Customs clearance in the Republic of Armenia
In connection with the accession of the Republic of Armenia to the Eurasian Economic Union some changes took place in many areas of legislation. Especially changes in customs legislation, the regulation of which is not only based on the domestic legislation of the Republic of Armenia, but also on the regulatory framework of the EAEU, which in turn is of substantial volume. Should one intend to engage in import, or export of goods, one will need a lawyer qualified in customs matters in the Republic of Armenia. Below we will consider the features of customs regulation in the RA.
The law of the Republic of Armenia “On Customs Regulation” and the international instruments of the Eurasian Economic Union, provide for the following types of payments for the transportation of goods and vehicles across the Republic of Armenia border:
- Customs duty;
- Customs fee;
- Excise tax;
- Value Added Tax (VAT).
The customs value as the basis of calculation of customs duties:
The RA law “On Customs Regulation” establishes that the costs of exported, or imported goods is carried out on the basis of the customs value of the goods. The customs value of exported goods is the transaction price, IE: the amount actually paid, or payable for the acquisition and movement of exported goods to the RA state border. The customs value of imported goods is established by the agreement on determination of the customs value of goods transported through the customs border, established by the Customs Union on January 25th 2008. This agreement establishes that the customs value of imported goods into the territory of the Customs Union is the price of the transaction with these commodities, IE: the price that was actually paid, or payable for the purpose of export of these goods into the territory of the Customs Union.
What is included in the customs value of goods in the Republic of Armenia?
The customs value of exported goods includes:
- The purchase price of the goods in the exporting country;
- The transportation expenses, loading, unloading, handling, insurance and other similar expenses incurred to bring the goods to the customs border of the Republic of Armenia;
- The commissions and brokerage costs for the delivery of goods to the customs border of the Republic of Armenia, except for commissions and intermediary broker costs for the purchase of goods;
- Actual cost of goods:
- The materials, components and other similar items that are included with/in the goods;
- The use of tools and other similar items used in the production of goods;
- The substances used in the manufacture of goods;
- The engineering, design project and other similar activities required for the production of goods.
- The payments for permits required for the sale of goods, directly or indirectly paid or payable by the buyer to the supplier;
- The cost of packaging, labelling and packaging operations;
- The amount to be paid by the buyer to the supplier for subsequent sale, use of goods moved across the customs border, or for ordering them.
The customs value of imported goods includes:
- The purchase price of the goods;
- The remuneration of intermediaries, agents and brokers, with the exception of remuneration for the purchase paid by the purchaser to his agent and/or intermediary for the provision of services for its representation abroad, related to the purchase of the evaluated, imported goods;
- The packaging costs for customs purposes if it is viewed as a unit of imported goods;
- The cost of packing, including cost of packaging materials and labor associated with packing;
- The cost of the seller provided free of charge or at a discounted price:
- The raw materials, components, intermediate products, and similar items that make up the imported goods;
- The tools, dies, molds and other similar items used in the production of imported goods;
- The materials used in the production of imported goods;
- The design, development, engineering, design work, artwork, design sketches and drawings made outside the common customs territory of the Customs Union, necessary for the production of the imported goods.
- Part of the resulting subsequent sale, disposal, or use in any other way, imported goods income, revenues that directly, or indirectly are due to the seller;
- The cost of transportation of goods to the airport, seaport or other place of arrival of goods into the common customs territory of the Customs Union;
- The costs of loading, unloading, or reloading of the goods and other transactions associated with their transportation to the airport, seaport, or other place of arrival of goods into the common customs territory of the Customs Union;
- The insurance costs associated with the operations referred to in the two preceding paragraphs;
- The royalties and similar payments for the use of intellectual property;
The customs duty:
Customs duty is the charge applied to legal entities and individuals as a mandatory fee, in order to meet State and public needs of the Republic of Armenia. The order and timing of collection of customs duties on exported and imported goods are determined by the Customs Code of the Customs Union, the law “On Customs Regulation” and other legal acts of the Republic of Armenia.
In connection with the accession of the Republic of Armenia to the Eurasian Economic Union the procedure for customs clearance at the customs border of the RA has changed accordingly. Customs clearance between the participating countries of the EAEU, The Russian Federation, The Republic of Armenia, The Republic of Belarus and The Republic of Kazakhstan are absent, and customs duties on the movement of goods within the customs territory of the Customs Union are not subject to payment. However, where the transport of goods is by road, the parties will need to fill in a customs declaration in the exporting country, as the Republic of Armenia has no common land borders with other member of the Eurasian Union.
Rates of customs duties in the Republic of Armenia:
To achieve the common goals of the EAEU, the participating countries set uniform rates of duties for the import of goods into the territory of the Customs Union from third countries. Although during the transitional period in respect of certain types of goods, customs duty in the Republic of Armenia will be different from the common tariff of the Customs Union and will remain at the level of previously existing duty rates.
The RA law “On Customs Regulation” determines that the export of goods from the customs territory of the Republic of Armenia is set to (zero percent) 0% rate of customs duty. Rates of customs duties on goods imported into the territory of the Customs Union are established by the Common Customs Tariff, which was adopted by the decision of the Eurasian Economic Commission.
Customs and tax legislation of the Republic of Armenia also established the value added tax (VAT) on certain goods, the amount of which is set at (twenty percent) 20%. When goods are imported into the Republic of Armenia from EAEU, importers are exempt from the obligation to pay VAT on the customs border of the Republic of Armenia. In this case, the VAT is paid by the tax authorities of the Republic of Armenia before the 20th (twentieth) day of the month following the month of importation. When goods are imported from third countries into the customs territory of the Customs Union, value added tax shall be paid to the customs authorities within 10 (ten) days after the importation of goods.
Rates of customs payments in the Republic of Armenia:
The customs fee is charged for processing the imported goods, as well as, for cash and foreign currency that banks transport across the border of the Republic of Armenia. Customs fee is charged for each customs clearance: when filling the cargo, customs declaration, or cargo customs declaration of individual citizens. The customs value of goods depends on the number of declared goods. When importing retail goods customs value is usually less than 7,000 AMD.
The Customs Code of the Republic of Armenia provides a list of goods that are exempt from customs fees:
- Goods imported for the purpose of charity or humanitarian assistance;
- Goods and/or objects in accordance with the law for natural persons, except for personal transport;
- Light vehicles crossing the border of the Republic of Armenia;
- Temporarily exported and imported goods of cultural significance, in the order established by the law of the RA;
- Goods conveyed by natural persons in the amount prescribed by law.
Our legal team has extensive experience in the field of customs law, as well as, all the necessary skills to organize a legitimate and quick export, or import of goods. Should you wish to engage in importation, or exportation of goods, you will need a qualified lawyer in the Republic of Armenia. Our qualified specialists are on hand to assist you.