What legislative changes took place after January 2, 2015, when the Republic of Armenia became the member of the Eurasian Economic Union? Generally changes to conditions for the Republic of Armenia with regards to the absence of customs clearance for the business entities from the EAEU countries. There is no need to pay VAT, an excise tax at the customs border. Instead, the declaration shall be made in the appropriate tax authorities of the RA.

Import of goods from the EAEU countries to the Republic of Armenia

Changes with regards to the canceling of customs clearance and customs duties for the business entities from the EAEU countries. The business entities from other countries shall be subject to collecting customs duties in accordance with the Unified Customs Tariff of the EAEU. Besides, importers are exempt from the obligation to pay VAT and excise tax on the customs border. Instead, they must file a declaration and make payment to the tax bodies of the Republic of Armenia. 

As the Republic of Armenia does not have common joint borders with other EAEU countries, when shipping goods by ground transportation, a customs declaration must be filled and filed in the exporting country. When the goods reach the Republic of Armenia, the importer will have to fill in the import declaration. That declaration includes the tax base of the goods, tax base of VAT and excise tax base. Along with the import declaration, it is necessary to produce the original application on import and payment of excise taxes. Note that during export and import of goods from the EAEU countries, it is necessary to fill and file these two documents on the Republic of Armenia customs border. The application must be submitted no later than within 180 days of said actions.

How to calculate the tax base for import of goods to the Republic of Armenia?

The tax base is the actual price from which VAT and excise tax will be calculated based on the import declaration. VAT base is the cost of goods added to the expenses related to the shipping of those goods to the Republic of Armenia. It is similar to the methodology of determining of customs value acting before. It is important to know that during the import of goods from the EAEU, the concept of checking price and indicative price no longer apply.

Export of goods from the Republic of Armenia to EAEU countries

In this case, the previous order remains. In comparison with the base taxes, as before nothing has changed. It is necessary to have two documents for zero rate application. The first is the export declaration, the second – application on the import of goods to the Republic of Armenia and payment of indirect taxes. Your partner from the EAEU country presents the second document as an importer. Export declaration and application on the import of goods and payment of indirect taxes, which has been presented by your partner to the tax authorities of his/her country, should be presented to the tax authorities of the Republic of Armenia. On the basis of these two documents only you may apply for zero tax rate. Both documents must be supplied to tax authorities no later than 180 days from the start of said actions.

Legal particularities of regulation of intellectual property in EAEU

The regulations of EAEU countries regarding IP acting in the Republic of Armenia, which defines the order of control over the objects of intellectual property in the common customs registry and over the objects of intellectual property included in the State Register of Trademarks and Marked Goods of the exporting country. The Republic of Armenia ratified the order of control over the limitation of the goods shipping, included in the common register of registered objects of intellectual property of the Eurasian Economic Union countries, as well as in the Register of Trademarks maintained by the customs authority of a member of EAEU. This way, the Republic of Armenia guarantees legal protection to trademarked goods, imported to the Republic of Armenia from other countries and included in the common customs registers of the objects of intellectual property of EAEU countries without right holder’s consent. It is necessary to note that acting legislation of the Republic of Armenia in the field of technical regulation was also harmonized with existing EAEU concepts and also with other orders provided in the EAEU treaty. In the field of technical regulation and infrastructure of quality, the legislation will correspond to the legislation of the EAEU. This order does not extend to the transportation of goods produced in the Republic of Armenia.

Turnover of pharmaceutical products and medical goods within EAEU and the Republic of Armenia

From January 1^st, 2016 the agreement on common principles and rules of turnover of pharmaceutical products entered into force. It is aimed at increasing availability of high quality, safe, effective pharmaceutical products for the population. This agreement will increase competitive abilities of the pharmaceutical industry of the Republic of Armenia on the global market, optimize the conditions for pharmaceutical business by liquidating, or minimizing administrative barriers and will provide access to the common market of EAEU. It is envisioned that access to the c common market of medical goods of EAEU will be significantly simplified and the quality of medical products will improve. We will also be able to detect and take the appropriate measures with respect to falsified and bad quality medical products in the EAEU. With the appearance of the common market for the pharmaceutical products, it is enough to register with the unified rules established in the EAEU treaties, and all pharmaceutical products will be able to freely turnover on the territory of the Union. This will naturally accelerate the appearance of new pharmaceutical products on the common market of EAEU, and we feel that this will have an overall positive effect on pharmaceutical business of the Republic of Armenia.

Necessary information about the rights of migrant workers within EAEU since 2015

Starting from January 2^nd, 2015 citizens of the Republic of Armenia will no longer need to have a document confirming their good character, including the patent for employment in the country of the Eurasian Economic Union. It is enough to have a signed labor contract with an employer or the civil contract to obtain legal status in the EAEU country. This means an individual can also act as an employer. In case of an early termination of a contract after the expiration of 90 (ninety) days from the moment of the entry into the territory of the EAEU country, the citizen of the Republic of Armenia has a right to conclude a new labor contract within 15 (fifteen) additional days. The citizens of the Republic of Armenia are exempted from the obligation to register at the physical address (including temporary registration) in authorized bodies of the EAEU countries if they are entering to commence employment within 30 (thirty) days of entry into any EAEU country.

Additionally, the citizens of the Republic of Armenia, who intend to live in Russian Federation, do not need the documents confirming the knowledge of the Russian language, the history of Russia and the fundamentals of RF legislation in contrast to other EAEU countries’ citizens. They do not need to present documents confirming the absence of drug addiction and other dangerous inflectional diseases, as well as, documents confirming the absence of HIV/AIDS virus. The social rights of citizens of the Republic of Armenia, who moved to an EAEU country, and the social rights of the members of their families (social insurance, except pension) shall be provided by the State where the work placement is, on the same grounds and with the same conditions as that of their own citizens. The labor history (pensionable service) of the citizen of the Republic of Armenia in EAEU country shall be included and added to the person’s general labor history (pensionable service).

Citizen of the Republic of Armenia and members of his/her family can get an ambulance in the emergency on the territory of EAEU country. Children of the citizen of the Republic of Armenia living on the territory of EAEU country have the same rights to education in accordance with the legislation of that country. Educational documents issued by the educational institutions of the Republic of Armenia are recognized on the territory of EAEU. The income of the citizen of the Republic of Armenia received on the territory of EAEU country is subject to taxation in accordance with the legislation of that country.

Please note that our own Certification and Standards Agency, to test and certify goods and products intended for sale or consumption outside the territory of the Republic of Armenia, is registered with Certification Agencies of the Eurasian Economic Union, as well as, the United Register of Standards and is compliant with the regulations of EAEU treaties pertaining to sale and consumption of goods. Certification and Standards Agency with ‘Vardan Khechyan LLC’ is the only such acting agency provided with such competences in the territory of the Republic of Armenia. You may use our legal support for exporting your production abroad to any EAEU member state or other non-EAEU states.

02.04.2015