The customs regulations of the Republic of Armenia are set with accordance to international standards.

In foreign economical transactions the Republic of Armenia has used Harmonic System encoding since the 1^st of January 1997.

Customs registrations for the exports are performed according to "ASYCUDA" computer program since May, 1996.

Foreign Trade Regulation

Tariff Regulations.

There are tariff and non-tariff procedures in foreign trade.

These procedures are deliberately liberal and especially attractive for foreign companies.

According to the Republic of Armenia (RA)² Law On Customs Duties":

• The rates of export duties for goods are 0 %.
• The rates of import duties for goods are 10 % and 0 %.
• There are no duties for export of goods by individuals.
• Duty-free import of goods by individuals is allowed if costing up to US $500.00 and including:

  Divisible, similar goods with total weight of up to 50 kg; Goods under HS codes 0901 and 2101 -1 kg; Goods under HS code 22 - 2 liters or 1 bottle, If the volume of bottle is over 2 liters; Goods under HS code 2402 - 400 pieces; Goods under HS code if 04 30 -0.2 kg. For the part which exceeds the cost or quantity of goods mentioned above and imported by individuals, customs duties are collected according to the specified rates.

• Same person has a right for duty-free import of goods not more than 2 times during one calendar month.
• Individuals have a right for duty-free import of goods for their personal use that they carry on themselves or transport in their luggage, as well as of their own property.
• In case of importation of goods costing more than D.S. $500.00, for which the rate of import duty is 0% and the circulation of which, according to the 10" and 20'" paragraphs of the RA ¾Law On Value-Added Tax" is not free from VAT, VAT is calculated and collected by Customs Office during the customs registration.
• In case of importation of goods, that are in quantities and clearly with obvious trade purpose by foreign nationals, Customs have a right:

• No import customs duties are collected from:

• There are Import Excise Taxes for 11 items of goods. For imported goods that are subject to Excise Tax, the rate of Excise Tax should not be less than: for beer -equivaƒlent to US$0.35 per liter; for grape wine and wine syrup for each liter of 100% spirits - equivalent to US$0.5 per liter: for wine for each liter of 100% spirits - equivalent to US$1.2 per liter; for vodka each liter of 100% spirits - equivalent to US$3.75 per liter: for diesel fuel - equivalent to US$15 per ton.
• For the petroleum imported into RA there is a fixed payable amount equivalent to US$ 120.00per ton. Within this fixed amount the value of VAT will be 43.55%, and the value of Excise Tax will be 56.45%.
• VAT calculated and collected on the borders of RA by customs officers imported in the internal territory, for which customs duties are imposed by the legislation.
• Goods imported in the internal territory of RA that are free from customs duties according by the legislation are not subject to calculation and collection of VAT by customs officers.
• Goods imported by the internal territory of RA are considered free flow, and according to the Article 15 of the ¾Law On VAT² are not subject to calculation and collection of VAT regardless of the rate of customs duties. This list covers goods imported within the humanitarian aid and benevolent programs, as well as the imported goods that are directly connected with and significant for such programs. The definition of program as humanitarian aid, either benevolent or technical, is to be staled by authorized body for coordination of humanitarian aid of the Government of Republic of Armenia.

Regulation for calculation and collection of single fixed value payable for imported tobacco products, including Value-Added Tax, Excise Tax and Customs Duty:

Collection of Customs Fees

Customs fee for customs registration is collected at the following rates:

• For customs registration (with the exception of those for freight traffic) of goods and other products transported across the customs border of RA, as well as of money and currency transferred by banks, customs fee of 3500 AMD is collected.

• For freight traffic the following customs fee is collected:

• For submitting the documents (forms) customs fee of 1000 AMD is collected by customs office.

Customs fee is not to be collected from:

• Goods imported in the customs territory of RA for humanitarian aid or benevolent programs. In the cases not clearly Indicated in legislation (including international agreements), the definition of program is to he determined by authorized body of RA Government for coordination of humanitarian aid;

• Personal goods transported across the customs borders of RA by individuals (with the exception of private entrepreneurs) in accordance with to the legislation, with the exception of personal transport;

• Goods imported by individuals (with the exception of private entrepreneurs) In quantities not exceeding the stipulated amounts in Article G of the RA Law "On Customs Duties";

• Cultural items temporarily exported and then imported in compliance with RA regulations; and the transport during the performing legal international transportation in the time of such transportation.

Ecological Charges

According to the RA ¾Rule On Ecological Charges", and for emission of harmful materials in RA territory resulting from means of transportation registered in foreign countries, as well as for those imported into RA, and harmful for the environment, an ecological charge is to be collected.

For means of transportation entering the RA territory, registered in a foreign country an ecological charge is collected at the following rates:

• Ecological charge is not collected from diplomatic and consulate representations, carriers of goods for humanitarian aid or benevolent programs, and the Armed Forces of the Russian Federation.
• According to the Chapter II of ¾Regulation On Customs Registration Of Goods and Other Articles Transported Across the RA Customs Borders², and for goods imported into RA that are harmful for the environment", a charge is collected at the specific rates.

Quotas and Licenses

Provision of licenses for export and import of goods is regulated by the Government of the Republic of Armenia.

The import of medication, as well as the export of medication is performed on the basis of concluƒsion of Ministry of Public Health of the Republic of Armenia.

The import of chemicals for plant preservation is performed on the basis of conclusion of Ministry of Agriculture and Food of the Republic of Armenia.

The export of wild animals and plants defined in the Red Book is performed on the basis of conclusion of Ministry of Environment and Underground Resources of the Republic of Armenia.

The export of textile and textile products is performed on the basis of conclusion of Ministry of Economy of the Republic of Armenia.

The Ministry of Industry and Trade of the Republic of Armenia issues licenses for re-export of both tariff and non-tariff regulated goods originated in RA to third countries.

The re-export of goods originated in CIS countries is performed only under the license given by the conforming authorized institution.

The export of goods originated in other countries is performed without any limitation.

The Government of the Republic of Armenia has defined the list of prohibited goods for import and export, as well as transit via the Republic of Armenia.

For exportation of certain kinds of special machinery and equipment it is required to have the permit of the Ministry of Defense RA.

By Resolution of RA Government No. 15 from the 16^th of January 1998 the list of goods and services that require an obligatory certificate of compliance to safety for import and during transƒportation in the Republic of Armenia is defined.

The import of goods that require obligatory certification to RA Customs area is allowed only if they comply with the requirements of these regulations. To get Customs registration for these items, conformity certificate or other conformation documents issued by Armstate standard or its agent shall be required along with other necessary documents.

Enterprises and entrepreneurs, citizens of RA or other countries can import goods that require obligatory certification without certificate of compliance only if their quantity does not exceed norms, specified by Customs Department of RA.

Goods imported to RA that are to be served for official use of international organizations, ambassadorial and consulate representations and for personal use of their staff and famƒilies are not subject to the obligatory certification.

For export of color and black metals certificate of conformity is required.

For any quantity of goods in transit via territory of the Republic of Armenia an amount equal to US$20.00 is collected, except for goods in transit to the Republic of Georgia, for which an amount equal to US$100.00 is collected.

In accordance with Article 5" of 2^nd Chapter of the RA "Law On the Route Payment" transporters registered in other countries should pay the following monthly fee as route tariffs (toll) for each entrance for using the public automobile routes of the Republic of Armenia:

The route payment is collected by the Customs officers at Customs houses at the entrance of transportation facilities registered in other countries to the territory of the Republic of Armenia.

Individuals are allowed to import currency without limitation in case of presenting customs declaration according to defined regulations.

According to the Resolution No.143 of the RA Government, individuals have the right to export without any document from Republic of Armenia an amount of currency equal to US$ 10,000 (either in other equivalent cash currency) expressed in bank papers, treasury notes and coins. An amount exceeding US$10,000 must be transferred by bank service.