
? State Customs Committee under the Government of Armenia
? Regional Customs Houses
? Customs points
Contact Information:
State Customs Committee under the Government of Armenia
Working hours: 9:00am-6:00pm daily except for Saturday and Sunday
3 Movses Khorenatsi Street
Yerevan-15
Armenia
Tel: (374-1) 536-051
Fax: (374-1) 538-035
E-mail: mpk@customs.am
Website: www.customs.am
REGIONAL CUSTOMS
Working hours: 9am-6pm
ARARAT REGIONAL CUSTOMS HOUSE
10 Isakov Avenue
Yerevan-82
Tel: (374-1) 527-611
Fax: (374-1) 541-090
GUGARK REGIONAL CUSTOMS HOUSE
44 Moskovyan street
Vanadzor-377200
Lori province
Tel: (374-1) 288-637
Fax: (374-1) 537-125
SHIRAK REGIONAL CUSTOMS HOUSE
21 Khorenatsi street
Gyumri-377500
Shirak province
Tel: (374-1) 285-614
Fax: (374-1) 537-125
SYUNIK REGIONAL CUSTOMS HOUSE
Sisian-Yerevan highway sixth kilometer
Sisian-378010
Syunik province
Tel: (374-1) 285-826
Fax: (374-1) 537-125
"ZVARTNOTS" CUSTOMS HOUSE OF YEREVAN
Zvartnots international airport, Yerevan
Tel: (374-1) 593-566
Fax: (374-1) 537-125
TIR REGIONAL CUSTOMS HOUSE
10 Isakov Avenue
Yerevan-82
Tel: (374-1) 568-474
Customs Points
Working hours: 24 hours
AKHURIK CUSTOMS POINT (currently not functioning)
Akhurik village, Shirak province
Armenian-Turkish border
AYRUM CUSTOMS POINT
"Airum" railroad station, Tavush province
Armenian-Georgian border, responsible for railroad transportation only
Tel: (374-66) 21-980
Fax: (374-1) 537-125
BAGRATASHEN CUSTOMS POINT
Bagratashen village, Tavush province, Armenian-
Georgian border
Tel: (374-1) 284-571
Fax: (374-1) 537-125
BAVRA CUSTOMS POINT
Bavra village, Shirak province
Armenian-Georgian border
Tel: (374-1) 285-829
Fax: (374-1) 537-125
GOGAVAN CUSTOMS POINT
Town of Tashir, Lori province
Armenian-Georgian border
Tel: (374-54) 21-984
Fax: (374-1) 537-125
JILIZIA CUSTOMS POINT
Jilizia village, Tavush province
Armenian-Georgian border
Tel: (374-66) 21-980
Fax: (374-1) 537-125
MARGARA CUSTOMS POINT (currently not functioning)
Margara village, Armavir province
Armenian-Turkish border
MEGHRI CUSTOMS POINT
Town of Agarak, Syunik province,
Armenian-Iranian border
Tel: (374-1) 285-452
Fax: (374-1) 537-125
NOR HAJN CUSTOMS POINT
Nor Hajn village, Kotayk province,
Serves diamond-cutting companies located in Nor Hajn
Village
Tel: (374-1) 527-611
Fax: (374-1) 541-090
PRIVOLNOYE CUSTOMS POINT
Town of Tashir, Lori province
Armenian-Georgian border
Tel: (374-54) 21-984
Fax: (374-1) 537-125
SHIRAK AIRPORT CUSTOMS POINT
"Shirak" airport,
City of Gyumri, Shirak province
Tel: (374-1) 285-829
Fax: (374-1) 537-125
VEHICLE CUSTOMS PROCESSING POINT
10 Isakov Avenue
Yerevan-82
Tel: (374-1) 527-611
Fax: (374-1) 541-090
Customs Warehouses
DZIUNIK REFRIGERATOR LTD
9 Arshakuniats st., Yerevan
Tel: (374-1) 58 51 27
NEW COMPANY LTD
Village Aringe, Kotayk province
Tel: (374-1) 28 53 48, 23 11 91
YEREVAN FLOUR MILL OJSC
2 Nar-Dos st., Yerevan
Tel: (374-1) 52 75 39
TRANS-SERVICE LTD
43 Shirak st., Yerevan
Tel: (374-1) 42 00 01, 42 22 01
AMGO-TRANSSCERVICE LTD
10 Teyshebani st., Yerevan
Tel: (374-1) 47 35 40, 47 42 32
HAIK LTD
11 Arin Berd, Yerevan
Tel: (374-1) 47 24 66, 47 00 32
URARTU MEAT FACTORY OF YEREVAN OJSC
12 Arin-Berd, Yerevan
Tel: (374-1) 47 46 31, 47 36 71
Prevelent Commodity Types/Transportation Modes
Imports:
? Mineral fuels, including gas, gasoline, lubricants.
? Precious stones and metals used in diamond-cutting and jewelry industry.
? Food, including wheat, sugar, diary products, meat and poultry products
? Pharmaceuticals
? Computers and peripherals
? Building materials, including finishing materials
Exports:
a) agricultural products, including processed food, mineral water, vegetables, fruits, wine, brandy
b) non-ferrous metals concentrates, including copper, molybdenum
Exports to the U.S., which include mainly processed food and wine products, canned fruits and vegetables, cheese and other diary products, as well as apparel and textiles, are targeted at a large Armenian Diaspora community in the U.S.
Transportation modes
Armenia is a landlocked country. Its only transportation modes are railroads, automobiles (trucks), and air.
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