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Armenia Present Situation as Experienced by Traders . Tbilisi, Georgia, May, 2004 . Foreign Trade Statistics. Export Structure ( in % to total Export ).

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Armenia

Present Situation as

Experienced by Traders

Tbilisi, Georgia,

May, 2004


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Foreign Trade Statistics

Export Structure (in % to total Export)

*Source of Data: State Statistics Department of the RACharts represent specific weights of individual countries in the export volume to CIS and EU countries in 2003


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Trade Regime with Foreign Countries

  • Armenia has FTA with almost all CIS countries

  • MFN: European Union  India

    • USA  Argentina

    • Lebanon

    • Bulgaria Canada

    • Romania

       China  Syria

       Switzerland

       Iran  Vietnam


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Export & Import Procedures

  • N-1779 Government Decree on 21st November, 2003 for

    export/import controls

  • To conduct import-export activities enterprises must be registered in a respective regional customs house as an entity involved in foreign economic activity

  • According to the customs procedures, the following

    documents are required for customs clearance for all

    imports and exports:

  • an invoice

  • a contract

  • consignment documents

  • a certificate on the country of origin (if an importer or exporter asks for preferential treatment)


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Export Cases: Contracts and Transportation



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Import Cases: Contracts and Transportation


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Import Cases:Customs & Taxes


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Conclusions: General Constraints

*1 stands for no obstacle, 4-major obstacle: “Regulatory and Administrative Costs in Armenia/2003” FIAS Report


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IMPORT

There is no problem in partner identification and contract conclusion

Artificial complications imposed

by Customs-2,5 points

Excessive paperwork (procedures for obtaining necessary certificates for agricultural products, where two overlapping lists exist, in order to avoid putting additional documentary burden on traders)- 2.24 points

Explicit or implicit requirement to give bribes-2.16 points

On average, the process of import customs clearance lasts 4.8 days taking 2.4 person-days of management time and 4.3 person-days of staff time

Application of transaction value method as a primary method for the valuation of goods imported

Very high transportation costs

EXPORT

There is no problem in partner identification and contract conclusion

Artificial complications imposed by Customs-2.57 points

Excessive paperwork -2.40 points

Explicit or implicit requirement to give bribes- 2.30 points

On average, the process of export customs clearance lasts 7 days taking 2.3 person-days of management time and 2.8

person-days of staff time

47.2% of export firms are eligible for VAT refund, which leads to excessive time lost

There are certain complications in obtaining Certificate of Origin (Form A)

Very high transportation costs

CONCLUSIONS:


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Thank You

Tbilisi, Georgia,

May, 2004


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