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Tbilisi, Georgia, May, 2004

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

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Tbilisi, Georgia, May, 2004

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  1. Armenia Present Situation as Experienced by Traders Tbilisi, Georgia, May, 2004

  2. 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

  3. 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

  4. 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)

  5. Export Cases: Contracts and Transportation

  6. Export Cases: Customs & Taxes

  7. Import Cases: Contracts and Transportation

  8. Import Cases:Customs & Taxes

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

  10. 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:

  11. Thank You Tbilisi, Georgia, May, 2004

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