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Tbilisi, Georgia, May, 2004

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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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Presentation Transcript
slide1

Armenia

Present Situation as

Experienced by Traders

Tbilisi, Georgia,

May, 2004

foreign trade statistics
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

trade regime with foreign countries
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

export import procedures
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)
conclusions general constraints
Conclusions: General Constraints

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

conclusions
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:
slide11

Thank You

Tbilisi, Georgia,

May, 2004