LAW

 

OF THE REPUBLIC OF ARMENIA

 

Adopted on 14 September 2022

 

ON CUSTOMS REGULATION

 

SECTION I

 

GENERAL PROVISIONS

 

CHAPTER 1

 

BASIC PROVISIONS OF CUSTOMS REGULATION AND CUSTOMS AFFAIRS IN THE REPUBLIC OF ARMENIA

 

Article 1.

Subject matter and objectives of the Law

 

1. This Law shall define the procedure for and conditions of conducting customs operations by customs authorities in case of transportation of goods across the state border of the Republic of Armenia or in other cases prescribed by the Customs Code of the Eurasian Economic Union (hereinafter referred to as "the Code"), approved by Annex 1 to the Treaty on the Customs Code of the Eurasian Economic Union (hereinafter referred to as "the Union"), relations pertaining to payment of customs fees, special, anti-dumping and compensation duties, as well as other taxes and fees payable to customs authorities, conditions of the use of goods in cases of their transportation in accordance with customs procedures or without placement under customs procedures, relations between customs authorities and persons prescribed by the Customs Code of the Union, as well as other relations subject to regulation by the legislation of the member state of the Union under the Customs Code of the Union or not regulated by the Customs Code of the Union.

2. This law shall also regulate the relations pertaining to proceedings with regard to violations of customs rules and liability provided for violations of customs rules.

3. The objectives of this Law shall be as follows:

(1) ensuring the enforcement, by the Republic of Armenia, of international treaties and acts relating to the field of customs regulation of the Union in the field of customs regulation and customs affairs;

(2) ensuring the protection of rights and lawful interests of persons carrying out foreign economic activity across the state border of the Republic of Armenia and ensuring the economic security of the Republic of Armenia;

(3) regulation of relations pertaining to customs affairs, subject to regulation by the legislation of the Republic of Armenia, not regulated by the international treaties and acts in the field of customs regulation and envisaged thereby.

4. Customs legal relations not regulated by this Law shall be regulated within the scope of the legislation of the Union and the Republic of Armenia.

 

Article 2.

Customs regulation and customs affairs in the Republic of Armenia

 

1. The customs regulation in the Republic of Armenia shall be the definition of the procedure for and rules of customs affairs in accordance with the international treaties and acts in the field of customs regulation, as well as the Treaty on the Eurasian Union (hereinafter referred to as "the Treaty on the Union") and the Treaty on Accession of the Republic of Armenia to the "Treaty on the Eurasian Economic Union" (hereinafter referred to as "the Treaty on accession to the Union") and the legislation of the Republic of Armenia.

2. Customs affairs in the Republic of Armenia shall cover the control exercised by the customs authorities over the observance of the procedure for and conditions of transportation of goods and means of transport across the customs border of the Republic of Armenia, the procedure for conducting customs operations, including customs declaration, release of goods and means of transport, levy of customs fee, other fees and taxes, customs control and other customs administration means, as well as ensuring relations between the customs authorities and persons exercising the rights to possession, use or disposal of the goods.

 

Article 3.

Development of legislation in the customs field and management of customs affairs in the Republic of Armenia

 

1. The management, organisation and supervision of customs affairs in the Republic of Armenia shall be implemented by the State Revenue Committee (hereinafter referred to as "the Committee”).

2. The Committee shall, in accordance with the customs legislation of the Republic of Armenia or the Union, ensure the implementation of customs administration, as well as support the development of legislation of the Republic of Armenia in the customs field.

3. The Ministry of Finance shall, in accordance with the customs legislation of the Republic of Armenia or the Union, develop the legislation of the Republic of Armenia in the customs field.

 

Article 4.

Legal regulation of relations in the field of customs affairs

 

1. Relations pertaining to transportation of goods across the customs border of the Republic of Armenia shall be regulated in accordance with the customs legislation of the Union, and the part provided for or not regulated by the legislation of the Union — in accordance with the legislation of the Republic of Armenia.

2. Where this Law prescribes provisions contradicting the provisions provided for by the Union law defined by the Treaty on the Union, regulating the same relations, the provisions defined by the Union law provided for by the Treaty on the Union shall prevail, except for the cases when the Union law provided for by the Treaty on the Union reserves the definition of those provisions to the legislation of the Republic of Armenia.

 

Article 5.

Main concepts used in the Law

 

1. The following main concepts shall be used in this Law:

(1) import of goods into the Republic of Armenia — the bringing of goods and means of transport into the territory of the Republic of Armenia from the territory of Member States of the Union or the territory of states that are not members of the Union, by way of actually crossing the state border;

(2) export of goods from the Republic of Armenia — the actual bringing of goods and means of transport out from the territory of the Republic of Armenia into the territories of other Member States of the Union or territories of states that are not members of the Union;

(3) exercise of border supervision or other functions of border control — performance of supervision or control functions by customs authorities reserved to other state authorities by law and reserved to customs authorities in the case provided for by law.

2. The concepts in this Law shall be used in accordance with the Customs Code of the Union, other international treaties and acts of the Union in the field of customs regulation, as well as the Treaty on the Union and the Treaty on Accession to the Union, and in cases not being defined by the legal acts provided for by this part or the definition of concepts is reserved to the legislation of the Member State of the Union in accordance with those legal acts — in accordance with the legislation of the Republic of Armenia.

 

Article 6.

Customs documents

 

1. Pursuant to the regulation provided for by point 2 of Article 8 of the Customs Code of the Union, the classifiers of information included in customs documents shall be defined by the Committee.

2. In accordance with point 3 of Article 8 of the Customs Code of the Union, the structure and format of customs documents in the form of electronic documents shall be established by the Committee.

3. The Committee may define other customs documents in addition to those defined by the Customs Code of the Union, other international treaties and acts in the field of customs regulation. The form of the documents specified in this part, the procedure for filling them in, their structure and format, as well as the procedure for making amendments and supplements thereto shall be established by the Committee.

4. In accordance with point 5 of Article 8 of the Customs Code of the Union, in case no forms of customs documents and no procedure for making amendments and supplements thereto are established by the Customs Code of the Union, other international treaties and acts in the field of customs regulation, the forms of such documents and the procedure for making amendments and supplements thereto shall be established by the Committee.

 

Article 7.

Observance of prohibitions and restrictions

 

1. The general provisions on observance of prohibitions and restrictions shall be prescribed by Articles 7 and 12 of the Customs Code of the Union.

2. The observance of non-tariff regulatory measures, including unilaterally established non-tariff regulatory measures and technical regulation measures shall be confirmed in accordance with the Treaty on the Union, in cases and through the procedure prescribed by the Eurasian Economic Commission (hereinafter referred to as "the Commission") or by the Government, while the observance of export supervision measures, including measures applied to military products, in cases and through the procedure prescribed by the Government, through submission of documents or information confirming the observance of those measures.

3. In cases of transportation of goods necessary for elimination of the after-effects of natural disasters, natural and technogenic emergency situations and in other cases prescribed by the Government, when the documents certifying the observance of non-tariff regulatory measures may not be submitted to the customs authorities during the release of goods, the release of goods, except for goods prohibited for export or import, may be performed without the existence of the specified documents based on the permission of customs authorities upon the application of the declarant, no later than within one month following the release, provided that they will be submitted, as well as that the requirements prescribed by point 3 of Article 126 of the Customs Code of the Union will be met.

4. The goods mentioned in part 3 of this Article shall be deemed to be conditionally released goods until submission of the confirmation prescribed by sub-point 2 of point 7 of Article 126 of the Customs Code of the Union, whereas before that, the restrictions prescribed by Article 191 of this Law shall apply to the indicated goods.

5. Irrespective of the circumstance of existence of permission to submit the documents mentioned in part 3 of this Article after the release of goods, the declarant shall be obliged to ensure the observance of non-tariff regulatory measures at the time of import.

6. In accordance with point 1 of Article 12 of the Customs Code of the Union, conditioned by the prohibitions and restrictions, persons other than those mentioned in the second paragraph of point 1 of Article 12 of the Customs Code of the Union may carry out export of goods prohibited for import from the customs territory of the Union in the case prescribed by this Law.

7. Conditioned by the prohibitions and restrictions, the export of goods prohibited for import from the customs territory of the Union may be carried out by persons other than those mentioned in the second paragraph of point 1 of Article 12 of the Customs Code of the Union, as well as those mentioned in part 8 of Article 181 of this Law, upon the permission of the customs authority.

8. Where the customs authority renders a decision on prohibition of export of the goods prescribed by point 5 of Article 12 of the Customs Code of the Union, the customs authorities shall, as prescribed by Chapter 51 of the Customs Code of the Union, take the goods into custody within three working days after receiving the mentioned decision, where those goods are not returned from the place of departure to the customs territory of the Union.

 

CHAPTER 2

 

TRANSPORTATION OF GOODS ACROSS THE STATE BORDER OF THE REPUBLIC OF ARMENIA

 

Article 8.

Places of transportation of goods across the customs border of the Union, including the state border of the Republic of Armenia

 

1. In accordance with point 2 of Article 10 of the Customs Code of the Union, goods shall be imported and exported across the customs border of the Union through state border crossing points.

2. State border crossing points established by the Government shall be deemed to be places of transportation of goods across the state border of the Republic of Armenia.

3. Transportation of goods across the state border of the Republic of Armenia may be carried out through other places in addition to those mentioned in part 1 of this Article, in cases and in the manner prescribed by the Government.

4. Import and export of goods of a separate category prescribed by the Government across the customs border of the Union may be carried out only at the state border crossing points established by the Government.

5. Import of goods into the Republic of Armenia shall be carried out through transportation of goods through places of arrival that are state border crossing points of the Republic of Armenia, prescribed by point 4 of Article 10 of the Customs Code of the Union, while in the case prescribed by part 3 of this Article — through other places.

6. Export of goods from the Republic of Armenia shall be carried out through transportation of goods through places of departure that are state border crossing points of the Republic of Armenia, prescribed by point 4 of Article 10 of the Customs Code of the Union, while in the case prescribed by part 3 of this Article — through other places.

 

Article 9.

Submission of preliminary information to customs authorities

 

1. The purposes of submission of preliminary information to customs authorities, composition and cases thereof shall be prescribed by Article 11 of the Customs Code of the Union.

2. In accordance with the second paragraph of point 7 of Article 11 of the Customs Code of the Union, preliminary information may be submitted to customs authorities also in English.

3. Where the information systems used by the customs authorities lack, at the moment of import of the goods, the preliminary information subject to mandatory submission in the composition prescribed by sub-point 1 of point 2 of Article 11 of the Customs Code of the Union, the customs authorities shall carry out customs control in accordance with Chapter 44 of the Customs Code of the Union, in the forms of customs control prescribed by Chapter 45 and through the means ensuring the exercise of customs control prescribed by Chapter 46 of the Customs Code of the Union.

4. In accordance with sub-point 8 of point 15 of Article 11 of the Customs Code of the Union, preliminary information may be not submitted to the customs authorities for goods transported across the state border of the Republic of Armenia and imported to the free economic zone having borders fully or partially matching with the parts of the state border of the Republic of Armenia, as well as for goods imported to the free economic zone established in accordance with point 1 of Article 455 of the Customs Code of the Union.

5. In accordance with Article 114 of the Customs Code of the Union, the information reflected in the preliminary customs declaration submitted in the form of an electronic document shall be used as preliminary information in case of preliminary customs declaration before the arrival of goods, where the indicated preliminary customs declaration contains the information required by point 2 of Article 11 of the Customs Code of the Union.

 

CHAPTER 3

 

CLASSIFICATION OF GOODS ACCORDING TO THE COMMON COMMODITY NOMENCLATURE OF FOREIGN ECONOMIC ACTIVITY OF THE UNION

 

Article 10.

Common Commodity Nomenclature of Foreign Economic Activity of the Union

 

1. For the purpose of applying customs tariff and non-tariff regulatory measures of foreign economic activity, as well as for the purpose of keeping customs statistics, the Commodity Nomenclature of Foreign Economic Activity of the Union (hereinafter referred to as “CN FEA”) approved by the Commission shall be applied in the Republic of Armenia.

2. CN FEA may be used for purposes other than those provided for by the second paragraph of point 1 of Article 19 of the Customs Code of the Union and this Law, if this is provided for by law or a decision of the Government.

 

Article 11.

Adoption of preliminary decisions on classification of goods by customs authorities and explanations thereof

 

1. The customs authority may, on the basis of the application of the declarant or his or her authorised person, adopt a preliminary decision on classification of goods according to CN FEA in accordance with Chapter 3 of the Customs Code of the Union and the provisions prescribed by this Article.

2. In accordance with point 6 of Article 21 of the Customs Code of the Union, customs authorities may adopt decisions on classification of separate types of goods and give clarifications as prescribed by the Committee. The decisions or clarifications prescribed by this part shall be published on the official website of the Committee within five working days following the provision of such decisions or clarifications.

3. The Committee shall publish, on its official website, the information for persons in the territory of the Republic of Armenia included in preliminary and other decisions adopted by customs authorities, except for the information on the interested person, constituting state, commercial, bank and another secret protected by law.

4. In accordance with point 3 of Article 24 of the Customs Code of the Union, when the information submitted by the applicant for adoption of a preliminary decision on classification of goods by the customs authority is not sufficient, the customs authority shall, no later than within 10 working days following the registration of the application submitted for adoption of the preliminary decision on classification of goods, send an electronic or hard copy request to the person having submitted the application on the need to provide additional information, by submitting in writing the list of information required for rendering the preliminary decision.

5. Where the person having submitted the application fails to provide additional information or the information provided is not sufficient for rendering a preliminary decision, the customs authority shall not adopt a preliminary decision and shall notify the applicant thereon.

6. The customs authority shall adopt the preliminary decision on classification of goods no later than within 30 days following the registration of the application submitted for adoption of the preliminary decision on classification of goods, in case the applicant submits the whole information required, as prescribed by the Customs Code of the Union and this Law.

7. Irrespective of the time limit prescribed by part 6 of this Article, where a need arises to study the documents and information submitted for adoption of a preliminary decision on classification of goods for a longer period, as well as where a need arises to assign a relevant expert examination, the customs authority shall adopt the preliminary decision on classification of goods no later than within 90 days following the registration of the application submitted for the adoption of a preliminary decision on classification of goods, by notifying the applicant thereon.

8. In case of sending the request provided for by part 4 of this Article, the time limits for provided for by parts 6 and 7 of this Article for the provision of a preliminary decision on classification of goods by customs authorities shall be suspended from the day of notification of the declarant or his or her authorised person by the customs authority on the need to submit additional information until the submission of the required information and shall be resumed from the day of receipt of such information by the customs authority.

9. The Government may, in accordance with point 2 of Article 25 of the Customs Code of the Union, prescribe the cases or the list of goods for which the validity period of the preliminary decision on classification of goods provided by the customs authority shall be five years from the day of its adoption.

10. The decision on recalling the preliminary decision on classification of goods upon the ground provided for by sub-point 4 of point 6 of Article 26 of the Customs Code of the Union shall be adopted on the basis of decisions on classification of goods adopted by the World Customs Organization and shall apply from the day of its adoption.

 

Article 12.

Classification of goods

 

1. The CN FEA codes of the goods shall be specified in customs declarations and documents submitted to the customs authorities, prescribed by the legislation of the Republic of Armenia and the Union, upon necessity.

2. In case of having information on incorrect classification of goods during customs declaration of goods, the customs authority may request additional information from the declarant relating to the classification of the goods, the list whereof shall be established by the Government.

3. The declarant shall submit the information provided for by part 2 of this Article to customs authorities in the manner and within the time limits prescribed by Articles 324 and 325 of the Customs Code of the Union.

4. In accordance with part 3 of this Article, in case a need arises to clarify the CN FEA code declared by the declarant in the customs declaration after the receipt of documents certifying the information submitted to customs authorities, as well as to request additional information for classification, the release of goods shall be performed under the CN FEA codes previously declared by the declarant, in accordance with Articles 121 and 325 of the Customs Code of the Union.

5. The provision prescribed by part 4 of this Article shall not extend to goods subject to non-tariff regulation for which import and export prohibitions or restrictions are established by the customs legislation of the Republic of Armenia and the Union, in the existence of which the time period for release of the goods shall be extended, in accordance with point 4 of Article 119 of the Customs Code of the Union, until the customs authorities render a decision on the CN FEA code.

6. Where customs authorities detect incorrect classification of goods both before and after the release of goods following the registration of the customs declaration, the official of the customs authority carrying out customs control shall draw up a record on incorrect classification of the goods, on the basis whereof the customs authority shall adopt a decision additional information on the classification of the goods, the list whereof shall be established by the Government.

7. The form of the decision on classification of goods, the procedure and time limits for adopting the decision shall be established by the Committee.

8. The decision on classification of goods adopted by the customs authority shall include the following information:

(1) the name of the customs authority having adopted the decision on classification of goods, the name, surname and signature of the head or the official replacing him or her;

(2) name, taxpayer identification number (TIN) of the declarant;

(3) year, month, day of adopting the decision on classification of goods (hereinafter referred to as "the date") and the registration date and number of the declaration whereby the classified goods have been declared, as well as the number of the goods in the customs declaration wherefore the decision on classification of goods has been adopted;

(4) name of goods (detailed description);

(5) information necessary for classification of goods;

(6) ten-digit CN FEA code of goods, and in the case prescribed by point 3 of Article 20 of the Customs Code of the Union, where the customs authority lacks clear data on peculiarities of goods, their names or other information necessary for the classification of goods at the 10-digit level during classification of goods — at least the four-digit CN FEA code, based on the data on the peculiarities affecting the classification characteristics of the goods;

(7) substantiation of, reason for the adopted decision and the reference to the relevant rule of interpretation of CN FEA.

9. The decision on classification of goods may be provided by customs authorities via the electronic information system used by the customs authorities or in hard copy. The decision on classification of goods in hard copy may be provided on the official form of the customs authorities, by a letter of the customs authority, or may be deemed as an integral part of the decision on conducting an inspection or the decision on levy of customs and other fees or penalties, where such decisions are rendered during the performance of customs control following the release of goods.

10. The decision of the customs authority on classification of goods shall be binding upon the declarant.

11. In case a decision on classification of goods is adopted by the customs authority before the release of goods, it shall be provided to the declarant before the time limit for the release of goods.

12. In case the decision of the customs authority on classification of goods is adopted during the customs inspection after the release of goods, it shall be forwarded to the declarant along with the customs inspection act.

13. The levy of the customs duty, the unpaid or underpaid tax amounts, as well as the fines and penalties prescribed by this Law calculated against them as a result of change of the CN FEA code in the case provided for by this part, shall be carried out in accordance with this Law.

14. In order to provide professional support to the declarant or his or her authorised person on issues related to classification of goods for the purpose of their release, the Committee may establish the peculiarities of declaration of information on classification of goods.

15. The declarant or his or her authorised person shall enjoy the peculiarities specified in part 14 of this Article voluntarily for the purpose of release of the goods.

16. Irrespective of the regulation prescribed by part 14 of this Article, the declarant or his or her authorised person may specify the information on classification of the goods, which he or she considers to be correct.

 

Article 13.

Procedure for adopting decision on the classification of goods imported or exported in an unassembled or dismantled, including non consolidated or incomplete or state within the time period prescribed

 

1. Unassembled or dismantled, including non consolidated or incomplete goods, the importing or exporting whereof is envisaged to be carried out in several consignments within a period exceeding the time limits prescribed by Article 101 of the Customs Code of the Union, may be declared under one classification code of the CN FEA in case of existence of a decision of the customs authority on the classification of goods.

2. In accordance with point 3 of Article 21 of the Customs Code of the Union, the customs authority shall adopt the decision on the classification of goods transported across the customs border of the Union in an unassembled or dismantled or non consolidated or incomplete state before the declaration of those goods under customs procedure (except for the customs procedure "Customs transit").

3. In accordance with point 3 of Article 21 of the Customs Code of the Union, the procedure and time limits for adopting the decision on classification of goods transported across the customs border of the Union in an unassembled or dismantled, including non consolidated or incomplete state, making amendments to such decision, and the procedure and time limits for terminating it, as well as the forms of the decision on classification of goods, making amendments to such decision and terminating it, as well as forms of applications submitted to the customs authorities for adoption of the decisions specified in this part shall be established by the Government.

4. The list of the goods in respect of which the customs authorities adopt the decisions provided for by part 2 of this Article for the purpose of doing a customs declaration with the peculiarities prescribed by Article 117 of the Customs Code of the Union shall be established by the Commission, and in the cases provided for by the Commission — by the Government.

(Article 13 amended by HO-113-N of 28 February 2024)

 

CHAPTER 4

 

ORIGIN OF GOODS

 

Article 14.

Determining the origin of goods

 

1. The origin of goods imported into the Republic of Armenia from states that are not members of the Union shall be determined for the purposes and by the rules provided for by the Treaty on the Union, in accordance with Chapter 4 of the Customs Code of the Union.

2. The origin of goods exported from the Republic of Armenia shall be determined and the certificate of origin for the goods shall be issued by the authorised body of the Government, as prescribed by this Law and point 2 of Article 28 of the Customs Code of the Union, before the entry into force of the decision of the Commission provided for by that point.

3. The procedure for providing certificates of origin of goods and conducting expert examination shall be defined by the Government.

4. The origin of goods shall be determined by the declarant during declaration, whereas in cases prescribed by this Law and other legal acts — by the customs authority.

The origin of goods shall be declared by the declarant during the customs declaration of goods.

5. In accordance with the second paragraph of point 25 of the rules on determining the origin of goods imported into the customs territory of the Union, approved by the decision of the Board of the Commission (non-preferential rules on determining the origin of goods), when determining the origin of goods imported into the territory of the Union by non-preferential rules, the cases when the goods are confirmed by the declaration of origin shall be established by the Government.

 

Article 15.

Status granted to goods according to origin

 

1. According to origin, goods shall be granted with non-preferential or preferential status.

2. The following shall be provided for within the framework of the non-preferential status of goods:

(1) application of tariff regulatory measures prescribed by the customs legislation of the Republic of Armenia and the Union, except for the cases of applying privileges as prescribed by legislation;

(2) application of non-tariff regulatory measures prescribed by the customs legislation of the Republic of Armenia and the Union, prohibitions and restrictions, measures for protection of the domestic market;

(3) issuance of non-preferential certificates of origin of goods.

3. The following shall be provided for within the framework of the preferential status of goods:

(1) exemption from application of tariff regulatory measures prescribed by the customs legislation of the Republic of Armenia and the Union within the scope of the provisions provided for by international treaties;

(2) provision of preferential certificates of origin of goods;

(3) provision of tariff preferences to developing or least developed countries.

4. The origin of goods exported from the territory of the Republic of Armenia shall be determined for the purposes of tariff and non-tariff regulation, prohibitions and restrictions, maintenance of customs statistics and provision of certificates of origin.

 

Article 16.

Rules for determination of origin of goods produced completely in the Republic of Armenia

 

1. The following shall be deemed as goods produced completely in the Republic of Armenia:

(1) live animals born and bred in the Republic of Armenia;

(2) animals acquired in the Republic of Armenia as a result of hunting, trapping, fishing (in territorial and internal waters of that country) or of any other similar activity;

(3) products obtained from live animals in the Republic of Armenia;

(4) plants or plant products grown, reaped, picked or harvested in the Republic of Armenia;

(5) minerals and other natural resources, not included in points 1-4 of this part, that are obtained and extracted from the territory, the subsoil or the base of territorial and internal waters of the Republic of Armenia;

(6) residues and secondary raw materials deemed to be production, processing or consumption consequence in the Republic of Armenia, which are not useful or are useful only as raw material;

(7) products obtained by fishing in neutral waters by ships legally bearing the flag of the Republic of Armenia;

(8) products made from the goods referred to in point 7 of this part in factory ships legally bearing the flag of the Republic of Armenia;

(9) products obtained during flight on board of spacecrafts belonging to the Republic of Armenia or rented by the Republic of Armenia;

(10) goods obtained or produced in the Republic of Armenia from the products referred to in points 1-9 of this part.

 

Article 17.

Sufficient processing criteria for goods in the Republic of Armenia

 

1. Sufficient processing criteria for goods exported from the Republic of Armenia shall be deemed the activities as a result whereof:

(1) change of any one of the first four digits of the commodity code of the goods has been changed in the CN FEA;

(2) the percentage share of the value and the added value of materials originated in the Republic of Armenia, used in the production of the goods, comprises no less than 30 % of the release (supply) price of the product; moreover, indirect taxes, trade markups, transport, insurance, maintenance and other similar costs shall not be included in that price.

2. Goods classified as sets of goods in the CN FEA or considered as such shall be deemed to be of origin of the Republic of Armenia, if the set has been assembled in the Republic of Armenia and the total value of parts thereof originated in the Republic of Armenia exceeds 55 % of its value.

 

Article 18.

Activities not being a criterion of sufficient processing of goods

 

1. The following shall not be considered as criteria of sufficient processing of goods exported from the Republic of Armenia:

(1) modifications made exclusively in the intended use of goods;

(2) packaging activities carried out in any form;

(3) classification of incomplete goods under completed goods or classification of goods completed but not assembled under assembled goods, pursuant to the rules of Harmonised System;

(4) simple assembling activities, in particular, plugging of units to obtain goods classifiable under another name;

(5) adding exclusively protective measures;

(6) obtaining goods under commodity group 02 (meat and meat by-products) from goods classified under commodity group 01 (live animals) of the CN FEA;

(7) preparatory works for marketing and carriage of goods;

(8) activities necessary for preservation, transport and storage of products;

(9) fixing of marks, labels or other distinguishing marks on goods or their packages;

(10) obtaining such products by way of mixing goods (components), the characteristics whereof do not essentially differ from the characteristics of the initial components;

(11) combination of two or more actions referred to in points 1-10 of this part.

2. Regardless of the requirements of point 1 of part 1 of this Article, goods obtained as a result of modification of intended use thereof shall be deemed as sufficiently processed, where the performed works meet the criteria prescribed by point 2 of part 1 of Article 17 of this Code.

3. When determining the origin of goods exported from the Republic of Armenia, the origin of packing materials and containers presented therewith shall not be taken into account under any provision on the change of classification of the goods as provided for by point 1 of part 1 of Article 17 of this Code. Packing materials and containers shall be classified together with the goods subject to classification under the CN FEA.

4. The following shall not be taken into account when determining the origin of goods:

(1) origin of energy, fuel, equipment, machines and instruments used for the production of goods;

(2) country of origin of materials not envisaged by the technical process but used and physically not included in the goods for bringing them to a final form;

(3) origin of supplementary devices and spare parts transported concurrently with goods, where their quantity and value are typical to the given goods, their price is included in the price of the goods and they are not invoiced separately from the goods.

5. In case the sets or goods classified as such in the Harmonised System are transported through the customs border of the Republic of Armenia in several consignments (split up) for the purpose of application of the rule prescribed by part 2 of Article 17 of this Code:

(1) the declarant shall inform the customs authorities thereof in writing in advance, by stating the reasons for splitting up, the legend of each consignment with an indication of relevant commodity codes, the value and origin of the goods included in each consignment;

(2) all split up goods must be delivered from the same country by the same supplier;

(3) the whole consignment shall be transported through the state border of the Republic of Armenia no later than within six months from the day of acceptance of the customs declaration.

 

Article 19.

Determination of the origin of goods in accordance with the rules of other countries

 

1. Irrespective of the provisions of this Chapter, the origin of goods produced in the Republic of Armenia may be determined in accordance with the rules prescribed by the legislation of a country, group of countries, customs union of countries, region or part of a country to which these goods are supplied under the terms of the transaction of foreign economic activity.

2. In accordance with this Article, the origin of goods shall be determined on the basis of the application of the declarant, as prescribed by the Government.

 

Article 20.

Certifying the origin of goods

 

1. For the purpose of certifying the origin of goods, customs authorities may request from the declarant or the authorised person thereof the documents prescribed by the Customs Code of the Union or this Law, certifying the origin of goods.

2. The declared information regarding the origin of goods shall be approved by customs authorities. The declared origin of goods shall be taken as a basis for carrying out customs formalities by customs authorities, where it is stated as the only country of origin in the certificate of origin of goods submitted by the declarant and issued by the body authorised by the country of origin of goods or the Government.

3. In case the customs authority has doubts about the authenticity of the certificate of origin submitted by the declarant, it shall make a request to the authorised bodies or organisations of the country having issued the certificate of origin of goods for receiving additional documents or information. In case a request is made, the goods shall be released by paying customs and other fees calculated in accordance with the origin of goods declared by the declarant (with exemption from paying fees), on the condition of ensuring the payment of the positive difference of the amounts of the customs fees calculated by the customs authorities in accordance with Article 121 of the Customs Code of the Union and actually paid and of other fees.

4. Customs authorities shall, within five working days after receiving the results of the request on the origin of goods, render a decision on the need for paying additional customs and other fees in accordance with the results of the request on the declared goods or the absence of such need, which shall be sent to the declarant in person or by post or electronically, by attaching the grounds for rendering the decision. The declarant shall, within ten working days after receiving the decision from the customs authorities, pay the amounts of customs and other fees prescribed by this Article and the penalties provided for by law for failure to pay them within the time limit prescribed.

5. The submission of a certificate of origin of goods shall not be a mandatory condition for confirming the origin of goods transported through the state border of the Republic of Armenia, except for cases prescribed by the legislation of the Union and the Republic of Armenia.

6. Where more than one or no country is indicated on goods or its package or the documents accompanying them, then:

(1) in case of availability of a certificate of origin or a declaration of origin, the customs authorities shall confirm the origin mentioned therein;

(2) in case of impossibility to confirm the origin of goods by the customs authorities due to the absence of a certificate of origin or declaration of origin, the highest rates of special, anti-dumping or compensation means and the most severe measures of non-tariff regulation prescribed by the legislation of the Union and the Republic of Armenia in respect of the mentioned countries shall be applied to the goods.

7. Depending on the origin of goods, with the view to confirming the application of preferences, privileges, as well as the circumstance of conformity with prohibitions and restrictions, measures of internal market protection, the customs authorities may request mandatory confirmation of the origin of goods within the scope of exercising customs control.

 

Article 21.

Preliminary decision on the origin of goods

 

1. The customs authority may, on the basis of the application of the declarant or his or her authorised person, adopt a preliminary decision in accordance with the provisions prescribed by Chapter 4 of the Customs Code of the Union and this Article.

2. The information included in the application for adoption of a preliminary decision on the origin of goods and submitted along with the mentioned application shall be defined by Article 34 of the Customs Code of the Union.

3. Samples and specimens of goods shall also be submitted, where possible, along with the application submitted for adoption of a preliminary decision on the origin of goods.

4. In accordance with point 4 of Article 34 of the Customs Code of the Union, when the information submitted by the applicant for adoption of a preliminary decision on the origin of goods by the customs authority is not sufficient, the customs authority shall, no later than within 10 working days following the registration of the application submitted for adoption of a preliminary decision on the origin of goods, notify, electronically or in hard copy. the person having submitted the application of the need to provide additional information, by submitting in writing the list of information required for rendering a preliminary decision.

5. Where the person having submitted the application fails to provide additional information or the information provided is not sufficient for rendering a preliminary decision, the customs authority shall not adopt a preliminary decision and shall notify the applicant thereof.

6. The customs authority shall adopt a preliminary decision on the origin of goods no later than within 30 days after the registration of the application submitted for adoption of a preliminary decision on the origin of goods, in case of submission by the applicant of the entire information required, prescribed by the Customs Code of the Union and this Law.

7. Irrespective of the time limit prescribed by part 6 of this Article, where a need arises to review — for a longer period — the documents and information submitted for adoption of a preliminary decision on the origin of goods, as well as where a need arises to assign a relevant expert examination, the customs authority shall adopt the preliminary decision on the origin of goods no later than within 90 working days following the registration of the application submitted for the adoption of a preliminary decision on the origin of goods, notifying the applicant thereof.

8. Where a need arises to submit the information provided for by part 4 of this Article, the time limits for the provision, by customs authorities, of a preliminary decision on the origin of goods, provided for by parts 5 and 6 of this Article, shall be suspended from the day of notifying the declarant or his or her authorised person by the customs authority on the need to submit additional information until the day of submission of the required information and shall be resumed from the day of receiving such information by the customs authority.

9. Amendments to the preliminary decision on the origin of goods, termination and recall of that decision shall be performed as prescribed by Article 36 of the Customs Code of the Union.

 

CHAPTER 5

 

RULES FOR DETERMINING CUSTOMS VALUE

 

Article 22.

Customs value

 

1. The customs value of goods imported into the customs territory of the Union shall be determined in accordance with Chapter 5 of the Customs Code of the Union.

2. In accordance with point 15 of Article 38 of the Customs Code of the Union, the Government shall establish the procedure for conducting consultations between customs authorities and declarants with the view to determining the customs value by the methods prescribed by Articles 41 and 42 of the Customs Code of the Union.

3. Customs authorities shall, as prescribed by this Law, provide persons with notifications on issues related to the customs value of goods. While providing notifications, the customs authority shall not have the right to carry out verification of documents and adopt preliminary decisions on the customs value.

4. The concepts "affiliated persons", "identical goods", "similar goods" used in this Law shall be applied with the meanings defined by Chapter 5 of the Customs Code of the Union.

 

Article 23.

Preliminary decisions on the methods of determining the customs value

 

1. In accordance with point 19 of Article 38 of the Customs Code of the Union, customs authorities may provide preliminary decisions on the methods of determining the customs value of imported goods.

2. The Government shall establish the procedure for and conditions of provision, by the customs authorities, of preliminary decisions on the methods of determining the customs value of goods imported into the Republic of Armenia, provided for by part 1 of this Article, as well as the procedure and time limits for application of the decisions.

 

Article 24.

Determining the customs value of goods exported from the Republic of Armenia

 

1. Customs value of goods exported from the Republic of Armenia shall be the transaction price, i.e., the amount which has been actually paid, is subject to payment or must have been paid in order to acquire the goods for the purpose of exporting them and transporting them up to the state border of the Republic of Armenia.

2. Customs value of goods exported from the Republic of Armenia shall be declared by the declarant or the customs representative, along with other information subject to declaration.

3. Customs value of goods exported from the Republic of Armenia shall be determined by the declarant, except for the cases provided for by this Law, where it is determined by customs authorities. Customs value shall be determined in accordance with the explanatory notes of Chapter VII of the General Agreement on Tariffs and Trade (Agreement on determining the customs value), as prescribed by the Government.

4. With a view to determining the customs value, customs authorities shall — within two working days after the declarant submits the documents prescribed by Article 27 of this Law — approve the customs value of the goods exported from the Republic of Armenia and calculated pursuant to Article 27 of this Law. In the cases prescribed by point 2 of Article 35 of this Code, the customs value of the goods exported from the Republic of Armenia and calculated pursuant to Article 27 of this Law shall be approved or rejected within one working day after the declarant submits additional documents or information to the customs authorities.

5. Change of the customs value of goods exported from the Republic of Armenia or change of the method of determining the customs value shall be made in the cases, in the manner and form established by the Commission in accordance with Article 112 of the Customs Code of the Union, based on the request of the customs authority to make changes to the information submitted in the customs declaration prior to adoption of the decision of the customs authority on making changes to the information submitted in the customs declaration before or after release of goods.

6. In case the customs value calculated based on the documents prescribed by Article 27 of this Law is rejected, customs authorities shall inform the declarant in writing of the rejection of the customs value calculated by the method referred to in Article 27 of this Law within the time limits prescribed by part 2 of Article 35 of this Law by drawing up the rejection notice provided for by Article 35 of this Law.

7. In case of failure by customs authorities to submit a notice to the declarant on rejection of the customs value within the time limit prescribed by part 2 of Article 35 of this Law, the customs value determined by the declarant shall be deemed as approved.

 

Article 25.

Constituents of customs value of goods exported from the Republic of Armenia

 

1. Customs value shall include:

(1) the price for acquisition of goods in the Republic of Armenia;

(2) transportation, loading, unloading, transloading, insurance and other similar expenses incurred for the transportation of goods up to the state border of the Republic of Armenia;

(3) commission and intermediary (brokerage) expenses incurred for the transportation of goods up to the state border of the Republic of Armenia, except for commission and intermediary (brokerage) expenses incurred for acquisition of goods;

(4) the following values provided to the supplier by the buyer gratuitously or with partial compensation, directly or indirectly for the purpose of producing and supplying goods exported from the Republic of Armenia and apportioned to the exported goods as appropriate:

a. the value of materials, components and other similar items contained in the goods;

b. the value of use of tools and other similar items used in the production of the goods;

c. the value of materials consumed in the production of the goods;

d. the value of engineering, design, drafting and other similar works carried out in a country other than the exporting country and required for the production of the goods;

(5) payments made directly or indirectly or payable payments made by the buyer to the supplier for royalties and permits required for the sale of goods;

(6) the value of container, pack and packaging works;

(7) amounts subject to payment by the buyer to the supplier for further sale, use or disposal of the goods exported from the Republic of Armenia.

2. The expenses referred to in points 2-7 of part 1 of this Article shall be included in the customs value of export, where they have not been taken into account in the price for acquisition of goods.

 

Article 26.

Expenses not included in the customs value of goods exported from the Republic of Armenia

 

1. Customs value of export shall not include:

(1) indirect taxes paid or payable in the Republic of Armenia and separately noted in the payment documents;

(2) interests arising from the financial liabilities assumed by the buyer with respect to the supplier, except for the amounts referred to in point 7 of part 1 of Article 25 of this Law, and where that interest rate does not exceed the average interest rate applied in similar transactions in the exporting country for the same or nearly the same time period;

(3) the value of information (software packs, etc.) included on electronic media;

(4) payments made for construction, installation, assembly, maintenance or technical support works related to factories, machine-building devices or equipment after they are exported from the Republic of Armenia, as well as other goods exported from the Republic of Armenia, where such payments are not included in the amount actually paid or payable for those goods.

 

Article 27.

Transaction value method of determining customs value of goods exported from the Republic of Armenia

 

1. In order to calculate the customs value of goods exported from the Republic of Armenia by the transaction value method, the declarant shall, along with the customs declaration, submit the following:

(1) a document on acquisition of goods which must contain information on the date of issue of the document, the serial number thereof, detailed description of the seller (consignor), buyer (consignee), the goods (name, the trademark or trade name, where available), information on pallets, quantities, unit of measurement, unit cost, weight, total cost, as well as the payment document or a document confirming the obligation to make future payment (letter of guarantee or another document agreed upon by the seller and the buyer);

(2) documents substantiating transportation, loading, unloading, transloading, insurance and other similar expenses incurred for the purpose of transportation up to the state border of the Republic of Armenia, where the obligation for incurring such expenses is borne by the buyer according to the terms of supply of goods.

2. Customs value of goods exported from the Republic of Armenia shall be determined by the transaction value method, where:

(1) the declarant has submitted the documents prescribed by part 1 of this Article;

(2) there are no restrictions on disposal or use of goods by the buyer, except for the restrictions that:

a. are prescribed by law; or

b. limit the geographical area wherein the goods may be resold; or

c. do not significantly affect the cost of acquisition of the goods concerned;

(3) the sale or price is not subject to any condition or compensation due to which the costs of acquisition of goods being evaluated may not be determined;

(4) any part of revenues from the future sale, disposal or use of goods by the buyer may not be transferred to the seller directly or indirectly, unless it is possible to make an appropriate adjustment pursuant to the provisions of Article 25 of this Law;

(5) the buyer and the seller are not related or where the buyer and the seller are related, but:

a. such relation has not affected the cost of acquisition of goods pursuant to the information submitted by the declarant; or

b. the cost of acquisition of goods acquired by the declarant is not at least 20 % lower or higher than the cost of acquisition of identical or similar goods exported from the Republic of Armenia within the same or almost the same time period and acquired from an unrelated person, the customs value whereof has been determined during their export in accordance with Article 29 or 30 of this Law; or

c. the customs value determined by the declarant is not at least 20 % lower or higher than the cost of identical or similar goods determined pursuant to Articles 29 or 30 of this Law; or

d. the customs value determined by the declarant is not at least 20 % lower or higher than the average customs value determined by the method provided for by this Article for the same or similar goods exported within the same or almost the same time period.

3. Customs authorities shall, while verifying the information provided for by this part, take into account the differences shown by the declarant among the levels of commercial transactions, the number of such transactions, as well as the expenses provided for by Article 25 of this Law during the calculation of the customs value which are incurred by the seller during the sale, when the seller and the buyer are not related, and which are not incurred by the seller during the sale when the seller and the buyer are related. Verification of such information shall be used upon the initiative of the declarant and only for the purpose of comparison and no values replacing customs values may be established as a result thereof.

4. Irrespective of the provisions prescribed by parts 1 and 2 of this Article, where customs authorities have grounds to believe that the documents submitted by the declarant are inaccurate or false, they shall use the information provided for by part 2 of Article 28 of this Law for the purpose of verifying the accuracy of such documents, by submitting in writing, in case of rejection provided for by Article 35 of this Law, information substantiating such rejection and the sources thereof.

 

Article 28.

Determining customs value of goods exported from the Republic of Armenia by customs authorities

 

1. When determining the customs value pursuant to Article 27 of this Law, in case it is impossible to determine the customs value due to the absence of the expenses prescribed by Article 25 and lack of the information provided for by Article 26 of this Law, the customs value shall be determined by the customs authorities in the order prescribed by Article 34 of this Law.

2. For the purpose of determining the customs value in accordance with point 1 of this Article and for the purpose of determining the customs value during import of goods, the customs authorities shall use both the information at their disposal and the information provided by the declarant, and the information obtained from the state bodies of the Republic of Armenia and foreign states, as well as from other sources not prohibited by law.

3. The procedure for provision of information by the state bodies of the Republic of Armenia to the customs authorities for the purpose provided for by this Article shall be prescribed by the Government.

 

Article 29.

Determining customs value of goods exported from the Republic of Armenia according to the transaction price for identical goods

 

1. The customs value of goods exported from the Republic of Armenia shall be determined based on the transaction value for identical goods sold in the same or nearly the same quantity in the same or nearly the same time period for the export, but no earlier than 90 calendar days before the assessed goods are imported into the customs territory of the Union, by making adjustments conditioned by the differences of commercial levels or the quantities of goods. Such adjustments must be based on existing facts, irrespective of the circumstance of increase or decrease of the transaction value as a result of the adjustment.

2. While making the adjustment, the differences between the transportation expenses and payments for goods transported by various vehicles from various distances, as well as those for identical goods observed shall be taken into account.

3. Where it becomes clear while applying this Article that there are more than one transaction values for identical goods, the lowest price from among those prices shall be taken as a basis for determining the customs value of the exported goods.

 

Article 30.

Determining customs value of goods exported from the Republic of Armenia according to the transaction price for similar goods

 

1. The customs value of goods exported from the Republic of Armenia shall be determined based on the transaction value for similar goods sold in the same or nearly the same quantity in the same or nearly the same time period for the export, but no earlier than 90 calendar days before the assessed goods are imported into the customs territory of the Union, by making the adjustments conditioned by the differences of commercial levels or the quantities of goods. Such adjustments must be based on existing facts, irrespective of the circumstance of increase or decrease of the transaction value as a result of the adjustment.

2. While making the adjustment, the differences between the transportation expenses and payments for goods transported by various vehicles from various distances, as well as those for similar goods observed shall be taken into account.

3. Where it becomes clear while applying this Article that there are more than one transaction values for similar goods, the lowest price from among those prices shall be taken as a basis for determining the customs value of the exported goods.

 

Article 31.

Determining customs value for goods exported from the Republic of Armenia based on the sales price of unit of goods in the domestic market of the Republic of Armenia

 

1. Where goods exported from the Republic of Armenia or the same or similar goods as compared with such goods are sold in the same form in the domestic market of the Republic of Armenia, their customs value shall be determined by the largest gross amount based on the sales price of a unit of those goods or the same or similar goods compared with such goods in the same or nearly the same time period taking into account the deductions referred to in part 2 of this Article and the increases referred to in part 3 of this Article.

2. Taxes and other mandatory payments subject to payment for sales in the Republic of Armenia shall be the deductions referred to in part 1 of this Article.

3. Expenses incurred for storage, transportation, insurance and other similar expenses of such goods within the territory of the Republic of Armenia shall be the increases referred to in part 1 of this Article.

4. The procedure for determining the largest gross amount shall be prescribed by the Government.

 

Article 32.

Determining customs value of goods exported from the Republic of Armenia according to the calculated value

 

1. The customs value of goods exported from the Republic of Armenia shall be determined based on their calculated value, which shall consist of:

(1) the value of materials used during the production of goods exported from the Republic of Armenia and the value of processing;

(2) the profit usually generated and general expenses incurred during the sale of the same type of goods specified by the producers for the export from the Republic of Armenia;

(3) transportation, loading, unloading, transloading, insurance and other similar expenses usually incurred for transporting goods of the same type up to the state border of the Republic of Armenia in the same or nearly the same quantity and in the same or nearly the same time period;

(4) commission and intermediary (brokerage) expenses usually incurred in the same or nearly the same time period for transportation of goods of the same type up to the state border of the Republic of Armenia in the same or nearly the same quantity, except for commissions and intermediary (brokerage) expenses incurred for acquisition of goods.

 

Article 33.

Fall-back method of determining customs value of goods exported from the Republic of Armenia

 

1. Where it is impossible to determine the customs value of goods exported from the Republic of Armenia based on the previous methods for determining the customs value prescribed by this Chapter, it shall be determined by other means that are in line with the principles and general provisions of the General Agreement on Tariffs and Trade, based on the information available in the Republic of Armenia. 2. When determining the customs value of goods in accordance with this Article, the following may not be taken as a basis:

(1) option envisaging approval of a customs value higher than the alternative customs values;

(2) production costs that are not included in the calculated values determined for the same or similar goods in accordance with Article 32 of this Law;

(3) minimum or maximum customs values;

(4) arbitrary values.

 

Article 34.

Order of application of the rules for determining customs value of goods exported from the Republic of Armenia

 

1. The rules for determining customs value, provided for by Articles 27-33 of this Law, shall be applied in order, except for the case referred to in part 2 of this Article.

2. Upon the request of the declarant, the order of application of the rules provided for by Articles 31 and 32 of this Law shall be changed. In case of absence of such request, the established order shall be applied. Where it is impossible to determine, upon such request, the customs value by applying the rule provided for by Article 32 of this Law, it shall be determined as provided for by Article 33 of this Law.

 

Article 35.

Disagreement with decisions adopted by the customs authority or official thereof with regard to determination of customs value of goods exported from the Republic of Armenia

 

1. In case the declared customs value or the method of its determination is not approved by customs authorities, the customs authorities shall, within the time limits prescribed by part 2 of this Article, draw up and provide the declarant with a rejection notice in the form established by the Committee, where the reasons for not approving the amount of customs value declared by the declarant and the method of determining it are substantiated, as well as the address of the customs authority or the official with which the declarant may file an appeal is indicated. Along with the rejection notice, the customs authorities shall submit to the declarant the amount of the customs value and the method of determining it, by also substantiating the impossibility to determine the customs value of goods according to the methods of determining customs value in the order provided for by Article 34 of this Law.

2. Before adopting a final decision on rejecting to calculate the customs value according to the transaction value method, but no later than within two working days following the submission by the declarant of the documents prescribed by Article 27 of this Law, the customs authorities shall submit in writing to the declarant the circumstances that hinder the approval of the customs value calculated according to the transaction value method and shall suggest the declarant to submit, in writing or electronically, additional documents or information within five working days, upon the examination whereof they shall, within one working day following the submission of the specified documents or information, render a decision on rejecting to calculate the customs value according to the transaction value method or shall approve the customs value submitted by the declarant.

3. In case the size of the customs value or the method of its determination is not approved by the customs authorities, the declarant may, within 10 working days after the receipt of the rejection notice, appeal as prescribed by Article 37 of the Law “On customs service” or through judicial procedure. The customs authority shall be obliged to render a relevant decision and notify the declarant thereof within 30 working days. Appealing shall not release the declarant from discharging liabilities related to the subject of appeal within the time limits prescribed.

 

SECTION 2

 

CUSTOMS FEES, SPECIAL ANTI-DUMPING AND COMPENSATION DUTIES

 

CHAPTER 6

 

GENERAL PROVISIONS ON CUSTOMS FEES, SPECIAL ANTI-DUMPING AND COMPENSATION DUTIES

 

Article 36.

Customs fees, special anti-dumping and compensation duties and benefits with regard thereto

 

1. Customs duty, value added tax, excise tax paid to customs authorities and state duty collected for the performance of customs operations shall be deemed to be customs fees.

2. Customs duties shall be calculated and paid for import of goods from states that are not members of the Union in accordance with the Treaty on the Union according to the rates of the Common Customs Tariff of the Union, except for the customs duties for import of goods provided for by Annex 4 to the Treaty on Accession to the Union, which may be calculated and paid according to the rates prescribed by the mentioned Annex, in accordance with the schedule approved by the same Annex.

3. Customs duty rate of 0 % shall be prescribed for goods exported from the Republic of Armenia. Other customs duty rates may be prescribed by law for goods exported from the Republic of Armenia.

4. Relations pertaining to payment of value added tax, excise tax paid to customs authorities, other taxes and fees subject to payment to the customs authorities shall be regulated by the Customs Code of the Union, the Tax Code of the Republic of Armenia and other laws of the Republic of Armenia.

5. Relation pertaining to payment of special, anti-dumping and compensation duties subject to payment to customs authorities shall be regulated by the Treaty on the Union, the Customs Code of the Union, other legal acts of the Union and this Law.

6. Tariff privileges in the form of exemption from payment of import customs duty or reduction of the rate of import customs duty shall be prescribed in accordance with Annex 6 to the Treaty on the Union.

7. In the case of goods being imported (imported) from third countries into the customs territory of the Union, tariff privileges may be applied also in other cases prescribed by the Treaty on the Union, the Treaty on Accession to the Union, international treaties of the Union concluded with third parties, and decisions of the Commission.

8. The Government may establish a procedure for the application of individual tariff privileges in the cases established by the Commission, as well as for the application of the privileges provided for by the international treaties concluded by the Republic of Armenia before 1 January 2015.

9. Tariff preferences shall be granted in accordance with the Treaty on the Union, international treaties of the Union concluded with third parties and international treaties concluded by the Republic of Armenia before 1 January 2015, by which application of the free trade regime is provided for.

10. Privileges for the payment of export customs duties may be prescribed by law.

11. Privileges for the payment of value added tax, excise tax paid to customs authorities and other taxes subject to payment to the customs authorities shall be prescribed by the Tax Code of the Republic of Armenia and law.

12. Privileges with respect to other fees subject to payment to customs authorities shall be prescribed by law.

13. Privileges with respect to the state duty for the performance of customs operations shall be prescribed by law.

 

Article 37.

Payers of customs duty, taxes, special, anti-dumping and compensation duties

 

1. The declarant or persons bearing the liability of paying customs duty and taxes pursuant to the Customs Code of the Union, laws of the Republic of Armenia, international treaties of Member States of the Union and this Law shall be deemed to be payers of customs duty, taxes and special, anti-dumping and compensation duties.

2. The liability for the payment of customs duty, taxes, special, anti-dumping and compensation duties shall be discharged by the persons prescribed by point 1 of Article 55 and point 1 of Article 73 of the Customs Code of the Union or persons authorised thereby.

3. In cases of liquidation of the organisation, termination of activities of an individual entrepreneur, re-organisation of the organisation in the process of bankruptcy, during the compulsory enforcement of judicial acts, the liabilities with respect to payment of customs duties, value added tax, excise tax paid to customs authorities, other taxes and fees subject to payment to the customs authorities may be discharged by other persons prescribed by the legislation of the Republic of Armenia.

 

Article 38.

Time limits for paying customs duty, taxes, special, anti-dumping and compensation duties

 

1. The time limits for payment of customs duty, taxes, special, anti-dumping and compensation duties shall be prescribed by the Customs Code of the Union and this Law.

2. In the case prescribed by Article 117 of the Customs Code of the Union, the customs duty, taxes, special, anti-dumping and compensation duties shall be paid before submitting a customs declaration.

3. In accordance with point 3 of Article 57 and the second paragraph of point 2 of Article 74 of the Customs Code of the Union, in the cases envisaged by the Commission, the time limit for the discharge of the liability for customs duty, taxes, special, anti-dumping and compensation duties for the goods placed under the customs procedure “Special” shall be established by the Commission, and in the cases established by the Commission — by law.

 

Article 39.

Procedure for payment of customs duty, taxes, special, anti-dumping and compensation duties

 

1. The procedure for payment of customs duty, taxes, special, anti-dumping and compensation duties shall be prescribed by Articles 61 and 74 of the Customs Code of the Union.

2. Customs duties, taxes, as well as special, anti-dumping and compensation duties may be paid before submitting a customs declaration, as prescribed by the Treaty on the Union, international treaties of the Union and this Law.

3. Pursuant to the Customs Code of the Union, the Tax Code of the Republic of Armenia, this Law and the Law "On state duty", forms (methods) of discharge of the liability for customs duty, value added tax, excise tax paid to customs authorities and state duty collected for the performance of customs operations, special, anti-dumping and compensation duties, environmental tax, road tax, customs duties and taxes paid to customs authorities by natural persons for goods of personal use at uniform rates and in the form of a lump sum customs fee, as well as interests and penalties calculated with respect thereto, fines entailed for violations of customs rules, and payment means thereof, as well as the time (day) of payment shall be established by the Government.

4. The procedure for paying the fees referred to in part 3 of this Article using electronic systems shall be established by the Government.

5. The import customs duty prescribed by the legal acts of the Commission shall be paid to the unified account prescribed by the Treaty on the Union opened with the Central Treasury of the Republic of Armenia.

6. The special, anti-dumping and compensation duties prescribed by the legal acts of the Commission shall be paid to the unified account prescribed by the Treaty on the Union opened with the Central Treasury of the Republic of Armenia. Preliminary special, preliminary anti-dumping and preliminary compensation duties prescribed by the Treaty on the Union shall be paid to the State Budget of the Republic of Armenia — to the relevant treasury account.

7. Value added tax, excise tax paid to customs authorities and other taxes and fees subject to payment to the customs authorities shall be paid to the State Budget of the Republic of Armenia — to the relevant treasury account.

8. Customs duties, taxes collected at the uniform rates for transportation of goods for personal use by natural persons across the state border of the Republic of Armenia or customs duties, taxes collected in the form of a lump sum customs fee shall be paid to the State Budget of the Republic of Armenia — to the relevant treasury account.

9. State duty collected for the performance of customs operations shall be paid to the State Budget of the Republic of Armenia — to the relevant treasury account.

10. Export customs duties provided for by the law of the Republic of Armenia shall be paid to the State Budget of the Republic of Armenia — to the relevant treasury account.

11. Import customs duties may be paid before submitting a customs declaration, as prescribed by this Law and the international treaties of Member States of the Union.

12. Special, anti-dumping and compensation duties prescribed by the Commission shall be paid as prescribed by Chapter 12 of the Customs Code of the Union.

13. Customs duty, taxes, as well as special, anti-dumping and compensation duties shall be paid to the State Budget of the Republic of Armenia in the currency of the Republic of Armenia.

14. In accordance with paragraph four of point 5 of Article 52 of the Customs Code of the Union, the customs entry receipt may be applied also for the purpose of accounting and payment of taxes and other fees subject to payment to the customs authorities, and state duty collected for the performance of customs operations.

15. In accordance with paragraph two of point 1 of Article 55 of the Customs Code of the Union, the liability with respect to the payment of import customs duty, taxes subject to payment to customs authorities may be discharged by the person authorised by the declarant.

16. In accordance with point 3 of Article 55 of the Customs Code of the Union, in case of failure to discharge or improper discharge of the liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties, the customs authority shall, on the day following the expiration of the time limits prescribed for the payment of customs duties, taxes, special, anti-dumping and compensation duties, or if such a day is not determined, on the day following the day of discovering the circumstance of failure to discharge or improper discharge of the liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties, send — electronically or by postal delivery, with an advice of delivery — a notice on the customs duty, taxes, special, anti-dumping and compensation duties not paid within the prescribed time limits to the declarant, as well as the persons referred to in paragraph one of point 1 of Article 55 of the Customs Code of the Union or part 15 of this Article, except for the cases referred to in points 4 and 5 of Article 55, as well as points 4 and 5 of Article 73 of the Customs Code of the Union.

17. The form of the notice referred to in part 16 of this Article, information contained therein shall be established by the Committee.

18. The time limit for the fulfilment of the requirements prescribed by law, presented by the notice referred to in part 16 of this Article, shall be prescribed 10 working days after receiving the notice.

19. In accordance with point 5 of Article 55 and point 5 of Article 73 of the Customs Code of the Union, the notice prescribed by part 16 of this Article shall not be sent to the persons referred to in part 15 of this Article, where:

(1) before sending the notice, the customs authority has information on recognising the liability referred to in part 15 of this Article as uncollectible as prescribed by law; or

(2) pursuant to the Customs Code of the Union, on termination of the liability referred to in part 15 of this Article; or

(3) in accordance with this Law and the Customs Code of the Union, customs authorities have started collecting the customs duty, taxes and other fees subject to payment to the customs authorities.

20. Import customs duties, taxes, special, anti-dumping and compensation duties shall be paid in cash or non-cash, taking into account the legislation of the Republic of Armenia on currency regulation.

21. In accordance with point 9 of Article 61 of the Customs Code of the Union, banks shall, based on the assignment submitted by the declarant, make the transfer of customs duty, taxes, special, anti-dumping and compensation duties pursuant to the legal acts of the Republic of Armenia regulating banking operations.

22. The discharge of the liability for payment of customs duty and taxes, special, anti-dumping and compensation duties of a liquidated organisation shall be placed on the liquidation commission of such organisation at the expense of monetary funds of such organisation, including funds generated from the sale of property. The liquidation commission shall be obliged to include the existing liability in the liquidation balance sheet.

23. The liability for the payment of customs duty, taxes, special, anti-dumping and compensation duties of a re-organised organisation shall be discharged by the legal successor(s) of the organisation, as prescribed by this Article.

24. In case of merger of organisations, the organisation emerged from the merger of such organisations shall be considered the legal successor in terms of discharging the liability for payment of customs duty, taxes, special, anti-dumping and compensation duties of the re-organised organisation.

25. In case of joining organisations, the organisation which the organisation has joined shall be considered the legal successor in terms of discharging the liability for payment of customs duty, taxes, special, anti-dumping and compensation duties of the re-organised organisation.

26. In case of division of an organisation, organisations emerged from such division shall be considered the legal successor in terms of discharging the liability for payment of customs duty, taxes, special, anti-dumping and compensation duties of the re-organised organisation, in accordance with the division balance sheet.

27. In case of separation of one or more organisations from the structure of an organisation, liabilities of the re-organised organisation for payment of customs duty, taxes, special, anti-dumping and compensation duties shall be transferred to each of the separated organisations, in accordance with the division balance sheet.

28. In case of re-organisation of an organisation, the organisation emerging from the re-organisation of such organisation shall be considered the legal successor in terms of discharging the liability for payment of customs duty, taxes, special, anti-dumping and compensation duties of the re-organised organisation.

 

Article 40.

Application of exchange rate

 

1. The calculation of liabilities with respect to determining the customs value of goods, payment of customs duty, taxes, special, anti-dumping and compensation duties shall be carried out in the currency of the Republic of Armenia.

2. For the purpose of re-calculating foreign currency, the average exchange rate formed in currency markets, announced by the Central Bank of the Republic of Armenia as of the day of registration of the customs declaration shall be applied, unless otherwise provided for by the legislation of the Union and of the Republic of Armenia.

 

Article 41.

Procedure for paying customs duty and taxes for goods placed under customs procedure "Release for domestic consumption" and conditionally released in the Republic of Armenia

 

1. Pursuant to sub-points 1 and 3 of point 1 of Article 126 of the Customs Code of the Union, in order for goods conditionally released into the territory of the Republic of Armenia under customs procedure "Release for domestic consumption" to acquire the status of goods of the Union, the payment of import customs duty, as well as taxes paid to the customs authorities, provided for by point 7 of Article 126 of the Customs Code of the Union, may be made by the declarant or the person authorised thereby or any other person having the right to legal possession of those goods.

2. Payment of the amounts of import customs duty, as well as taxes paid to the customs authorities, referred to in part 1 of this Article, shall be made by the persons referred to in the same part, based on the application submitted to the customs authority having carried out the conditional release of goods, in which notes on the following shall be made:

(1) the number of the customs declaration serving as a ground for conditional release of goods;

(2) the requisites of payment documents related to the payment of customs duty and taxes.

3. Import customs duties and taxes subject to payment to customs authorities for the goods referred to in sub-point 1 of point 1 of Article 126 of the Customs Code of the Union shall be paid in the amount equivalent to the amount of import customs duties, taxes, which have been conditionally calculated or not paid when releasing the goods under the customs procedure "Release for domestic consumption" for the purpose of applying privileges.

4. For the goods referred to in sub-point 3 of point 1 of Article 126 of the Customs Code of the Union, the amounts of additional liability of import customs duty and value added tax paid to customs authorities shall be paid, which shall be calculated as a positive difference between the amounts calculated at the rate set by the Unified Customs Tariff with respect to the goods placed under the customs procedure "Release for domestic consumption" and the amounts actually paid at the time of release of the goods.

5. The import customs duties and taxes subject to payment to customs authorities, provided for by the cases referred to in parts 1, 3 and 4 of this Article, shall be paid to the relevant treasury accounts provided for by this Law.

6. The payment of the import customs duties and taxes subject to payment to customs authorities, provided for in the cases referred to in parts 1, 3 and 4 of this Article, shall be approved by the customs authority by providing a payment receipt to the declarant or the authorised person thereof.

7. The form of the payment receipt and the procedure for completion thereof shall be established by the Committee. A note on the change in the status of the goods shall be made in the payment receipt. Pursuant to part 1 of this Article, no penalties shall be calculated against the amounts of customs duty and taxes subject to payment, if the persons have not violated the conditions prescribed by points 2-4 of Article 126 of the Customs Code of the Union.

 

Article 42.

Advance payments

 

1. Advance payments shall be prescribed by Article 48 of the Customs Code of the Union.

2. The declarant may make payments for customs duty, taxes, state duty collected for the performance of customs operations, special, anti-dumping and compensation duties at the expense of advance payments.

3. Advance payments may be transferred to the treasury account managed by customs authorities before submitting the customs declaration or the document replacing it.

4. During customs declaration of goods, the payment of customs duties, taxes, state duty collected for the performance of customs operations, interest, penalties with respect thereto, special, anti-dumping and compensation duties from the amounts of advance payments (monetary funds) may be made on the basis of the order of the declarant.

5. The following shall be considered as order of the declarant:

(1) submission of a customs declaration or an adjustment to a customs declaration thereby or on behalf thereof;

(2) submission of the application provided for by the second paragraph of point 4 of Article 277 of the Customs Code of the Union thereby;

(3) submission of an application thereby for refund or offset of advance payments for the purpose of investing monetary funds;

(4) submission of an application thereby for directing the advance payments to satisfy the liabilities having arisen as a result of failure to pay the customs duties, taxes, state duty collected for the performance of customs operations, interests, penalties with regard thereto, special, anti-dumping and compensation duties within the time limits prescribed.

6. The applications referred to in points 3 and 4 of part 5 of this Article shall be submitted to the customs authority in hard copy or electronically.

7. The form, structure of the applications referred to in points 3 and 4 of part 5 of this Article and the procedure for submitting them shall be established by the Committee.

8. The advance payments prescribed by this Article may also be used for the purpose of payment of customs duty, taxes and state duty collected for the performance of customs operations subject to payment, other fees subject to payment to customs authorities for the goods imported by natural persons for personal use, as well as a security for payment of customs duties, taxes and state duty collected for the performance of customs operations subject to payment, special, anti-dumping and compensation duties and other fees for the goods imported by natural persons for personal use referred to in this part.

9. In accordance with point 5 of Article 48 of the Customs Code of the Union, the declarant shall, via the automatic customs declaration system or in hard copy, submit an application to the customs authorities in the form established by the Committee for receiving a report on the use of advance payments, where the payment of customs duty, taxes, state duty collected for the performance of customs operations, other fees subject to payment to customs authorities, as well as special, anti-dumping and compensation duties has been made by customs authorities, at the expense of advance payments.

10. The form of the report provided for by part 9 of this Article shall be established by the Committee, and the customs authority shall provide such report to the declarant in hard copy or electronically, within a period not exceeding five working days from the day of submitting the relevant application.

11. Advance payments not requested shall be disposed of by the declarant. The declarant may receive back the advance payments not having been used thereby, if there are no overdue liabilities with respect to payment of customs duties, taxes, state duty collected for the performance of customs operations and other fees subject to payment to customs authorities, as well as special, anti-dumping and compensation duties, the levy in execution whereof shall be carried out by customs authorities. In case of such overdue liabilities, the balance amounts of advance payments may be returned to the declarant after the levy in execution by the customs authorities, in accordance with this part.

12. Advance payments may be directed to securing the discharge of liabilities for customs fees, special, anti-dumping and compensation duties and other fees subject to payment to customs authorities by means of investing monetary funds.

13. In accordance with part 12 of this Article, advance payments shall be transferred to the relevant treasury account managed by the customs authorities.

 

CHAPTER 7

 

STATE DUTY COLLECTED FOR THE PERFORMANCE OF CUSTOMS OPERATIONS

 

Article 43.

State duty collected for the performance of customs operations

 

1. State duty collected for the performance of customs operations shall be a mandatory fee prescribed by sub-point 5 of point 1 of Article 46 and Article 47 of the Customs Code of the Union, paid to the State Budget of the Republic of Armenia in the manner and amount prescribed by the Law "On state duty", for the performance of customs operations, customs escort, temporary storage of goods, completion of customs declarations based on the application submitted by the declarant, as well as issuing preliminary decisions.

2. The types and rates of the state duty collected for the performance of customs operations, the payers of the state duty for the performance of customs operations, the taxable object, the calculation base, the arising and termination of the obligation to pay, the time limits for payment of the state duty collected for the performance of customs operations, the procedure for their calculation, payment, levy in execution and refund (offset), as well as privileges with regard to state duty collected for the performance of customs operations shall be prescribed by the Law "On state duty".

 

CHAPTER 8

 

CHANGE OF TIME LIMITS FOR PAYMENT OF CUSTOMS DUTY AND TAXES

 

Article 44.

Change of time limits for payment of customs duty and taxes

 

1. Change of time limits for payment of import customs duty, taxes shall be the postponement or deferral of the time limits for payment of import customs duty, value added tax paid to customs authorities and excise tax.

2. Change of the time limits for payment of customs duty shall be made in the form of postponed payment or deferred payment, in case of existence of the grounds and conditions prescribed by Chapter 8 of the Customs Code of the Union.

3. Conditions of, grounds and procedure for changing the time limits for payment of taxes shall be prescribed by the Tax Code of the Republic of Armenia.

 

Article 45.

General conditions of changing time limits for payment of customs duty

 

1. Postponement of payment of import customs duty shall be the provision of an opportunity to the declarant or the authorised person thereof to pay the import customs duty later than the prescribed time limit for goods placed under the customs procedure "Release for domestic consumption".

2. Deferred payment of customs duty shall be the provision of the opportunity to the declarant or the authorised person thereof to make a payment of customs duty in instalments after the prescribed time limit.

3. The opportunity for postponement of payment or deferred payment of customs duty shall be provided for the time limits prescribed by points 1, 2 and 3 of Article 59 of the Customs Code of the Union.

4. The opportunity for postponement of payment or deferred payment of customs duty may be provided only in case of availability of the securities provided for by Chapter 9 of the Customs Code of the Union.

5. In case of import of goods into the Republic of Armenia, the interests provided for by Article 60 of the Customs Code of the Union shall be calculated for the change of the time limits for customs duties, in the amount prescribed by Article 47 of this Law.

6. Postponement of the time limits for payment of import customs duties or deferred payment thereof shall be provided to the declarant in accordance with Articles 58, 59 and 60 of the Customs Code of the Union, based on the decision of the customs authority.

7. The procedure for adopting and annulling the decision by the customs authority on the postponement of the time limit for payment of import customs duty or deferred payment thereof referred to in part 6 of this Article shall be established by the Government.

8. The decision on providing or rejecting the opportunity of postponement of the payment of import customs duty or deferred payment thereof shall be adopted no later than within five working days from the day of submission of the application.

9. The decision on providing or rejecting the opportunity of postponement of the payment of import customs duty or deferred payment thereof shall be submitted electronically or in hard copy to the person having submitted the application.

10. The decision provided for by part 6 of this Article shall contain the time limit for which the opportunity of postponement of the payment of import customs duty or deferred payment thereof is provided, whereas in case of rejection the decision shall contain the reasons for rejection.

11. The written decision on providing the opportunity of deferred payment shall also contain the schedule for paying the import customs duty.

12. In accordance with paragraph two of point 4 of Article 59 of the Customs Code of the Union, the payer of import customs duties shall submit to the customs authorities documents substantiating the postponement of the payment of import customs duties or deferral thereof from the following state administration bodies:

(1) in case of existence of the grounds prescribed by sub-point 1 of point 2 of Article 59 of the Customs Code of the Union — the state authorised body responsible for the policy for the sector of emergency situations of the Republic of Armenia;

(2) in case of existence of the grounds prescribed by sub-point 2 of point 2 of Article 59 of the Customs Code of the Union — the state authorised body responsible for the policy for the sector of finance of the Republic of Armenia;

(3) in case of existence of the grounds prescribed by sub-point 3 of point 2 of Article 59 of the Customs Code of the Union — the relevant competent state body under international treaties;

(4) in case of existence of the grounds prescribed by sub-point 4 of point 2 of Article 59 of the Customs Code of the Union — the state authorised body responsible for the policy for the sector of agriculture of the Republic of Armenia;

(5) in accordance with sub-point 5 of point 2 of Article 59 of the Customs Code of the Union, in the cases envisaged by the Commission — the state administration body authorised in the relevant sector;

(6) in case of existence of the ground for using goods imported into the customs territory of the Union, including raw materials, materials, technological equipment, their complementary parts and spare parts in industrial processing, prescribed by point 3 of Article 59 of the Customs Code of the Union — the state authorised body responsible for the economic policy of the Republic of Armenia.

 

Article 46.

Failure to provide postponement of time limits for payment of import customs duties or deferral thereof

 

1. In accordance with point 6 of Article 59 of the Customs Code of the Union, the customs authority may reject the rendering of the decision prescribed by Article 45 of this Law on postponement of time limits for payment of import customs duties or deferred payment thereof based on the application submitted by the declarant, in the following cases:

(1) if the declarant has overdue liabilities with respect to customs and other fees;

(2) if there are proceedings instituted against the declarant or the transactions made thereby;

(3) if actions for declaring the bankruptcy of the declarant are carried out;

(4) if the time limit for foreign economic activities carried out by the declarant does not exceed one year as of the day of submission of the application for postponement of time limits for payment of the import customs duty or deferred payment thereof.

 

Article 47.

Interests

 

1. Interest shall be paid in case of issuing a decision of the customs authority on providing the opportunity of postponement of the payment or deferred payment of import customs duties, taxes in the amount of 1/360 of the bank reference rate (re-financing rate) established by the Central Bank of the Republic of Armenia for each day of postponement or deferral. When accruing interests for postponement of payment of import customs duties and taxes or deferred payment thereof, the re-financing rate shall be applied, which shall be valid during the relevant periods of actual use of the opportunity of postponing payment or deferred payment.

2. In case of postponement of payment of import customs duty and taxes, interests shall be paid no later than within one working day after the expiry of the postponement period.

3. In case of deferred payment of import customs duties and taxes, interests calculated by the customs authorities may be paid in stages, in accordance with the schedule provided for by part 10 of Article 45 of this Law, but no later than within one working day after the expiry of the entire period of deferred payment.

4. In the cases provided for by point 2 of Article 138, point 6 of Article 174, point 2 of Article 175, point 8 of Article 198, point 10 of Article 208, point 7 of Article 216, points 9 and 15 of Article 225, point 3 of Article 226, point 7 of Article 241 and point 6 of Article 247 of the Customs Code of the Union, interests shall be paid in accordance with Article 60 of the Customs Code of the Union and this Article.

 

CHAPTER 9

 

SECURING PAYMENT OF CUSTOMS DUTY, TAXES, SPECIAL, ANTI-DUMPING AND COMPENSATION DUTIES

 

Article 48.

Means of securing payment of customs duty, taxes, special, anti-dumping and compensation duties

 

1. Security of payment of customs duty, taxes, special, anti-dumping and compensation duties shall be carried out by the means prescribed by point 1 of Article 63 of the Customs Code of the Union and this Law.

2. Pursuant to point 2 of Article 63 of the Customs Code of the Union, the guarantee issued by banks and credit organisations licensed as prescribed by the legislation of the Republic of Armenia, as well as the insurance carried out as per class of provision of guarantee by insurance companies, which is provided as prescribed by Article 52 of this Law, shall also be means of securing the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties for goods imported into the territory of the Republic of .

3. In accordance with point 3 of Article 63 of the Customs Code of the Union, carriers registered in the territories of foreign states shall provide security of discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties only by the means prescribed by sub-points 1 and 2 of point 1 of Article 63 of the Customs Code of the Union, as well as part 2 of this Article.

4. Forms of documents on acceptance of the security provided for by the Customs Code of the Union and this Law and the procedure for the use thereof shall be approved by the Committee.

 

Article 49.

General conditions for securing payment of customs duty, taxes, special, anti-dumping and compensation duties

 

1. Security of the payment of customs duty, taxes, special, anti-dumping and compensation duties shall be carried out in accordance with the Customs Code of the Union, international treaties of Member States of the Union, as well as this Chapter.

2. Security of the payment of customs duty, taxes, special, anti-dumping and compensation duties may be envisaged for single use or multiple uses.

3. Single use security of the payment of customs duty, taxes, special, anti-dumping and compensation duties shall be provided for goods in the same consignment transported by a single consignor in the name of a single consignee, based on the same foreign trade agreement.

4. The amount of security of payment of customs duty, taxes, special, anti-dumping and compensation duties shall be determined pursuant to the Customs Code of the Union and this Law.

5. The Government may establish the list of goods for which, pursuant to point 7 of Article 65 and point 7 of Article 75 of the Customs Code of the Union, fixed amounts for discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties, as well as values of the specified fixed amounts shall be established.

6. Security of the payment of customs duty, taxes, special, anti-dumping and compensation duties shall be carried out by persons provided for by this Law and the Customs Code of the Union, and in case of transportation of goods under customs procedure "Customs transit", it may be carried out by other persons having the right to possess, use or dispose of transit goods.

7. Security of the payment of customs duty, taxes, special, anti-dumping and compensation duties shall be provided to the customs authority that carries out the release of goods, except for the cases prescribed by the Customs Code of the Union and this Law.

8. Security of the payment of customs duty and taxes during the transportation of goods under customs procedure "Customs transit" may be provided to the customs authority of place of departure or the customs authority of the place of destination.

9. Security of the payment of customs duty, taxes, special, anti-dumping and compensation duties shall not be accepted by customs authorities in the cases prescribed by the Customs Code of the Union and this Law.

10. In accordance with sub-point 3 of point 1 of Article 177 of the Customs Code of the Union, customs authorities shall not be provided with security of the payment of export customs duty during the export of goods from the territory of the Republic of Armenia under customs procedure "Export".

11. Additional cases of non-provision of security of discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties, as well as the conditions, in observance of which no such security is required to provide, shall be prescribed by law.

12. Security of the payment of customs duty, taxes, special, anti-dumping and compensation duties shall be provided to customs authorities in accordance with point 1 of Article 62 and point 1 of Article 75 of the Customs Code of the Union.

13. The amount of security of the payment of customs duty, taxes, special, anti-dumping and compensation duties shall be calculated and provided in the currency of the Republic of Armenia.

14. Where the declarant fails to discharge the liability with respect to customs duties, taxes, special, anti-dumping and compensation duties within the time limit prescribed by the Customs Code of the Union, the customs authority shall — on the working day following the day of expiry of the time limit for discharge of the specified liability — send a notification to the declarant, persons having provided the securities prescribed by sub-points 2 and 3 of point 1 of Article 63 of the Customs Code of the Union and part 2 of Article 48 of this Law on the need to discharge the liability for payment of customs duty, taxes, special, anti-dumping and compensation duties.

15. The form of notification referred to in part 14 of this Article shall be established by the Committee.

16. The customs authority shall set the time limit for discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties to be 10 working days from the day of sending the notification referred to in part 14 of this Article.

17. The notification sent in accordance with part 14 of this Article shall also cover the information on the liability for payment of penalties and fines calculated with respect to unpaid liabilities for customs duty, taxes, special, anti-dumping and compensation duties.

18. The time limit referred to in part 16 of this Article may be extended by the customs authorities for another 10 working days, based on the substantiated application of the declarant or the person having provided relevant security to the declarant. The specified extension may not serve as a ground for discontinuance of calculation of penalties or fines for breach of the time limit for payment of customs duty, taxes, special, anti-dumping and compensation duties prescribed by the legislation.

19. In case of failure to discharge the liability with respect to customs duty, taxes, special, anti-dumping and compensation duties within the time limit provided for by this Article, the customs authority shall — within one working day after the expiry of the specified time limit — file a statement of claim with the court to levy execution on the existing overdue liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties and collect penalties and fines for failure to pay them within the time limit prescribed by legislation.

20. In case of provision of security of the payment of customs duty, taxes, special, anti-dumping and compensation duties by the means prescribed by sub-point 4 of point 1 of Article 63 of the Customs Code of the Union, where the declarant fails to discharge the liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties within the time limit prescribed by legislation, customs authorities shall carry out activities for sale of the pledged property in accordance with the civil legislation of the Republic of Armenia. In the case specified, the liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties and the penalties and fines calculated for failure to pay them within the prescribed time limit shall be compensated at the expense of funds generated from the sale of the pledged property, and the residual funds shall be returned within five working days after receiving the application on returning those funds. Where the funds generated from the sale of the property pledged in accordance with this part are not sufficient to discharge the liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties, as well as penalties and fines, the liability not discharged at the expense of funds generated from the sale of the pledged property by customs authorities shall be calculated and set before the declarant or persons bearing joint liability therewith pursuant to the Customs Code of the Union upon a notification.

21. The documents certifying the provision of security for discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties by the means prescribed by sub-points 2, 3 and 4 of point 1 of Article 63 of the Customs Code of the Union, as well as part 2 of Article 48 of this Law shall be returned in the following cases:

(1) based on the application submitted by the declarant, where the specified security fails to secure the current liability with respect to payment of customs duties, taxes, special, anti-dumping and compensation duties — within five working days after receiving the application;

(2) where the specified time limit for security has expired, or where such circumstances have been disclosed, due to which the security may not be used for securing the liability with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties — within one working day following the expiry of the time limit or disclosure of the specified circumstances.

 

Article 50.

Multiple security of payment of customs duty, taxes, special, anti-dumping and compensation duties

 

1. A person regularly carrying out foreign economic activity across the state border of the Republic of Armenia may submit multiple security of payment of customs duty, taxes, special, anti-dumping and compensation duties to the customs authorities for all the transactions performed thereby during at least one year, in accordance with Article 64 of the Customs Code of the Union.

2. In the case prescribed by sub-point 1 of point 2 of Article 64 of the Customs Code of the Union, the multiple security shall be provided as prescribed by this Article.

3. In the case prescribed by sub-point 2 of point 2 of Article 64 of the Customs Code of the Union, the multiple security shall be provided in accordance with the Customs Code of the Union and international treaties of Members States of the Union.

4. The declarant shall provide the multiple security for discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties to the customs authority that accepts the customs declaration for the first consignment of goods imported under such security.

5. The information on the number of the document certifying the multiple security of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties, the amount secured thereby, the validity of that security, as well as other required information shall be entered into the electronic customs declaration system where separate registration of transactions conducted under such security is done.

6. During customs declaration, the customs authority shall check the possibility of use of multiple security via the electronic customs declaration system, by clarifying the security period, existence of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties under the security, only after which the customs authority shall accept the multiple security or request by a notification to provide new security, indicating in the notification the reasons for not accepting the multiple security.

7. During each import carried out under multiple security of customs duty, taxes, special, anti-dumping and compensation duties, the declarant shall provide the customs authorities with information on the number of the document certifying the multiple security of discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties.

8. The multiple security of customs duty, taxes, special, anti-dumping and compensation duties may be provided in the form of investment of monetary funds, suretyship, and insurance carried out as per class of provision of guarantee by insurance organisations, or bank guarantee.

9. The amount of the multiple security of customs duty, taxes, special, anti-dumping and compensation duties may, upon the person’s desire, be increased by making relevant amendments to the agreement on insurance carried out as per class of provision of guarantee by insurance organisations, investment of funds, and suretyship.

10. The Government may, in accordance with point 4 of Article 64 of the Customs Code of the Union, establish the cases and conditions where the total amount of customs duties, taxes, the discharge of the liability for payment whereof is ensured by multiple security, exceeds the amount of the security submitted thereby.

11. The Government may also establish the amount provided for by this part.

 

Article 51.

Investment of monetary funds as a measure of securing the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties

 

1. For the purpose of securing the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties, monetary funds shall be credited to the relevant treasury account of the Republic of Armenia disposed of by the customs authorities.

2. Monetary funds for goods transported by natural persons for their personal use shall, as a measure of securing the payment of customs duty and taxes, be credited to the relevant treasury accounts of the Republic of Armenia.

3. In case of failure to discharge the liabilities with respect to fees of customs duty, taxes, special, anti-dumping and compensation duties, the customs authority shall be entitled to collect — as prescribed by this Law — the amounts corresponding to the non-discharged liabilities from the monetary funds invested as a measure of securing the payment of customs duty, taxes, special, anti-dumping and compensation duties.

4. As a confirmation of the credit of monetary funds to the relevant treasury accounts of the Republic of Armenia or credit to the unified treasury account, the person having invested the monetary funds shall be issued a receipt, the form of and procedure for use whereof shall be prescribed by the Committee.

5. The receipt provided for by this Article may not be transferred to another person. In case of loss of the receipt, the customs authority having issued it shall, based on the application of the person having invested the monetary funds, issue the duplicate of the receipt within one working day.

6. Non-used or partially used funds invested for the purpose of securing the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties may be offset to the discharge of liabilities with respect to customs fees and other fees subject to payment to the customs authorities based on the application of the person, and in case of absence of such liabilities — be refunded.

7. Three days before the collection of the amounts of customs duty, taxes, special, anti-dumping and compensation duties at the expense of the amount for multiple security of discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties, the relevant customs authority shall be obliged to notify thereof the person having submitted a multiple security.

 

Article 52.

Guarantee

 

1. For the purpose of securing the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties, the customs authorities may accept guarantees (insurance carried out as per class of provision of guarantee by insurance companies) which shall be provided by banks, credit organisations or insurance companies licensed as prescribed by the legislation of the Republic of Armenia.

2. Legal relations pertaining to provision of and requirements for a guarantee, termination of the obligations of the person having issued a guarantee and termination of a guarantee shall — with regard to regulations other than those provided for by this Law — be regulated by the Civil Code of the Republic of Armenia, the banking legislation of the Republic of Armenia, the legislation regulating insurance activities and other legal acts.

3. The declarant or the person authorised thereby shall ensure the irrevocability of a guarantee provided for the purpose of this Law. The following shall be indicated in the guarantee:

(1) liabilities of the payer of customs duty, taxes, special, anti-dumping and compensation duties (principal), the due discharge whereof shall be secured by the guarantee;

(2) the indisputable right of the customs authority to write off the amounts of customs duty, taxes, special, anti-dumping and compensation duties from the amount given by guarantee by the person having issued the guarantee in case of non-discharge of liabilities of the payers of customs duty, taxes, special, anti-dumping and compensation duties, secured by the guarantee;

(3) the obligation of the person having issued a guarantee to pay a penalty prescribed by this Law in case of delay of payment of customs duty, taxes, special, anti-dumping and compensation duties;

(4) (point repealed by HO-113-N of 28 February 2024)

(5) the validity period of the guarantee;

(6) the number of the licence for carrying out the relevant activity.

4. The validity period of the provided guarantee may not exceed 36 months and must be sufficient for the customs authority to submit a claim with respect to the guarantee to the person having issued a guarantee in case of non-discharge of the liabilities secured by the guarantee.

5. The guarantee must have entered into force at the moment of submission thereof to the customs authority.

6. The customs authority shall examine the guarantee within three working days following the receipt thereof, for the purpose of accepting or rejecting it.

7. The acceptance of the guarantee shall be rejected, where:

(1) the guarantee does not comply with the criteria provided for by the legislation of the Republic of Armenia or by part 3 of this Article;

(2) the total sum of the customs duty, taxes, special, anti-dumping and compensation duties secured with the guarantee is not sufficient for the payment of the amount of customs duty, taxes, special, anti-dumping and compensation duties subject to payment by the declarant;

(3) the period of the guarantee is less than the time limit for discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties by the declarant;

(4) the licence of the bank, credit organisation or insurance organisation having provided the guarantee, prescribed by law for carrying out the relevant activity, is missing;

(5) the decision on rejection has been rendered within the scope of exercising the discretionary powers vested in the customs authorities by law.

8. In case of rejecting to accept the guarantee, the customs authority shall, within the time limit prescribed by part 6 of this Article, notify thereof the person having submitted the guarantee, by indicating the grounds for rejection.

9. The customs authority shall return the guarantee based on the written application of the payer of customs duty, taxes, special, anti-dumping and compensation duties, where the liabilities secured by the guarantee have been discharged or terminated, or no liability has arisen.

10. In case of termination, by the Central Bank of the Republic of Armenia, of the validity of the licence for the right to carry out insurance activity of a bank, credit organisation or insurance organisation, the payer of customs duty, taxes, special, anti-dumping and compensation duties having submitted a guarantee from that bank, credit organisation or insurance company shall be obliged to submit, from the day of termination of the licence, a security of the payment of customs duty, taxes, special, anti-dumping and compensation duties to the customs authority from an organisation having the licence for the right to carry out the relevant activity. In case of failure to submit a guarantee or another measure of security of payment of customs duty, taxes, special, anti-dumping and compensation duties within the time limit prescribed by this part, the time limit for the payment of customs duty, taxes, special, anti-dumping and compensation duties by the person may not be extended.

(Article 52 amended by HO-113-N of 28 February 2024)

 

Article 53.

Suretyship

 

1. Suretyship shall be formulated by a contract on suretyship concluded between the customs authority and the guarantor. Legal relations pertaining to provision of and requirements for suretyship, termination of the obligations of the guarantor and termination of a contract on suretyship shall be regulated by the Civil Code of the Republic of Armenia and this Law.

2. In case of securing the payment of customs duty, taxes, special, anti-dumping and compensation duties by suretyship, the guarantor shall submit to the customs authority two copies of the contract on suretyship signed or concluded thereby as prescribed by the civil legislation of the Republic of Armenia, as well as the written consent of the payer of customs duty, taxes, special, anti-dumping and compensation duties on guaranteeing the payments of customs duty, taxes, special, anti-dumping and compensation duties by the guarantor.

3. The contract on suretyship must comply with the criteria prescribed by the legislation of the Republic of Armenia and must contain notes on the amount of liability secured by suretyship, joint liability of the payer of customs duty, taxes, special, anti-dumping and compensation duties, and the validity period of the contract on suretyship.

4. Security of the payment of customs duty, taxes, special, anti-dumping and compensation duties may not be carried out by the same contract on suretyship for a time period exceeding two years.

5. The customs authority shall examine the proposal on concluding a contract on suretyship within five working days following the submission of the documents to the customs authority.

6. In case of concluding a contract on suretyship, the customs authority shall provide the payer of customs duty, taxes, special, anti-dumping and compensation duties a receipt in the amount of the liability secured by suretyship.

7. The acceptance of the contract on suretyship shall be rejected, where:

(1) the submitted contract on suretyship does not comply with the criteria prescribed by the legislation of the Republic of Armenia or this Law;

(2) the sum secured with suretyship is not sufficient for the payment of the amount of customs duty, taxes, special, anti-dumping and compensation duties subject to payment by the declarant;

(3) the period of the contract on suretyship is less than the time limit for discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties;

(4) the decision on rejection has been rendered within the scope of exercising the discretionary powers vested in the customs authorities by law.

8. In case of rejecting the conclusion of the contract on suretyship, the customs authority shall, within the time limit prescribed by part 5 of this Article, notify thereof the person having proposed the contract on suretyship, by indicating the grounds for rejection.

9. The customs authority shall not incur the expenses related to the conclusion of a contract on suretyship.

 

Article 54.

Pledge of property

 

1. Pledge of property shall be formulated by a contract concluded between the customs authority and payer of customs duty, taxes, special, anti-dumping and compensation duties. Security of payment of customs duty, taxes, special, anti-dumping and compensation duties by pledge of property for the transportation of goods under the customs procedure "Customs transit" may also be submitted by the person having the right to possess or use or dispose of goods being collateral, in case of availability of the relevant document certifying the relevant power or the right of ownership to the collateral, certified through notarial procedure.

2. Legal relations pertaining to the conclusion of a contract of pledge of property, discharge of liabilities with regard to customs duty, taxes, special, anti-dumping and compensation duties secured by pledge, levy of execution on the pledged property, and termination of pledge shall be regulated by the civil legislation of the Republic of Armenia and this Law.

3. For the purposes of this Article, property which is collateral according to the civil legislation of the Republic of Armenia may be pledged, except for:

(1) property located outside the state borders of the Republic of Armenia;

(2) pledged property;

(3) animals and perishable goods;

(4) organisations;

(5) property rights;

(6) securities;

(7) goods in circulation;

(8) products and industrial wastes, free sale whereof is prohibited pursuant to the legislation of the Republic of Armenia;

(9) property, levy of execution whereon, pursuant to the legislation of the Republic of Armenia, is carried out exclusively upon the decision of the court.

4. The collateral must be located in the territory of the Republic of Armenia during the validity period of the contract of pledge.

5. In order to determine the market value of the collateral, appraisal of the collateral shall be carried out in accordance with the legislation of the Republic of Armenia.

6. For the purpose of securing the payment of customs duty, taxes, special, anti-dumping and compensation duties by pledge of property, the person shall, as prescribed by the civil legislation of the Republic of Armenia, submit to the customs authority two copies of the signed contract of pledge of property, as well as the original copies or the notary-certified carbon copies of documents confirming the title to the collateral and the market value thereof.

7. The contract of pledge of property shall include the following conditions:

(1) the person shall not have the right to dispose of the collateral without the consent of the customs authority;

(2) the pledgor shall be obliged to insure, at his or her expense, the collateral;

(3) the pledgor shall carry out the evaluation of the collateral at his or her expense;

(4) replacement of the collateral with other equivalent property formulated by an additional agreement attached to the contract of pledge of property shall be permitted upon the written consent of the customs authority;

(5) in case of levy of execution on the collateral, expenses incurred with regard to the sale thereof shall be compensated at the expense of monetary funds generated from the sale of the collateral, and in case of insufficiency thereof — at the expense of the pledgor;

(6) for the purpose of satisfying his or her claim, the pledgee shall have the right to levy execution on the collateral and realise it without applying to court, including to transfer the pledged property to the ownership of the pledgee or a third person indicated by the pledgee for the corresponding amount of the principal obligation, except for the collateral which is declared as property of significant historical, artistic or cultural value for the society by law or another legal act.

8. A contract of pledge of property may be concluded, where the market value of the collateral exceeds the necessary amount of security of discharging liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties by more than 20%.

9. The contract of pledge of property may be concluded by leaving the collateral with the pledgor or transferring it to the customs authority.

10. The customs authority shall examine the proposal on concluding a contract of pledge of property within the maximum of five working days following the receipt thereof.

11. In case of concluding a contract of pledge of property, the customs authority shall provide the pledgor with a receipt on the amount of the customs duty, taxes, special, anti-dumping and compensation duties secured by the pledge of property.

12. The customs authority shall reject the conclusion of the contract of pledge of property, where:

(1) the submitted contract of pledge of property does not comply with the criteria prescribed by the legislation of the Republic of Armenia or this Law;

(2) the sum secured with pledge of property is not sufficient for the payment of the amount of customs duty, taxes, special, anti-dumping and compensation duties subject to payment by the declarant;

(3) the period of the contract of pledge of property is less than the time limit for discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties;

(4) the decision on rejection has been rendered within the scope of exercising the discretionary powers vested in the customs authorities by law.

13. In case of rejecting the conclusion of the contract of pledge of property, the customs authority shall, within the time limit prescribed by part 10 of this Article, notify the person thereof, by indicating the grounds for rejection.

14. In case of failure to discharge the liabilities secured by the pledge of property, the amounts of customs duty, taxes, special, anti-dumping and compensation duties subject to payment shall be transferred to the state treasury account or the account defined by the international treaty of member states of the Union from the funds generated from the realisation of the property pledged as prescribed by law.

15. All expenses related to the conclusion of a contract of pledge of property and levy of execution on pledged property shall be incurred by the pledgor.

 

CHAPTER 10

 

REFUND, OFFSET OF CUSTOMS DUTY, TAXES, SPECIAL, ANTI-DUMPING AND COMPENSATION DUTIES

 

Article 55.

Refund, offset of amounts of customs duty, taxes, special, anti-dumping and compensation duties paid or collected in excess

 

1. The amounts of customs duty, taxes, special, anti-dumping and compensation duties paid or collected in excess shall be subject to refund or offset based on the application of the payer or the legal successor thereof, as prescribed by the Committee.

2. In observance of the provisions of Annex 5 to the Treaty on the Union, import customs duty shall be paid to the unified account prescribed by the international treaties of member states of the Union and may not be offset to the redemption of liabilities with respect to other fees, except for customs fees, penalties (interests), as well as special, anti-dumping and compensation duties. In observance of the provisions of Annex 8 to the Treaty on the Union, anti-dumping and compensation duties may not be offset to the redemption of liabilities with respect to other fees, except for customs fees, penalties (interests).

3. An application for refund or offset of customs duty, taxes, special, anti-dumping and compensation duties paid in excess to the treasury accounts of the Republic of Armenia shall be submitted to the customs authority.

4. A document confirming the payment or collection of customs duty, taxes, special, anti-dumping and compensation duties shall be submitted along with the application for refund or offset of the amounts of customs duty, taxes, special, anti-dumping and compensation duties paid or collected in excess to the treasury accounts of the Republic of Armenia.

5. Refund of customs duty, taxes, special, anti-dumping and compensation duties paid or collected in excess to the treasury accounts of the Republic of Armenia shall be done within 30 working days from the submission of the application prescribed by part 1 of this Article.

6. Refund of amounts of customs duty, taxes, special, anti-dumping and compensation duties paid or collected in excess to the treasury accounts of the Republic of Armenia shall be done to the bank account of the payer indicated by the person having submitted the application prescribed by part 1 of this Article or of the legal successor thereof.

7. Refund of amounts of customs duty, taxes, special, anti-dumping and compensation duties paid or collected in excess to the treasury accounts of the Republic of Armenia shall be done in the currency of the Republic of Armenia.

8. The form of the application for the refund and offset of amounts of customs duty, taxes, special, anti-dumping and compensation duties paid or collected in excess to the treasury accounts of the Republic of Armenia shall be approved by the Committee.

9. In accordance with point 2 of Article 67 and point 4 of Article 76 of the Customs Code of the Union, refund of amounts of customs duty, taxes, special, anti-dumping and compensation duties paid or collected in excess shall be done in the case when there are no overdue liabilities with respect to customs fees and other fees. In case of existence of such liabilities, the customs authorities may carry out redemption of the amounts of the mentioned liabilities at the expense of the security of the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties, after which the remainder of the funds shall be refunded to the declarant.

10. Refund of overpayments with respect to customs duty, taxes, special, anti-dumping and compensation duties shall be done in accordance with the provisions prescribed by the Customs Code of the Union, this Law and other legal acts, where:

(1) in the cases prescribed by sub-points 4, 5 and 6 of point 1 of Article 67 and sub-points 3, 4 and 5 of point 3 of Article 76 of the Customs Code of the Union, a document or information confirming the payment of customs duty, taxes, special, anti-dumping and compensation duties is submitted to the customs authorities;

(2) in the cases prescribed by sub-point 7 of point 1 of Article 67 and sub-point 6 of point 3 of Article 76 of the Customs Code of the Union, customs declarations in accordance with Articles 237 and 424 of the Customs Code of the Union are submitted to the customs authorities.

11. Advance payments transferred to the treasury accounts disposed of by the customs authorities, prescribed by the Customs Code of the Union and this Law, shall be refunded to persons having transferred them based on the application submitted thereby in the form prescribed by the Committee, within five working days following the submission of the application, where there are no liabilities with respect to customs fees and other fees.

12. In accordance with point 1 of Article 76 of the Customs Code of the Union, preliminary special, preliminary anti-dumping and preliminary compensation duties shall be refunded based on the application submitted by the declarant (payer), within five working days following the submission of the application, where there is no liability with respect to special, anti-dumping and compensation duties.

 

Article 56.

Other cases of refund of customs duty, taxes, special, anti-dumping and compensation duties

 

1. Refund of customs duty, taxes, special, anti-dumping and compensation duties shall be done also upon the permission of the customs authority, in case of change of the previously declared customs procedure, where the amounts of customs duty, taxes, special, anti-dumping and compensation duties subject to payment in case of placing goods under the new customs procedure are less than the amounts of customs duty, taxes, special, anti-dumping and compensation duties paid during the initial customs procedure, except for the case provided for by point 7 of Article 223 of the Customs Code of the Union.

 

Article 57.

Refund (offset) of monetary funds invested as security of payment of customs duty, taxes and anti-dumping duties

 

1. Refund (offset) of monetary funds invested as security of payment of customs duty, taxes and anti-dumping duties shall be done based on the application submitted by a person (his or her legal successor), as prescribed by the Committee.

2. Monetary funds shall be refunded (offset) based on the application submitted by the person having invested monetary funds (his or her legal successor). Three years after the formulation (hard copy or electronic) of the receipt of crediting monetary funds to the accounts provided for by this Law, the customs authority shall inventory-take the invested monetary funds and, in case no liabilities secured thereby have arisen, refund the monetary funds to the person having invested them.

3. In case the person having invested the monetary funds (his or her legal successor) is not known within the time limit prescribed by this Article, the unclaimed amounts shall be included in the non-tax other revenues of the State Budget based on the information of the customs authority and shall not be refunded.

4. Refund (offset) of monetary funds invested as security of payment of customs duty, taxes, special, anti-dumping and compensation duties shall be done within 30 working days following the submission of the application provided for by this Article.

5. The following shall be attached to the application for refund (offset) of monetary funds invested as security of payment of customs duty, taxes, special, anti-dumping and compensation duties:

(1) the payment receipt confirming the investment of the monetary funds;

(2) documents confirming the discharge (termination) of liabilities secured by the invested monetary funds.

6. Refund of monetary funds invested by a person having the liability to pay customs duty, taxes, special, anti-dumping and compensation duties or penalties as security of payment of customs duty, taxes, special, anti-dumping and compensation duties shall be made following the redemption of such liabilities.

7. The forms of the application for refund (offset) of monetary funds invested as security of payment of customs duty, taxes, special, anti-dumping and compensation duties and of the decision of the customs authority shall be approved by the Committee.

8. The Government may prescribe cases of not refunding (offsetting) special, anti-dumping and compensation duties, as well as monetary funds invested as security of the discharge of liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties.

 

CHAPTER 11

 

LEVY OF CUSTOMS DUTY, TAXES, SPECIAL, ANTI-DUMPING AND COMPENSATION DUTIES

 

Article 58.

General provisions on levy of customs duty, taxes, special, anti-dumping and compensation duties

 

1. In case of failure to discharge the liability for the payment of customs duty, taxes, special, anti-dumping and compensation duties in the manner and within the time limit prescribed by the legislation of the Republic of Armenia, their levy by the customs authorities shall be carried out as prescribed by law and shall extend to the means of the payer of customs duty, taxes, special, anti-dumping and compensation duties mentioned in point 2 of Article 68 of the Customs Code of the Union or goods for which those customs duties, taxes, special, anti-dumping and compensation duties have not been paid.

2. Before taking measures for levy of customs duty, taxes, penalties and interests calculated with respect thereto, special, anti-dumping and compensation duties, the customs authority shall, as prescribed by Article 39 of this Law, send a notification on making the payment of customs duty, taxes, penalties with respect thereto, interests, special, anti-dumping and compensation duties to the payer of relevant fees, except for the cases prescribed by this Law.

3. The customs authorities shall indicate the following in the notification provided for by Article 39 of this Law:

(1) the basis for calculation of the customs fees, special, anti-dumping and compensation duties;

(2) the type, rate, amount, time limit for payment of the relevant fee;

(3) type, amount, sum, time limit for payment of interests, penalties;

(4) information on the liability provided for by the legislation of the Republic of Armenia for delaying the payment.

4. In case of existence of a joint liability for paying customs duty, taxes, penalties and interests calculated with respect thereto, special, anti-dumping and compensation duties of the declarant and another person, the notification on payment of customs duty, taxes, penalties and interests calculated with respect thereto, special, anti-dumping and compensation duties shall be submitted concurrently to the declarant and the other person, by making a note on joint liability in the notification.

5. In case of failure to discharge the liability for paying customs duty, taxes, penalties and interests calculated with respect thereto, special, anti-dumping and compensation duties within 10 working days following the submission of the notification provided for by Article 39 of this Law to the declarant or the person bearing joint liability by the customs authority, the levy thereof shall be carried out by the customs authorities as prescribed by law.

6. In case of refusal, by the payer of customs duty, taxes, special, anti-dumping and compensation duties, to accept the notification provided for by Article 39 of this Law, the customs authority shall start a process of levy of customs duty, taxes, penalties and interests calculated with respect thereto, special, anti-dumping and compensation duties within two working days after the fact of refusal to accept the notification becomes known to the customs authorities.

7. Levy of customs duty, taxes, penalties and interests calculated with respect thereto, special, anti-dumping and compensation duties shall not be carried out, where the claims with regard to the payment of customs duty, taxes, special, anti-dumping and compensation duties have not been submitted within three years after the discovery of the fact of failure to pay the customs duty, taxes, special, anti-dumping and compensation duties during the customs control following the day of the expiry of the time limit for the payment thereof or following the release of the goods specified in sub-point 1 of point 1 of Article 126 of the Customs Code of the Union.

8. In case the liability to pay customs duty, taxes, penalties and interests with respect thereto, special, anti-dumping and compensation duties arises in the territory of another member state of the Union, the customs duties, taxes, penalties and interests with respect thereto, subject to payment, shall be levied in accordance with the international treaty of the member states of the Union.

9. Collection of customs duty, taxes, special, anti-dumping and compensation duties shall be performed by the customs authority having released the goods or the customs authority that has been provided with a security of discharging liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties for the given goods, or by the customs authority having discovered the illegal transfer of the goods, at the expense of the value of the goods, unless relevant security or advance payments have been provided for them.

 

Article 59.

Penalties

 

1. The amounts prescribed by this Article, which the payer of customs duty, taxes, special, anti-dumping and compensation duties is obliged to pay in case of failure to pay or non-full payment of the customs fees within the time limits prescribed by the customs legislation of the Union or the legislation of the Republic of Armenia, as well as the state duty collected for the performance of customs operations shall be deemed to be penalties.

2. In case of delaying the payment of customs duty, taxes, special, anti-dumping and compensation duties, as well as the state duty collected for the performance of customs operations, a penalty in the amount of 0.04 % of the amount not paid in due time shall be collected from the payer for each overdue day.

3. The penalty prescribed for by this part shall apply to sums not paid in due time, for the whole period since their payment date, but for no more than 730 days.

4. No penalties calculated with respect to customs duty, taxes, special, anti-dumping and compensation duties shall be collected for the period of postponement or deferred payment provided for by this Law, the Customs Code of the Union and the Tax Code of the Republic of Armenia.

5. In case a failure to pay or non-full payment of customs fees is discovered by the result of the customs inspection, the penalties reflected in the customs inspection act provided for by Article 204 of this Law and in the decisions adopted in accordance therewith shall be calculated up to and including the day of completion of the inspection, but no more than the time limit prescribed by part 2 of this Article.

6. In case a failure to pay or non-full payment of customs fees is discovered by the result of the customs inspection and in case of failure to pay the penalties reflected in the customs inspection act and in the decisions adopted in accordance therewith within the time limits prescribed by Article 204 of this Law, the calculation of the penalties shall be resumed from the day following the expiry of the time limit prescribed by point 12 of Article 204 of this Law, but no more than the time limit prescribed by part 2 of this Article.

7. The payment, levy and refund of penalties shall be carried out as prescribed by the Customs Code of the Union or the legislation of the Republic of Armenia.

 

Article 60.

Levy of customs duty, taxes, special, anti-dumping and compensation duties primarily at the expense of goods for which customs duty, taxes, special, anti-dumping and compensation duties have not been paid

 

1. In the cases provided for by this Law, as well as in case of absence of monetary funds on the accounts of the payer, the customs authorities shall, as prescribed by Chapter 13 of the Law "On fundamentals of administration and administrative proceedings", have the right to levy the customs duty, taxes, penalties and interests with respect thereto, as well as special, anti-dumping and compensation duties primarily at the expense of sale of goods for which customs duty, taxes, special, anti-damping and compensation duties have not been paid, unless the given goods have the status of goods of the Union.

2. The disposal of the amounts generated as a result of the sale of goods provided for by this Article shall be carried out pursuant to this Law.

 

Article 61.

Levy of customs duty, taxes, special, anti-dumping and compensation duties at the expense of monetary funds provided as security, outstanding balance of overpaid customs duty, taxes, special, anti-dumping and compensation duties, and other property of the payer

 

1. Customs authorities shall have a right to levy the customs duty, taxes, penalties and interests calculated with respect thereto, special, anti-dumping and compensation duties at the expense of monetary funds provided as a security, outstanding balance of overpaid (collected) customs duty, taxes, special, anti-dumping and compensation duties, and other property of the payer.

2. For the purpose of collection, by the customs authorities, of overdue liabilities with respect to customs fees and other fees provided for by point 2 of Article 68 and point 3 of Article 77 of the Customs Code of the Union, the customs authority shall file a statement of claim with the court for levy in execution as prescribed by law.

3. The procedure for collection, by the customs authorities, at the expense of monetary funds provided as a payment security, in accordance with the Customs Code of the Union and this Law, of customs duty, taxes and other fees subject to payment to customs authorities, shall be prescribed by the Government.

4. Levy of monetary funds provided as a payment security, overpaid (collected) customs duty, taxes, special, anti-dumping and compensation duties shall be carried out from the relevant treasury account of the Republic of Armenia.

5. The customs authority shall, within five working days following the levy, inform — in writing — the payer of customs duty, taxes, special, anti-dumping and compensation duties about the levy of the amounts of customs duty, taxes, special, anti-dumping and compensation duties, penalties and interests calculated with respect thereto, special, anti-dumping and compensation duties at the expense of monetary funds provided as a payment security, overpaid (collected) customs duty, taxes, special, anti-dumping and compensation duties.

 

Article 62.

Declaring the liability of payment of customs duty, taxes, special, anti-dumping and compensation duties, as well as penalties and interests as uncollectible and writing them off for the purpose of levy

 

1. The liability for payment of customs duty, taxes, special, anti-dumping and compensation duties, as well as penalties and interests shall be declared as uncollectible and removed from registration upon availability of the following grounds:

(1) after liquidation, as prescribed by law, of a legal person or organisation not having the status of legal person;

(2) in case the legal person or natural person is declared bankrupt based on a court judgment, in the amount of the liability which has remained outstanding after carrying out all the measures of levy provided for by law;

(3) in case of death of a natural person or declaring him or her as dead or missing as prescribed by law;

(4) in case the term of the statute of limitations prescribed by law has expired, which shall be calculated from the day following the day of expiry of the time limit for discharge of the liabilities for payment of customs duty, taxes, special, anti-dumping and compensation duties, in accordance with point 3 of Article 337 of the Civil Code of the Republic of Armenia.

Within the meaning of this point, the term of statute of limitations shall be five years;

(5) in other cases prescribed by the Government.

2. Declaring the levy of the liability of one of the persons having joint liability for paying customs duty, taxes, special, anti-dumping and compensation duties as uncollectible shall not lead to declaring the liability of other persons having joint liability as uncollectible and writing them off.

3. The separated registration of liabilities declared as uncollectible with respect to customs duty, taxes, special, anti-dumping and compensation duties shall be maintained by the Committee.

4. The procedure for registration and removal from registration of liabilities terminated on the grounds prescribed by this Article, as well as the list of documents confirming the circumstances provided for by part 1 of this Article shall be prescribed by the Government.

 

SECTION 3

 

CUSTOMS OPERATIONS AND PERSONS PERFORMING THEM

 

CHAPTER 12

 

GENERAL PROVISIONS ON CUSTOMS OPERATIONS, ARRIVAL AND DEPARTURE OF GOODS

 

Article 63.

Procedure for performing customs operations

 

1. The uniform regulations on the performance of customs operations and persons performing them shall be prescribed by Chapter 13 of the Customs Code of the Union.

2. The sequence (technology) of performance of customs operations with respect to the part not regulated by the Customs Code of the Union and this Law shall be established by the Committee, in accordance with Article 78 of the Customs Code of the Union.

3. In accordance with point 3 of Article 82 of the Customs Code of the Union, customs authorities may, in the manner and in cases prescribed by the Commission, perform separate customs operations via information systems of the customs authorities without the involvement of customs officials.

 

Article 64.

Place and time of performing customs operations

 

1. In accordance with point 2 of Article 79 of the Customs Code of the Union, based on the substantiated application of the declarant, customs operations may be performed outside the defined places and working hours of customs authorities.

2. In case of submission of the application mentioned in part 1 of this Article on performing customs operations outside the defined places and working hours of customs authorities, the declarant shall bear a liability for ensuring relevant conditions for performing the mentioned operations, the information whereon shall be reflected in the application submitted thereby.

3. The cases of and procedure for performing customs operations outside the defined places and working hours of customs authorities shall be prescribed by the Committee.

 

Article 65.

Documents or information necessary for performing customs operations

 

1. Documents or information necessary for performing customs operations shall be prescribed by Article 80 of the Customs Code of the Union.

2. (part repealed by HO-113-N of 28 February 2024)

(Article 65 amended by HO-113-N of 28 February 2024)

 

Article 66.

Priority procedure for performing customs operations

 

1. Priority procedure for performing customs operations for certain categories of goods shall be established by Article 81 of the Customs Code of the Union.

2. In accordance with point 3 of Article 81 of the Customs Code of the Union, the list of categories of perishable goods for which the priority procedure for performing customs operations established by the Customs Code of the Union is applied shall be established by the Government prior to being established by the Commission.

 

Article 67.

The declarant

 

1. The list of persons having the right to act as declarant shall be defined by Article 83 of the Customs Code of the Union.

2. In accordance with point 2 of Article 83 of the Customs Code of the Union, a person of the Union who has concluded such a transaction with another person of the Union under which the goods are exported from the territory of the Union may act as a declarant.

3. In accordance with point 3 of article 83 of the Customs Code of the Union, a foreign person having a branch and registered as a taxpayer as prescribed by the tax legislation of the Republic of Armenia may act as a declarant in case of complying with the conditions defined by the second paragraph of point 1of Article 83 of the Customs Code of the Union, as well as in the case when that person transfers the goods across the customs border of the Union beyond the scope of a transaction concluded between the foreign person and the person of the member state of the Union, where the foreign person has the right to possess, use or dispose of the goods.

4. In accordance with point 5 of Article 83 of the Customs Code of the Union, the Government may define categories of persons who may act as declarant in case of placing the goods under a special customs procedure, as well as additional conditions in case of observance whereof such persons may act as declarant.

 

Article 68.

Customs operations related to arrival of goods

 

1. Customs operations related to arrival of goods shall be defined by Chapter 14 of the Customs Code of the Union.

2. In accordance with sub-point 2 of point 1 of Article 88 of the Customs Code of the Union, documents or information shall be submitted:

(1) within 12 hours after the arrival of goods transferred by air transport, and in case of arrival thereof outside working hours of the customs authorities — within eight hours from the start of the working time of the customs authority;

(2) within 12 hours after the arrival of goods transferred by railway transport, and in case of arrival thereof outside working hours of the customs authorities — within eight hours from the start of the working time of the customs authority.

3. In accordance with point 2 of Article 88 of the Customs Code of the Union, the documents or information prescribed by point 1 of article 88 of the Customs Code of the Union may be provided to customs authorities by the declarant or carrier or authorised persons thereof, as well as customs representatives.

4. In accordance with point 4 of Article 88 of the Customs Code of the Union, the customs authority shall, within an hour after receipt of the notification on arrival of goods, make a note in the electronic system or on the provided documents on the date and time of the arrival of goods.

5. In accordance with sub-point 2 of point 5 of Article 88 of the Customs Code of the Union, the procedure for transfer of goods from the place of arrival to the place of temporary storage may be established by the Government.

6. In accordance with point 9 of Article 88 of the Customs Code of the Union, in case of absence of appropriate conditions for temporary storage at places of arrival or in case of impossibility of delivery of goods to temporary storage places, the customs authorities may, on the basis of the substantiated application of a person, permit the storage of goods in other places.

7. In the case mentioned in part 6 of this Law, the customs authorities shall be provided with security for the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties subject to payment in case of placing those goods under the customs procedure "Release for domestic consumption", without taking into account the benefits and preferences with respect thereto.

8. In accordance with point 9 of Article 88 of the Customs Code of the Union, where in the cases defined by the Government the temporary storage of goods may be carried out in other places of temporary storage located outside the places of arrival, foreign goods may be transported from the place of arrival to the place of temporary storage in a customs convoy without being placed under the customs procedure "Customs transit".

9. Cargo operations provided for under Article 90 of the Customs Code of the Union may be performed after notifying the customs authorities thereof electronically or in hard copy, where they are performed without damaging the means of identification.

10. The Government may establish, in addition to the cases prescribed by this part, other cases when the cargo operations provided for under Article 90 of the Customs Code of the Union may be performed only through notification, without the permission of the customs authorities.

 

Article 69.

Customs operations related to departure of goods

 

1. Customs operations related to departure of goods shall be defined by Chapter 15 of the Customs Code of the Union.

2. In accordance with point 7 of Article 92 of the Customs Code of the Union, the documents or information prescribed by points 1 and 2 of Article 92 of the Customs Code of the Union may be provided to the customs authorities by the declarant or transporter or the authorised persons thereof, as well as customs representatives.

 

CHAPTER 13

 

TEMPORARY STORAGE OF GOODS

 

Article 70.

General provisions on temporary storage of goods

 

1. The temporary storage of goods shall be carried out in accordance with Chapter 16 of the Customs Code of the Union.

2. In accordance with point 8 of Article 98 of the Customs Code of the Union, the customs authorities may permit change of the place of temporary storage before the release of goods on the basis of the substantiated application of the declarant, if the possessor of the temporary storage warehouse has been removed from the Register of Possessors of Temporary Storage Warehouses or has ceased operations, or the permit of the customs authority to store goods in other places has been revoked, or there are no conditions for storing goods, or cargo spaces for opening the packages of goods, or the change of such place is due to the need of ensuring the most favourable conditions and opportunities necessary for storage of goods and customs control.

3. In the case mentioned in part 2 of this Article, the transportation of goods from the places of temporary storage may be performed without their placement under the customs procedure "Customs transit", in the manner and in cases prescribed by the Government.

 

Article 71.

Places of temporary storage of goods

 

1. Pursuant to Article 99 of the Customs Code of the Union, places of temporary storage shall be deemed temporary storage warehouses and the following other places of temporary storage (other places of temporary storage):

(1) the warehouse of the customs authority;

(2) the warehouse of the consignee, in cases provided for by Article 73 of this Law;

(3) the constructions, premises or open spaces of the authorised economic operator, provided for by this Law;

(4) separate constructions located at places of international postal deliveries, pursuant to part 2 of Article 181 of this Law;

(5) places of storage of not received or unclaimed baggage transported within the scope of a contract on transportation of passengers by air or railway transport;

(6) railways and container yards that are located at places agreed with customs authorities — within the territory of railway stations, and are envisaged for temporary storage of goods without unloading them from the means of transport;

(7) customs warehouses.

2. The place of temporary storage of goods shall be a customs control zone established in accordance with this Law.

3. In cases provided for by points 2 and 4-6 of part 1 of this Article, temporary storage of goods in other places shall be carried out upon the written permit of the customs authority. The permit for temporary storage of goods in other places of temporary storage may be single-use for the temporary storage of a certain consignment of goods, or multi-use — for the periodic temporary storage of foreign goods within a certain period of time.

4. The requirements for other places of temporary storage shall be established by the Committee. In case of incompliance of other places of temporary storage with the conditions provided for by this part, the customs authority may reject the issuance of the permit prescribed by this Article.

5. Liabilities of the consignee of goods when carrying out temporary storage of goods in the warehouse of the consignee, provided for by parts 4 and 5 of Article 73 of this Law, shall also be borne, on a joint and several basis, by the person having obtained a permit for the temporary storage of goods in the place of temporary storage of goods provided for by point 2 of part 1 of this Article.

6. The customs authority shall refuse to issue a permit for storage of goods in other places of temporary storage to a person, where that person has been subjected to administrative liability for administrative offences regarding the field of customs affairs twice or more times within one year before the day of applying to the customs authority, except for goods imported by railway transport, where their temporary storage on railways is carried out by the carrier.

7. The Government shall prescribe the procedure for submitting documents and information when handing over goods to a temporary storage warehouse and other places of temporary storage of goods, and handing over the goods and means of transport to a place of temporary storage and removing them from the mentioned place.

 

Article 72.

Customs formalities related to handing over goods to a temporary storage warehouse

 

1. Documents submitted for goods in case of handing them over to a temporary storage warehouse and the persons submitting those documents to the customs authorities shall be prescribed by point 1 of Article 100 of the Customs Code of the Union.

2. Documents necessary for handing the goods over to a temporary storage warehouse shall be submitted to the customs authority for handing the goods over to a temporary storage warehouse within the time limits prescribed by the Customs Code of the Union and this Law.

3. Pursuant to point 4 of Article 99 of the Customs Code of the Union, the handing goods over to a temporary storage warehouse for storage shall be certified by the protocol in the form prescribed by the Committee or through submitting accompanying documents to the customs authorities or using preliminary information as prescribed by Article 11 of the Customs Code of the Union, where there is an expression of will by the declarant on using such information.

4. In accordance with point 2 of Article 100 of the Customs Code of the Union, the procedure for registration by the customs authority of documents on locating goods in a temporary storage warehouse and for issuing certification of registration thereof as prescribed by this Law shall be defined by the Committee.

 

Article 73.

Temporary storage of goods in the warehouse of the consignee

 

1. Temporary storage of goods in the warehouse of the consignee may be carried out in the following cases:

(1) in case of handing over goods — requiring special storage conditions, having storage peculiarities or being dangerous (explosive, flammable, toxic) — for temporary storage;

(2) where the consignee of goods is a state body;

(3) where the transfer of goods to places of temporary storage is impossible due to weather or geographical conditions;

(4) in case of handing over goods for temporary storage due to technological, production or other need determined by the customs authority;

(5) in case there is a need of large dimensions or special conditions for loading and unloading of goods.

2. When issuing a permit for temporary storage of goods in the warehouse of the consignee of the goods, the customs authority shall be entitled to request payment of customs duty, tax special, anti-dumping and compensation duties or security of discharge of the liabilities with respect to the mentioned fees, except for cases when the consignees of goods are state bodies or institutions.

3. The permit for temporary storage of goods in the warehouse of the consignee of the goods may be single-use for the temporary storage of a certain consignment of goods or multi-use — for the periodic temporary storage of foreign goods within a certain period of time.

4. Storage of goods of third persons in the warehouse of the consignee of goods shall not be permitted.

5. The consignee of goods shall be obliged to ensure the conditions necessary for the storage of goods. Actions over goods temporarily stored in the warehouse of the consignee may be carried out upon the permission of the customs authority. The customs authority may place means of identification on the packaging of the goods or on the construction envisaged for the storage of those goods.

6. In case of loss of goods, transfer or handover thereof to third persons without the permission of customs authorities, the consignee of the goods shall be obliged to pay the customs duties, taxes, special, anti-dumping and compensation duties provided for by Article 103 of the Customs Code of the Union.

7. In case of absence of undischarged customs liabilities during the previous one year, the absence of facts of violations of the Customs Code, the temporary storage of goods in the warehouse of the consignee may be permitted for the time period prescribed by Article 101 of the Customs Code of the Union.

8. The Government shall prescribe the procedure for submitting documents and information when handing over goods and means of transport to the warehouse of the consignee, handing over goods and means of transport to a place of temporary storage and removing them from the mentioned place.

 

Article 74.

Storage of goods in temporary storage warehouses of customs authorities

 

1. Temporary storage warehouses of customs authorities shall be open warehouses and must comply with the requirements for warehouses set by law.

2. Relations arising during the storage of goods in temporary storage warehouses of customs authorities shall be regulated by this Law and other laws of the Republic of Armenia. In case of accepting goods for temporary storage, an official of the customs authority shall issue a receipt, in the form defined by the Committee, to the person handing the goods over for temporary storage.

 

Article 75.

Handover of goods, by customs authorities, for temporary storage

 

1. Customs authorities may hand over goods to temporary storage warehouses, in accordance with this Law.

2. In case the goods are handed over by customs authorities for temporary storage, a contract shall be concluded between the possessor of the warehouse and the customs authority, in accordance with the civil legislation of the Republic of Armenia.

3. In case the goods are handed over by customs authorities for temporary storage, expenses related to the storage shall be incurred at the expense of the State Budget of the Republic of Armenia.

 

Article 76.

Actions carried out over goods handed over for temporary storage

 

1. Actions carried out over goods handed over for temporary storage shall be prescribed by Article 102 of the Customs Code of the Union.

2. The actions prescribed by point 2 of Article 102 of the Customs Code of the Union may be carried out upon the permit of the customs authority.

3. In order to obtain the permit referred to in part 2 of this Article, the declarant shall submit an application to the customs authority, submitting the actions to which the goods being under customs control must be subjected, as well as information on the need, place and time limits of implementation thereof.

4. Having examined the application referred to in part 3 of this Article, the customs authority shall, within one working day, grant the relevant permit or reject the application on carrying out the actions submitted, by indicating the reasons of rejection in writing.

 

CHAPTER 14

 

CUSTOMS DECLARATION

 

Article 77.

General provisions on customs declaration

 

1. Goods and means of transport shall be declared in accordance with Chapters 17 and 37-43 of the Customs Code of the Union, the international treaties of the member states of the Union and this Law.

2. The customs declaration of goods must be carried out by the declarant or the customs representative.

3. For the purposes of reducing the time period of carrying out customs operations, as well as supporting persons in the process of customs declaration, the customs authorities may fill in customs declarations as prescribed by the Government on the basis of the application and documents submitted by the declarant.

 

Article 78.

Customs declarations

 

1. During customs declaration, for the purpose of placing goods and means of transport under customs procedures, in accordance with the Customs Code of the Union, the following customs declarations may be applied:

(1) declaration of goods;

(2) transit declaration;

(3) passenger customs declaration;

(4) declaration of means of transport.

2. Forms of customs declarations and procedures for filling them in shall be prescribed by the Commission.

3. The lists of necessary information indicated in the declaration of goods and transit declaration shall be prescribed by Articles 106 and 107 of the Customs Code of the Union.

4. The lists of necessary information indicated in the customs passenger declaration and declaration of means of transport shall be prescribed by the Commission.

5. Depending on the customs procedure, type of goods, persons transporting goods and type of means of transport, the information indicated in the declaration of goods and transit declaration may be reduced by a decision of the Commission or by this Law, in accordance with the decision of the Commission.

6. The Government may prescribe other cases in addition to the cases of submitting the customs declaration on paper carrier prescribed by the Customs Code of the Union and the Commission.

7. The structure and format of the electronic copy of the customs declaration, as well as the procedure for submission and use thereof shall be prescribed by the Commission.

8. The procedure for carrying out the customs declaration electronically and for access of persons not having the qualification of a professional carrying out customs formalities to the electronic customs declaration system shall be prescribed by the Government.

9. The Government shall, in accordance with point 6 of Article 105 of the Customs Code of the Union, define transport (transportation), trade or other documents as cases of and procedure for using customs declaration in the cases provided for by the decision of the Commission.

 

Article 79.

Documents submitted during declaration

 

1. In accordance with Article 109 of the Customs Code of the Union, documents confirming the information indicated in the declaration of goods shall not be submitted to the customs authority along with the declaration of goods, except for cases provided for by the Customs Code of the Union.

2. The list of documents submitted along with the declaration of goods may be reduced by the Government, depending on the customs declaration method (in writing, electronically), customs procedure, types of goods and persons transporting goods.

3. The customs authority shall be entitled to verify the compliance of carbon copies of documents submitted during the customs declaration with the originals thereof. After verification, the submitted documents shall be returned, within one working day, to the person having submitted them.

 

Article 80.

Place of declaration

 

1. Goods and means of transport that are not goods of the Union, except for cases prescribed by the legislation of the Union and the Republic of Armenia, shall be subject to declaration at the customs authorities as prescribed by the Customs Code of the Union.

2. Goods and means of transport of the Union, except for cases prescribed by the legislation of the Union and the Republic of Armenia, shall be subject to declaration at the customs authorities as prescribed by the international treaties of the Republic of Armenia.

3. Declaration of separate goods may be carried out at specialised customs authorities established as prescribed by this Law.

4. Declaration of separate goods or declaration of goods under certain customs procedure may be carried out at the centres of foreign economic activity established as prescribed by law.

5. Means of transport that are not loaded and those transporting only passengers shall be declared at customs authorities when crossing the customs border, except for air means of transport, which shall be declared at places of arrival, i.e. at airports.

 

Article 81.

Rights and responsibilities of the declarant

 

1. Rights and responsibilities of the declarant shall be prescribed by Article 84 of the Customs Code of the Union.

2. The declarant shall bear responsibility, as prescribed by this Law, for the failure to perform or improper performance of responsibilities thereof prescribed by the customs legislation of the Republic of Armenia and the Union.

 

Article 82.

Submitting, registering customs declarations and making amendments or supplements thereto

 

1. Customs operations relating to the submission of customs declaration and the procedure for implementation thereof shall be prescribed by Article 109 of the Customs Code of the Union.

2. The declarant shall submit the customs declaration to the customs authority in hard copy in case of written declaration, or via the automatic declaration system in case of electronic declaration.

3. The Committee shall prescribe the list of those sub-divisions of the customs authorities that are entitled to accept the customs declaration.

4. In case of submitting the customs declaration to the customs authorities in hard copy, the electronic copy thereof shall be submitted as well.

5. In case of submitting the customs declaration in hard copy, where the declarant may not submit the electronic copy of the customs declaration, the custom authority may, in accordance with point 5 of Article 109 of the Customs Code of the Union, based on the substantiated application of the declarant and on the ground of the customs declaration submitted thereby, create the electronic form of the customs declaration in the electronic system of the customs declaration.

6. The Government may, in accordance with the decision of the Commission, prescribe the list of goods, customs procedures and cases for which no electronic copy is required in case of submission of the declaration in writing.

7. During the submission of the customs declaration, the customs authority shall specify the serial number, date of submission of the customs declaration:

(1) in case of written declaration — through making a note, by the customs authority, on the declaration submitted;

(2) in case of electronic declaration — through the electronic customs declaration system.

8. Before the registration of the submitted customs declaration, in case of written declaration, the official of the customs authority, or in case of electronic declaration — the electronic system of the customs declaration shall carry out — within a maximum of an hour after submission — verification of accuracy of observance of the procedure for filling in the customs declaration, prescribed by the legislation of the Republic of Armenia and the Union. The customs authority shall reject the registration of the submitted declaration in case of availability of any one of the grounds provided for by Article 111 of Customs Code of the Union.

9. The written or electronic declaration filled in and signed by the declarant as prescribed by the legislation shall be registered by the customs authority, with regard whereto a serial number of registration shall be assigned to the declaration and the date shall be indicated.

10. In case of verification, by the customs authority, of the customs declaration submitted electronically, where the customs authority reveals a fact of double registration of the indicated declaration, it shall notify the declarant thereof. Where the declarant confirms the fact of double registration of the declaration or fails to submit information within an hour, the double-submitted declaration shall be rejected.

11. Upon submitting an electronic customs declaration, the declarant shall, upon the substantiated request of the customs authority, bear an obligation to submit the declared goods and the documents necessary for customs control for inspection. The declarant shall bear liability in the manner and amount prescribed by law for the failure to fulfil the obligation indicated in this part.

12. After the registration of the declaration, for the purpose of exercising customs control in the risk management system, a control act with the instructions for the implementation of measures for reducing the risks in accordance with the risk profiles shall be automatically formed, the instructions including wherein shall derive from the procedures for customs control.

13. Electronic copies of written declarations submitted along with them shall be entered into the electronic declaration system by the customs authority within one working day after registration.

14. The customs declaration shall be deemed to be a document of legal significance from the moment of registration thereof.

15. In case of declaration in hard copy, the declarant may also submit to the customs authorities the documents that serve as a basis for filling in the customs declaration along with the customs declaration of the goods and the document confirming the power of the person submitting the customs declaration provided for by point 7 of Article 109 of the Customs Code of the Union.

16. Before or after submitting the declaration of goods until the release of goods, the declarant may provide the customs authorities with the information on the origin of the goods, documents confirming the observance of prohibitions and restrictions, where the customs authority may not receive the information thereon or contained therein in accordance with point 2 of Article 80 of the Customs Code of the Union. The procedure for submitting the documents indicated in this part shall be defined by the Committee.

17. In case of declaration in hard copy, the declarant may also submit to the customs authorities the documents that serve as a basis for filling in the customs transit declaration along with the customs transit declaration and the document confirming the power of the person submitting the transit declaration provided for by point 8 of Article 109 of the Customs Code of the Union.

18. The Government may, in accordance with point 9 of Article 109 of Customs Code of the Union, reduce the list of documents submitted in parallel with the passenger customs declaration, in cases provided for by a decision of the Commission.

19. The Government may, in accordance with point 2 of Article 111 of the Customs Code of the Union, establish a shorter time limit for registration of the customs declaration or rejection of registration than the time limit established by point 2 of Article 111 of the Customs Code of the Union.

20. The Government shall, in accordance with point 3 of Article 111 of the Customs Code of the Union, define the procedure for registering declaration of goods, transit declaration, declaration of means of transport or rejecting the registration with respect to the part not regulated by the decision of the Commission.

21. The Government shall, in accordance with point 4 of Article 111 of the Customs Code of the Union, define the procedure for registering a passenger customs declaration or rejecting the registration thereof.

22. In accordance with point 6 of Article 111 of the Customs Code of the Union, in case the registration of customs declaration is rejected by the customs authority on the grounds prescribed by point 5 of Article 111 of the Customs Code of the Union, the possible option of correcting the reason for rejection shall be indicated in the notice on rejecting the registration of the customs declaration.

23. In accordance with point 9 of Article 111 of the Customs Code of the Union, the Committee shall define the peculiarities of the procedure for registering the customs declaration or rejecting the registration thereof by the customs authority in case of failure of the information systems used by the customs authorities related to technical issues, malfunction of means of communication (telecommunication network and the Internet), power cut while performing customs operations.

24. In accordance with the procedure defined by the Commission, where the declaration of goods has been submitted electronically, the adjusted customs declaration of goods and the documents confirming the amendments (supplements) to the information submitted in the declaration of goods may be submitted electronically or in the form of electronic documents, as prescribed by the Committee.

25. In case of making amendments or supplements to electronically submitted declaration of goods, adjusted declaration of goods, as well as declaration of customs value (in case of amending or supplementing the information on the customs value of goods) prescribed by the Board of the Committee, the documents confirming those amendments or supplements, including the documents confirming the payments of customs and other fees may be submitted by the declarant in the form of electronic documents via the information systems of the customs authorities, as prescribed by the Committee.

26. In accordance with the procedure defined by the Commission, the procedure for submission of the declaration of goods to the declarant in the form of an electronic document with amendments (supplements) made or the information on those amendments (supplements) via the information systems of the customs authority shall be defined by the Committee.

27. After the release of goods, the decision of the customs authority on making amendments to the declaration of goods, the adjusted customs declaration of goods, the electronic form thereof, whereas in case of amendment or supplement of the information submitted with regard to the customs value of goods — also the declaration on the customs value and the electronic form thereof shall be submitted to the declarant as prescribed by the Commission.

28. In accordance with the procedure defined by the Commission, in case of amending or supplementing the information submitted in the declaration of goods submitted electronically, the adjusted customs declaration of goods, whereas in case of amending or supplementing the information submitted with regard to the customs value of goods – also the declaration on the customs value may be submitted to the declarant electronically via the information systems of the customs authorities, as prescribed by the Committee.

29. After the release of goods, the examination of the application on making amendments (supplements) to the information declared in the declaration of goods and of the documents shall be conducted by the customs authorities within 30 calendar days from the day of registering those documents at the customs authority.

 

Article 83.

Preliminary customs declaration of goods

 

1. The preliminary customs declaration of goods shall be carried out in accordance with Article 114 of the Customs Code of the Union and this Law.

2. During the preliminary customs declaration of goods, the customs authority shall accept carbon copies of accompanying transport (transportation) or trade documents, signed by the declarant, or the information submitted electronically, included in those documents, which shall be compared with the originals of the documents submitted by the declarant to the customs authorities and with the information contained therein.

3. In case of deviation of actual indicators of the goods from the value, quantity or weight submitted in the preliminary declaration submitted based on transport (transportation) or trade documents, the declarant shall submit documents confirming changes thereof.

4. In case of revealing — after the import of goods into the customs territory of the Union — a deviation of the value, quantity or weight of goods submitted in the preliminary declaration, the declarant shall be entitled to recall the declaration submitted thereby, as prescribed by the Customs Code of the Union.

5. A preliminary declaration shall not be deemed to be a document having legal force and may be amended by the declarant or at the initiative of the customs authorities.

6. Where a preliminary customs declaration of goods is submitted to the customs authorities, on the basis of the substantiated application of the declarant, the placement and release of the goods may be carried out in customs control zones other than those located in the territory of the customs authorities having accepted the customs declaration.

In the case referred to in the first paragraph of this part, the procedure for placement and release of goods, as well as the sequence of actions carried by the customs authorities shall be defined by the Committee.

7. The Government may prescribe the cases when, during the placement of goods under the customs procedure, except for the customs procedure "Customs transit", the preliminary customs declaration shall be carried out mandatorily.

 

Article 84.

Incomplete customs declaration of goods

 

1. Incomplete customs declaration of goods shall be carried out in accordance with Article 115 of the Customs Code of the Union and this Article.

2. In accordance with point 4 of Article 115 of the Customs Code of the Union, the Government may define the list of goods to which the incomplete customs declaration shall not be applied.

3. In case of incomplete customs declaration, the declarant shall be obliged to submit a customs declaration with adjusted data within a time period not exceeding 30 working days after the registration of the incomplete customs declaration.

 

Article 85.

Periodic declaration of goods

 

1. Periodic declaration of goods shall be carried out in accordance with Article 116 of the Customs Code of the Union and this Article.

2. For customs purposes, the following shall be considered as one consignment:

(1) in case of export from the territory of the Union — supplies carried out by one person across the same state border crossing point and placed under the same customs authority within the scope of one foreign economic contract, irrespective of the quantity of separate supplies;

(2) in case of import into the territory of the Union — the same goods placed at the same customs authority within the scope of one foreign economic contract, irrespective of the quantity of separate supplies.

3. In case of submitting a periodic customs declaration, the regulatory legal acts in effect as of the day of registration of the declaration shall have effect.

4. During each supply provided for by the periodic declaration, the customs authority shall carry out record-registration and customs control of goods until the completion of the time period of the periodic declaration.

5. The customs authority shall reject the registration of the periodic declaration, where:

(1) the requirements prescribed by the Customs Code of the Union and this Law and for submitting the periodic declaration have not been observed;

(2) the declarant has outstanding liabilities with respect to customs duty, taxes, special, anti-dumping and compensation duties;

(3) the person has been declared bankrupt.

6. The Government may, in accordance with point 11 of Article 116 of the Customs Code of the Union, define the categories of goods to which periodic customs declaration shall not be applied.

7. The Government may, in accordance with point 12 of Article 116 of the Customs Code of the Union, establish additional conditions in case of observance whereof periodic customs declaration shall be applied.

8. In accordance with point 13 of Article 116 of the Customs Code of the Union, the Government may define the peculiarities of customs control exercised over goods declared by a periodic customs declaration.

 

Article 86.

Declaration of goods in a single consignment

 

1. Where goods in a single consignment are classified under different CN FEA codes so that their declaration-related costs are comparable with or exceed payable customs fees in accordance with the calculation made by the declarant, the customs authorities may, based on the written application of the declarant, allow to declare those goods by classifying them under the code of goods for which a maximum rate of customs duty is provided for by the customs legislation of the Republic of Armenia or the Union.

2. The Government shall define the cases of application of the provision prescribed by part 1 of this Article, the types of goods being declared and in kind quantities thereof.

 

Article 87.

Temporary customs declaration of goods

 

1. During the export of goods of the Union from the territory of the Republic of Armenia, accurate information about the quantity or customs value whereof may not be submitted, temporary customs declaration may be applied by submitting a temporary customs declaration.

2. The temporary customs declaration may be applied during the declaration of goods that are mineral fossils (metal mineral), natural oil, natural gas and electricity.

3. The Government may — in addition to the goods prescribed by the first paragraph of this part — prescribe a list of other goods during the declaration whereof the temporary customs declaration prescribed by this Article may by applied.

4. The temporary customs declaration does not exempt the declarant from the obligation to pay customs fees and other fees subject to payment to the customs authority, to observe the prohibitions and restrictions, as well as to observe the conditions of the chosen customs procedure and customs control prescribed by the Customs Code of the Union, this Law and other legal acts of the Republic of Armenia.

5. During the temporary declaration, the prohibitions and restrictions with respect to goods shall be applied as of the day of registration of the temporary customs declaration of goods.

6. Deliveries carried out within the scope of several transactions shall be allowed to be declared within the scope of one temporary customs declaration, where they are carried out by the same person, within the scope of the same customs procedure, irrespective of the difference between the transactions related to supply, pricing and payment conditions.

7. Where the buyer of the goods is not known as of the moment of submission of the temporary customs declaration, one temporary customs declaration shall be submitted for the goods being declared, provided that a separate full customs declaration shall be further submitted for each buyer.

8. When applying the provisions prescribed by parts 6 and 7 of this Article, the data shall not be completed in the relevant columns of the customs declaration, provided that they shall be further adjusted when submitting a full customs declaration.

9. Indicative information regarding the quantity of exported goods, the conditional customs value thereof may be completed in the temporary customs declaration of goods, which shall be calculated taking as a basis the quantity of goods subject to export, their consumer properties, quality and other conditions provided for within the scope of the supply transaction, as of the day of submission of the temporary customs declaration.

10. During the temporary customs declaration of goods, the rates of customs fees and other fees subject to payment to the customs authorities as of the day of registration of the temporary customs declaration and the exchange rate announced by the Central Bank of the Republic of Armenia as of that day shall be applied.

11. The export of goods in a quantity exceeding the quantity declared in the temporary customs declaration of goods shall not be allowed, except for the cases prescribed by the Customs Code of the Union.

12. Following the actual export of the goods declared in the temporary customs declaration from the territory of the Union, the declarant shall be obliged to submit one or more full customs declarations for the goods having been exported from the territory of the Union.

13. The full customs declarations shall contain reliable adjusted data on the declared goods, in particular by adjusting the indicative quantity or customs value of the exported goods declared in advance.

14. The time limit for submitting one or more full customs declarations shall be determined by the customs authorities based on the application of the declarant and taking into account the time limits for adjusting the information on the quantity of goods or the customs value thereof, which may not exceed the period of six-month calculated from the day of registration of the temporary customs declaration. On the basis of the substantiated application of the declarant, the customs authority may extend the time limit for submitting the full customs declaration(s) for a period of up to two months after the expiry of the time limit referred to in this part.

15. In case of violation of the time limits for submitting the full customs declaration(s) or failure to submit the declarations, the declarant shall bear liability in the amount, manner and within the time limits prescribed by law.

16. Refund of amounts previously paid with respect to taxes shall be made after the submission of the full customs declaration(s), on the basis of the actually exported goods and the customs value declared in the full customs declaration(s).

17. Where other data subject to submission in the declaration of goods are also changed during the submission of the full customs declaration, which do not cause changes in the information on the observance of prohibitions and restrictions, such changes shall be made when submitting the full customs declaration.

18. The quantity of full customs declarations may not be less than the quantity of transactions with respect to which the actual supplies have been made.

19. Where prior to the time limit for submitting the customs declaration, the goods declared upon the temporary customs declaration have not been exported from the territory of the Union, the temporary customs declaration shall be recalled as prescribed by Article 113 of the Customs Code of the Union.

 

Article 88.

Peculiarities of declaration of goods in an unassembled, dismantled, including non consolidated state during a certain period of time

 

1. Goods in an unassembled or dismantled, including non consolidated state, the transportation of which is planned to be carried out in several product consignments within the time period prescribed by this Article, may be declared under one CN FEA code.

2. Before the declaration of the goods provided for by part 1 of this Article, the declarant shall send a notification on the intended deliveries to the customs authorities electronically or in hard copy, attaching the decision on the classification of the goods adopted by the customs authorities.

3. The notification provided for by part 2 of this Article shall indicate the following:

(1) name and location of the declarant;

(2) number of the decision on the classification of goods and time limit of issue thereof;

(3) intended time limits for import or export of goods;

(4) place of collection and storage of goods in the territory of the Republic of Armenia;

(5) other information, at the discretion of the declarant, which may be significant for the customs control of the imported goods.

4. The form of the notification provided for by this Article shall be established by the Committee.

5. In case of declaration of goods with the peculiarities prescribed by this Article, the constituent parts of the goods must be imported into the territory of the Republic of Armenia within the scope of one transaction.

6. The time limit for submitting the customs declaration for the last component of the consolidated or completed goods shall be prescribed by point 8 of Article 117 of the Customs Code of the Union, and the customs authority may extend it for a period of another year on the basis of a justified application of the declarant, which shall be submitted to the customs authorities before until the expiry of the time limit prescribed by the Customs Code of the Union.

7. Irrespective of the time limit prescribed by part 6 of this Article, in case a need for additional extension arises, the customs authority may extend the time limit for transportation of the components of the goods for a period of one year each time, if the application is submitted before the expiry of the extended time limit, but for no more than the expiry of 5 years after the day of registration of the customs declaration submitted for the first component of the goods.

8. The procedure for extending the time limit for declaration of unassembled, dismantled, including non consolidated goods shall be established by the Committee.

9. In case of termination of the decision on the classification of unassembled, dismantled, including non consolidated goods, on the basis of the customs declaration of each component of the goods, the amounts of customs duty, taxes and other fees subject to payment to the customs authorities and the penalties calculated for paying them late shall be calculated and collected.

10. Peculiarities of the customs control exercised over unassembled, dismantled, including non consolidated goods shall be established by the Committee.

 

Article 89.

Peculiarities of declaration of goods of certain categories

 

1. Declaration of the goods provided for by point 8 of Article 104 of the Customs Code of the Union may be carried out by means of periodic declaration, by submitting a periodic declaration provided for by Article 116 of the Customs Code of the Union.

2. The Government may establish the peculiarities of the customs control of the goods provided for by part 1 of this Article.

3. The Government may, in accordance with Article 86 of the Customs Code of the Union, establish the procedure for performing customs declaration or other customs operations, as well as the possibility of payment of customs duties, taxes, special, anti-dumping and compensation duties for the goods that have been illegally transported across the customs border of the Union or the release whereof has not been carried out by the customs authorities in accordance with the Customs Code of the Union or this Law.

4. The peculiarities of the application of hard copies of goods and passenger declarations for express cargoes shall be established by the Government, in accordance with point 5 of Article 104 of the Customs Code of the Union.

 

CHAPTER 15

 

RELEASE OF GOODS

 

Article 90.

Release of goods

 

1. The release of goods shall be carried out by the customs authorities, in accordance with Chapter 18 of the Customs Code of the Union.

2. In case one consignment of goods includes several goods, the customs authority shall carry out the release of the goods for the release of which the conditions prescribed by the customs legislation of the Republic of Armenia and the Union have been met.

3. The release of goods shall be carried out by the customs authority having registered the declaration of goods. Upon the permission of the customs authority, the release of goods may be carried out by a customs authority other than the customs authority having registered the declaration of goods.

 

Article 91.

Grounds and conditions for release of goods

 

1. In case of meeting other conditions for the release of goods prescribed by the Customs Code of the Union and the legislation of the Republic of Armenia, the goods shall be released in case of availability of the envisaged licences, permits, warrants and other documents provided for by the legislation during the declaration, except for the cases provided for by this Law.

2. The Government may, in accordance with point 4 of Article 118 of the Customs Code of the Union, establish cases of and conditions for cancelling the release of goods in the cases provided for by the decision of the Commission.

3. The Committee may, in accordance with point 4 of Article 118 of the Customs Code of the Union, establish the procedure for performing customs operations aimed at cancelling the release of goods by the customs authorities under the part not regulated by the decision of the Commission.

4. In accordance with point 6 of Article 118 of the Customs Code of the Union, in case of availability of an information interaction system, the customs authority shall send a notification on the release of goods to the person performing temporary storage, within one hour after the decision on the release of goods is made.

5. In case of availability of a relevant information interaction system with the customs authorities, the notification prescribed by the first paragraph of this part may also be sent to other persons related to the declaration of goods, who shall sign a contract with the customs authority in the form established by the Committee.

6. In accordance with point 8 of Article 118 of the Customs Code of the Union, in the cases prescribed by the Customs Code of the Union, the decisions of the Commission, this Law and the Government, where transport (transportation), commercial documents on goods or other documents are used as customs declaration, relevant notes on the release of goods by the customs authorities, as well as on cancelling the release shall be made on the documents referred to in this part. The procedure for making notes by customs authorities on the release of goods and cancellation of release thereof referred to in this part shall be established by the Committee.

7. The official of the customs authority shall notify the declarant electronically or on a paper carrier of the decision of the Board of the Commission regarding the registration of the application submitted to the relevant customs authority, within one working day after the date of registration of the application referred to in this part.

 

Article 92.

Time limits for release of goods

 

1. The time limits for the release of goods shall be prescribed by Article 119 of the Customs Code of the Union.

2. In accordance with point 3 of Article 118 of the Customs Code of the Union, the Government may establish time limits shorter than the time limits for the release of goods.

3. The Government may, in accordance with point 3 of Article 118 of the Customs Code of the Union, establish the peculiarities of customs operations related to the release of goods at the places of arrival.

4. In accordance with point 9 of Article 119 of the Customs Code of the Union, the customs authority shall send a notification to the declarant or the customs representative regarding the extension of the time limit for the release of goods, by indicating in the notification the reason for the extension of the time limit for the release of goods, in accordance with the grounds prescribed by point 4 of Article 119 of the Customs Code of the Union.

 

Article 93.

Releaser of goods before submission of declaration of goods

 

1. The grounds and conditions for the release of goods before the submission of the declaration of goods shall be prescribed by Article 120 of the Customs Code of the Union.

2. In accordance with point 2 of Article 120 of the Customs Code of the Union, the release of goods under the customs procedures "Inward processing", "Free customs zone", "Free warehouse", as well as "Temporary import" by full conditional exemption from the payment of customs duty and taxes may be carried out before submitting the declaration of goods, in accordance with the provisions prescribed by Article 120 of the Customs Code of the Union.

3. The Government may establish the categories of goods the release of which may be carried out before submitting the customs declaration in case of placing the goods under the customs procedures "Inward processing", "Free customs zone", "Free warehouse", as well as "Temporary import" by full conditional exemption from the payment of customs duty and taxes.

4. The Government may, in accordance with point 10 of Article 120 of the Customs Code of the Union, establish the procedure for registration of the application submitted to the customs authorities for release before submitting the declaration of goods, or for rejecting the registration thereof, with respect to the part not regulated by the decision of the Commission.

5. The Government shall, in accordance with point 14 of Article 120 of the Customs Code of the Union, establish the list of goods for the release of which before submitting the declaration of goods it is not required to provide a security for discharging liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties.

6. The Government may, in accordance with point 20 of Article 120 of the Customs Code of the Union, before submitting the declaration of goods, establish the peculiarities of the release of goods in the cases provided for by the decision of the Commission or before establishing such peculiarities by the decision of the Commission.

 

Article 94.

Conditional release

 

1. Goods released in cases prescribed by Article 126 of the Customs Code of the Union shall be deemed to be conditionally released goods.

2. Goods released in accordance with part 3 of Article 7 of this Law shall also be deemed to be conditionally released goods.

3. In accordance with sub-point 2 of point 7 of Article 126 of the Customs Code of the Union, the compliance with the prohibitions and restrictions for the acquisition of the status of goods of the Union for goods conditionally released by the customs authorities upon the ground of part 2 of this Article shall be certified by submitting the relevant documents to the customs authorities within the time limit prescribed by part 3 of Article 7 of this Law.

4. The documents referred to in part 3 of this Article shall be submitted in an arbitrarily drawn up application, where the number of the declaration of conditionally released goods shall also be indicated. Upon the request of the declarant, the customs authority shall certify in writing the acceptance of the submitted documents or information.

5. The Government may, in accordance with point 9 of Article 126 of the Customs Code of the Union, establish additional cases of and procedure for conditional release of goods.

6. When exporting the conditionally released goods included in Annex 4 to the Treaty from the Republic of Armenia to countries that are not members of the Union, they shall be placed under the customs procedure "Export" in accordance with the peculiarities prescribed by part 7 of this Article.

7. In the case referred to in part 6 of this Article, goods shall retain the status of foreign goods, and in case of import of the mentioned goods under the customs procedure "Release for domestic consumption", in case of compliance with the conditions prescribed by point 2 of Article 236 of the Customs Code of the Union, the amounts of previously paid import customs duty for those goods shall be subject to deduction from the amounts of import customs duty subject to payment within the framework of the customs procedure "Release for domestic consumption".

8. After placing the conditionally released goods included in Annex 4 to the Treaty under the customs procedure "Free customs zone", as well as when importing goods made of the mentioned goods from the free economic zone to the territory of the Union, the amount of import customs duty previously paid for those goods shall be deducted from the liability of import customs duty subject to payment in case of identification of the given goods by the customs authorities.

 

Article 95.

Refusing the release of goods

 

1. In case the requirements and conditions for the release of goods prescribed by this Law and the Customs Code of the Union are not observed, the customs authority shall refuse the release of the goods.

2. When formulating the refusal to release the goods, the customs authority shall indicate the reasons for refusing to release the goods, in accordance with Article 125 of the Customs Code of the Union, as well as may indicate the possible options for eliminating the reasons for the refusal.

3. The Committee shall, in accordance with point 4 of Article 125 of the Customs Code of the Union, establish the procedure for performing customs operations related to the refusal to release the goods with respect to the part not regulated by the decision of the Commission.

4. The refusal to release the goods may be appealed as prescribed by the legislation of the Republic of Armenia.

 

Article 96.

Peculiarities of release of goods before the completion of verification of customs and other documents or information

 

1. The peculiarities of release of goods before the completion of verification of customs and other documents or information shall be prescribed by Article 121 of the Customs Code of the Union.

2. The Government may, in accordance to point 2 of Article 121 of the Customs Code of the Union, establish the cases when in case of release of goods before the completion of verification of customs and other documents or information, no security for the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties is provided to the customs authorities.

3. In accordance with point 3 of Article 121 of the Customs Code of the Union, where the declaration of goods is performed by a customs representative who meets the conditions prescribed by Article 405 of the Customs Code of the Union, no security for the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties shall be provided during declaration of goods in case of simultaneous observance of the following conditions:

(1) as of the date of adoption of the decision on not providing a security for discharging the liabilities, the liability of the persons represented by the customs representative existing with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties does not exceed:

for 2023 — 20 % of the security provided by the customs representative;

for 2024 — 35 % of the security provided by the customs representative;

for 2025 and subsequent years — 50 % of the security provided by the customs representative;

(2) as of the date of the adoption of the decision on not providing security for discharging liabilities with respect to the relevant fees, the customs representative has no overdue liabilities, and no levy or lien measures have been imposed on the security provided thereby to the customs authorities.

4. The procedure for adoption, by the customs authorities, of the decision on not providing a security for discharging the liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties or for rejecting such security shall be established by the Committee.

 

Article 97.

Suspension of release of goods containing objects of intellectual property

 

1. Release of goods containing objects of intellectual property shall be suspended in accordance with Article 124 of the Customs Code of the Union and this Article.

2. In accordance with point 9 of Article 124 of the Customs Code of the Union, the decision on suspending the release of goods containing objects of intellectual property by customs authorities may be repealed before the expiry of the time limit for suspension of the release:

(1) in cases prescribed by point 9 of Article 124 of the Customs Code of the Union;

(2) in case the actions of the declarant are declared as legitimate by the decision of the court having entered into force;

(3) in other cases established by the Committee.

3. In accordance with point 11 of Article 124 of the Customs Code of the Union, the customs authority may establish the cases when the time limits for release shall not be resumed after the decision on suspending the release of goods containing objects of intellectual property by the customs authorities is repealed.

 

SECTION 4

 

CUSTOMS PROCEDURES

 

CHAPTER 16

 

GENERAL PROVISIONS ON CUSTOMS PROCEDURES

 

Article 98.

Placement of goods under the customs procedure

 

1. Goods imported into the Republic of Armenia and not considered as goods of the Union shall be placed under the customs procedure selected by the declarant in the manner and in accordance with the conditions provided for by the Customs Code of the Union, this Law and international treaties of the Republic of Armenia.

2. Goods exported from the Republic of Armenia to foreign countries that are not members of the Union shall be placed under the customs procedure selected by the declarant, in the manner and in accordance with the conditions provided for by the Customs Code of the Union, this Law and international treaties of the Republic of Armenia.

3. Goods of the Union shall be transported (imported or exported) to other member states of the Union under the customs procedure "Customs transit" in accordance with the Customs Code of the Union, this Law and international treaties of the Republic of Armenia.

4. Goods not considered as goods of the Union shall be transported (imported or exported) to other member states of the Union in accordance with the provisions prescribed by Chapters 22 and 43 of the Customs Code of the Union and this Law.

5. Double customs placement shall not be required when importing goods of the Union into the territory of the Republic of Armenia.

6. The declarant may change the customs procedure selected thereby in accordance with the Customs Code of the Union and this Law.

7. In case provided for by the Customs Code of the Union, the customs procedures shall be terminated in the form established by the Committee.

 

Article 99.

Customs procedures and guarantees ensuring the compliance with the conditions of the customs procedures

 

1. The types of customs procedures shall be prescribed by Article 127 of the Customs Code of the Union.

2. In case limitations on the use and disposal of goods are prescribed by the conditions of and requirements for the customs procedure selected by the declarant, for the purpose of complying with those conditions and requirements, the customs authorities shall be entitled to request from the declarant or the authorised persons thereof a written letter of commitment on ensuring the observance of the limitations prescribed, make identification of goods, carry out sealing and lead-sealing of packages and constructions envisaged for the storage of goods, and undertake other measures ensuring the observance of the mentioned limitations.

3. According to the customs procedures, the Government may establish conditions in case of observance of which the operation of the relevant customs procedures may be completed before the end of the time limit prescribed within the scope of the customs procedure.

 

CHAPTER 17

 

CUSTOMS PROCEDURE "RELEASE FOR DOMESTIC CONSUMPTION"

 

Article 100.

Placement of goods under the customs procedure "Release for domestic consumption"

 

1. The essence of the customs procedure "Release for domestic consumption" and the relations pertaining to placement of goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 20 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

2. In case goods placed under the customs procedure "Release for domestic consumption" in the members states of the Union are imported into the Republic of Armenia, the customs placement of the goods under the mentioned customs procedure shall not be required.

3. Where, within the framework of the customs procedure "Release for domestic consumption", customs duties at a rate lower than the rates of the import customs duties of the goods prescribed by the legislation have been paid in the members states of the Union, or where the goods being imported are made of raw materials during the import of which customs duty benefits were applied in the member states of the Union, or where the regulations applied to the goods in the Republic of Armenia have not been applied in the member state of the Union, the payment of additional amounts of import customs duties and the submission of necessary documents meeting the regulations existing in the Republic of Armenia shall be done during the declaration thereof.

 

Article 101.

Application of the customs procedure "Release for domestic consumption" in case of conditional release of goods

 

1. In case of application of import customs duties and tax benefits related to limitations on the use or disposal of goods under the customs procedure "Release for domestic consumption", double placed under the mentioned procedure shall not be required for acquiring the status of goods of the Union, in accordance with point 8 of Article 126 of the Customs Code of the Union.

2. The procedure for paying the customs duties and taxes for acquiring the status of goods of the Union shall be prescribed by this Law.

3. In accordance with point 2 of part 1 of Article 126 of the Customs Code of the Union, the declarant shall submit the documents on conditionally released goods to the customs authority having made the conditional release. The customs authority shall accept those documents based on the application of the declarant, wherein the registration number of the declaration of the goods shall be indicated. Based on the application of the declarant, the customs authority shall be obliged to provide a written or electronic confirmation with regard to accepting the documents.

4. The limitations on use or disposal of goods prescribed on the grounds of granting benefits for the payment of customs duty, taxes shall terminate after the expiry of the time limits prescribed by the legal acts adopted for the purpose of granting these benefits, or if no time limits have been prescribed, three years after the release of the goods.

 

CHAPTER 18

 

CUSTOMS PROCEDURE "EXPORT"

 

Article 102.

Placement of goods under the customs procedure "Export"

 

1. The essence of the customs procedure "Export" and the relations pertaining to placement of goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 21 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

2. In accordance with paragraph two of point 5 of Article 139 of the Customs Code of the Union, on the basis of the application of the declarant, the customs authority may define a time limit shorter than the time limit prescribed by the first paragraph of point 5 of Article 139 of the Customs Code of the Union.

3. In case a time limit shorter than the time limit prescribed by the first paragraph of point 5 of Article 139 of the Customs Code of the Union is prescribed, the customs authority may extend it on the basis of the application of the declarant for a period not exceeding the period prescribed by the first paragraph of point 5 of Article 139 of the Customs Code of the Union.

4. In case the customs authority rejects the application referred to in this part, the grounds for rejection shall also be submitted to the declarant.

 

CHAPTER 19

 

CUTOMS PROCEDURE "CUSTOMS TRANSIT"

 

Article 103.

Placement of goods under the customs procedure "Customs transit"

 

1. The essence of the customs procedure "Customs transit" and the relations pertaining to placement of goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 22 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

2. In case of transportation of goods under the customs procedure "Customs transit", the declarant shall submit to the customs authority the transit declaration prescribed by sub-point 2 of point 1 of Article 105 of the Customs Code of the Union.

3. The Government shall, in accordance with point 10 of Article 142 of the Customs Code of the Union, establish the peculiarities of transit from one customs authority to another in the territory of the Republic of Armenia.

 

Article 104.

Measures securing customs procedure "Customs transit"

 

1. The customs authorities shall not require security for the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties during the placement of goods under the customs procedure "Customs transit" in the cases prescribed by point 4 of Article 146 of the Customs Code of the Union.

2. The cases of adoption, by the customs authorities, of a decision on customs convoy of means of transport transporting goods under the customs procedure "Customs transit" shall be prescribed by Article 343 of the Customs Code of the Union.

3. The customs convoy of means of transport transporting goods under the customs procedure "Customs transit" shall be carried out by the customs authorities.

4. The customs authorities may define the transportation routes in the manner and under the conditions prescribed by Article 344 of the Customs Code of the Union. The Government may define transportation routes for goods of certain types transported within the territory of the Republic of Armenia under the customs procedure "Customs transit".

5. In accordance with point 2 of Article 146 of the Customs Code of the Union, the procedure for use of the information necessary for the calculation of the security for discharging the liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties calculated for the placement of goods under the customs procedure "Customs transit" by the customs authorities shall be established by the Government.

6. In accordance with sub-point 5 of point 4 of Article 146 of the Customs Code of the Union, the Government may define the cases when, within the scope of the customs procedure "Customs transit", no provision of security for discharging the liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties shall be required.

7. For the purpose of securing the discharge of liabilities with respect to payment of customs duty, taxes, special, anti-dumping and compensation duties, the declarant may submit multiple security.

8. In the cases when the placement of goods under the customs procedure "Customs transit" is carried out by the customs authority of one member state of the Union, and the multiple security for discharging the liability to pay customs duties and taxes shall be provided to the customs authority of another member state of the Union, the peculiarities prescribed by the international treaty of the member states of the Union shall be applied for providing multiple security for the liability to pay customs duties and taxes.

9. In cases when the placement of goods under the customs procedure "Customs transit" is carried out by the customs authority to which the multiple security for the liability to pay customs duties and taxes has been provided, the provision of multiple security for the liability to pay customs duties and taxes shall be performed as prescribed by this Law.

 

Article 105.

Place of delivery of goods

 

1. The place of delivery of goods shall be prescribed by Article 145 of the Customs Code of the Union.

2. In accordance with point 3 of Article 145 of the Customs Code of the Union, customs authorities located at the places of arrival shall determine the places of delivery of goods taking as a basis the data specified in the transport (transportation) and commercial documents.

3. Regardless of the provisions prescribed by the first paragraph of this part, the customs authorities located at the places of arrival may establish other places of delivery of goods:

(1) based on the application of the declarant or carrier or authorised persons thereof;

(2) in case of impossibility of carrying the goods to the delivery places indicated in the transport (transportation) and commercial documents;

(3) in cases determined by the customs authorities using the risk management system, within the framework of the use of customs control forms and measures ensuring the exercise of customs control;

(4) in other cases prescribed by law.

4. The presence of customs authorities at the places of delivery of goods, as well as the transportation of goods to the locations of customs authorities shall not be a mandatory condition for delivering the goods to the place of delivery.

5. In accordance with point 10 of Article 142 of the Customs Code of the Union, for the purpose of changing the place of delivery, the declarant or the carrier or authorised persons thereof shall submit an application to the customs authority, in which they shall indicate the reasons for the change of the place of delivery and the preferred place of delivery, as well as shall submit documents related to the delivery of the goods.

6. After receiving the application referred to in this part, the customs authority shall make a decision on the change of the place of delivery within one working day. In case such decision is made, the place of delivery shall be changed without completing the customs procedure "Customs transit". In the case prescribed by this part, the procedure for performing customs operations related to the change of the place of delivery of goods shall be established by the Committee.

 

Article 106.

Obligations and liability of the carrier during the carriage of goods transported under the customs procedure “Customs transit”

 

1. The obligations of the carrier during the carriage of goods placed under the customs procedure “Customs transit” shall be prescribed by Article 150 of the Customs Code of the Union.

2. In case of failure to deliver the goods placed under the customs procedure "Customs transit" and the documents to the customs authority of the destination, the carrier shall bear liability as prescribed by this Law, where the goods have been released in the Republic of Armenia under that procedure.

3. Where the carrier fails to fulfil the obligations thereof when placing the goods under the customs procedure "Customs transit" in cases other than the case prescribed by part 2 of this Article, the carrier shall bear liability as prescribed by this Law, where the violation has been detected within the territory of the Republic of Armenia.

 

Article 107.

Discharge and termination of the customs procedure "Customs transit"

 

1. The customs procedure "Customs transit" shall be discharged and terminated in accordance with the provisions prescribed by Article 151 of the Customs Code of the Union and this Law.

2. Goods imported into the territory of the Republic of Armenia from the member states of the Union (with the exception of import by air transport) shall be placed under the customs procedure "Customs transit" in accordance with the Customs Code of the Union, this Law and the international treaties of the Republic of Armenia.

3. Following the discharge of the customs procedure "Customs transit" applied to goods imported from the member states of the Union, the goods shall not be placed under temporary storage.

4. In accordance with point 3 of Article 151 of the Customs Code of the Union, for the purpose of discharging the customs procedure "Customs transit", the documents provided for by Article 151 of the Customs Code of the Union may be submitted to the customs authorities by the declarant or the carrier or the authorised person thereof.

5. In accordance with point 6 of Article 151 of the Customs Code of the Union, the procedure for registration of the documents provided for by point 3 of Article 151 of the Customs Code of the Union by the customs authorities shall be established by the Government.

6. In accordance with point 8 of Article 151 of the Customs Code of the Union, the Government may establish time limits for the discharge of the customs procedure "Customs transit" depending on the type of the vehicle.

7. In accordance with point 11 of Article 151 of the Customs Code of the Union, the Government may define the cases when the customs procedure "Customs transit" is discharged by placing the goods under temporary storage, registering the customs declaration, releasing the goods, and leaving the goods from the customs territory of the Union, as well as by putting a lien on the goods by the customs authorities in accordance with Chapter 51 of the Customs Code of the Union.

8. In the cases provided for by part 7 of this Article, the procedure for performing customs operations related to the discharge of the customs procedure "Customs transit", including depending on the type of the transport by which the goods are transported, shall be established by the Government.

9. In accordance with point 3 of Article 152 of the Customs Code of the Union, in case of the availability of an information interaction system between the customs authority and the carrier, the customs authority may send a notification to the carrier on failure on failure to perform the actions aimed at the temporary storage of goods or their declaration by persons referred to in sub-points 1-3 of point 1 of Article 83 of the Customs Code of the Union, as prescribed by the Committee.

10. During the transportation of goods by rail and air transport, the carrier shall submit the documents provided for by point 3 of Article 151 of the Customs Code of the Union within 12 hours after the arrival of the means of transport at the place of destination of the goods, and in case of arrival during non-working hours of the customs authorities — within 8 hours from the beginning of the working hours of the customs authority.

11. The customs authority of the destination shall be obliged to, within one hour following the time limits prescribed for the submission of the documents by point 3 of Article 151 of the Customs Code of the Union and this Article, register the fact of submission of the documents and arrival of the means of transport and issue a written confirmation of the arrival of the means of transport to the carrier in the form prescribed by the Committee.

 

CHAPTER 20

 

CUSTOMS PROCEDURE "CUSTOMS WAREHOUSE"

 

Article 108.

Essence of the customs procedure "Customs warehouse", conditions for the placement of goods within the framework thereof and time limits for the storage of goods in the customs warehouse

 

1. The essence of the customs procedure "Customs warehouse" and the relations pertaining to placement of the goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 23 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

 

Article 109.

Conditions for the placement of goods under the customs procedure "Customs warehouse" when failing to actually place the goods in the customs warehouse

 

1. The customs procedure "Customs warehouse" may be applied to goods which may not be stored in customs warehouses due to their large size or special conditions of loading, unloading or storage, by storing the mentioned goods in other places, based on the permit for such storage granted by the customs authority.

2. The procedure for granting the permit referred to in point 1 of this Article by the customs authority and the requirements for the places which differ from customs warehouses, where the goods referred to in part 1 of this Article may be stored, shall be defined by the Government.

 

Article 110.

Goods stored in customs warehouses

 

1. In accordance with point 1 of Article 416 of the Customs Code of the Union, it shall be allowed to store the goods of the Union placed under the customs procedure "Export" in the customs warehouse until their export from the customs territory of the Union.

2. In accordance with paragraph fourth of point 4 of Article 416 of the Customs Code of the Union, the Government may define separate categories of goods which shall be allowed to be stored in closed customs warehouses.

 

Article 111.

Discharge and suspension of the customs procedure "Customs warehouse"

 

1. The customs procedure "Customs warehouse" shall be discharged and suspended in accordance with Article 161 of the Customs Code of the Union.

2. The customs procedure "Destruction" may be applied to goods stored in the customs warehouse by the operator of the customs warehouse.

 

CHAPTER 21

 

CUSTOMS PROCEDURE "INWARD PROCESSING"

 

Article 112.

The content of the customs procedure "Inward processing", conditions for placing goods under that customs procedure and use under customs procedure, the calculation of customs duties, taxes, special, anti-dumping and compensation duties and time limits for payment thereof

 

1. The essence of the customs procedure "Inward processing" and the relations pertaining to placing the goods under that customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 24 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

2. The customs declaration for clearing the goods under the customs procedure "Inward processing" shall be submitted by the person who has received the permit for inward processing of goods, or who directly performs the operations of processing the goods and has the right to act as a declarant in accordance with Article 83 of the Customs Code of the Union.

3. The procedure for record-registration of goods released under the customs procedure "Inward processing" shall be defined by the Government.

 

Article 113.

Identification of foreign goods in the product after processing

 

1. The identification of foreign goods in the product after processing shall be carried out through the means of identification prescribed by Article 167 of the Customs Code of the Union. Moreover, the applicability of the identification method shall be determined by the customs authority issuing the permit for processing, taking into account the characteristics or nature of the goods and processing operations thereof.

2. The customs authority may independently determine the method of identification of foreign goods in the product after processing, where the method of identification proposed by the declarant is unacceptable for the customs authority.

3. The customs authority shall submit a written substantiation regarding non-acceptance of the method of identification proposed by the declarant.

4. In order to use the means of identification defined by paragraph six of Article 167 of the Customs Code of the Union, the declarant may submit documents to the customs authority based on the nature of the goods and the processing operations performed, including containing detailed information on the use of foreign products in the technological process of processing operations, as well as the technology of production of product after processing.

 

Article 114.

Time limit of customs procedure "Inward processing"

 

1. Time limit of customs procedure "Inward processing" shall be the time limit defined in the permit for inward processing of goods, which shall be determined by the person receiving the processing permit and agreeing with the customs authority in accordance with the time limits prescribed by point 3 of Article 168 of the Customs Code of the Union.

2. On the basis of a substantiated application submitted by the declarant to the customs authority, the time limit for processing of goods cleared under customs procedure "Inward processing", in accordance with point 3 of Article 165 of the Customs Code of the Union, may be extended no later than within 10 working days after the expiry of the time limit for the mentioned customs procedure.

3. In order to extend the term of the processing permit, the declarant shall submit the application indicated in part 2 of this Article to the customs authorities electronically or on paper carrier before the end of the processing period.

4. The customs authority shall, within three working days, examine the application indicated in part 2 of this Article and notify the declarant electronically or on paper carrier about extending the processing period or rejecting such extension. Moreover, in case the extension is rejected, the customs authorities shall indicate the grounds for rejection.

5. The customs authority shall reject the extension of the processing period, where there is information that the conditions of the customs procedure "Inward processing", defined by Chapter 24 of the Customs Code of the Union, have been violated or the application for the extension of the time limit has been submitted in violation of the time limit prescribed.

6. In case of extending the processing permit, the time limit for the customs procedure "Inward processing" shall also be extended no later than 5 working days after receiving the extension permit.

 

Article 115.

Minimum output of product after processing

 

1. The declarant shall determine the minimum output of product after processing independently, taking into account the actual technological process of processing operations defined by Article 166 of the Customs Code of the Union, and agree it with the customs authorities when submitting an application to obtain a processing permit or making amendments to that permit.

2. While agreeing minimum output quantities by the customs authorities, opinions of expert organisations, as well as positions of authorised bodies of the state administration system, which are based on the technological process of that production in the territory of the Republic of Armenia, may be taken into account.

3. In case of compliance with the conditions prescribed by point 2 of Article 169 of the Customs Code of the Union by the authorised body of the Government, standard quantities of the output generated as a result of processing may be defined, which shall not be subject to agreement with the customs authorities.

4. In accordance with point 1 of Article 170 of the Customs Code of the Union, the Government shall define the procedure for declaring wastes generated from processing operations useless for commercial use.

 

Article 116.

Document of inward processing

 

1. The document on the conditions for processing of goods provided for by Article 168 of the Customs Code of the Union shall be the permit for inward processing of goods.

2. In case the value of foreign goods, the products after processing of these goods, remainders and wastes are not known, relevant intervals shall be indicated in the processing permit.

3. Where, as of the day of receiving the processing permit, the documents confirming the person's right to possess, use or dispose of the goods are missing, that information shall be included by making amendments or supplements to the processing permit no later than one working day before the declaration of the goods.

4. In accordance with point 8 of Article 168 of the Customs Code of the Union, the procedure for granting a processing permit, the form, the procedure for filling it in, the procedure for making amendments or supplements to the processing permit, cancelling it, suspending and resuming the processing permit document, prescribed by part 1 of this Article, shall be defined by the Government. The electronic format and structure of the product processing permit shall be defined by the Committee.

5. In accordance with point 2 of Article 168 of the Customs Code of the Union, the Government may define the peculiarities of filling in the document on the conditions of processing of goods cleared under the customs procedure "Inward processing".

 

Article 117.

Granting a permit for processing goods

 

1. The permit for processing goods may be obtained by any interested person, including the person not directly performing processing operations, who, in accordance with Article 83 of the Customs Code of the Union, may act as a declarant.

2. In order to obtain a permit for processing goods, a person shall submit an application electronically or on paper carrier to the customs authorities.

3. The following shall be indicated in the application for obtaining a permit for processing:

(1) the name, address of place of location of the applicant (declarant);

(2) the name, address of place of location of persons directly performing the processing operations of goods;

(3) the name of foreign goods subject to processing, as well as the products, remainders and wastes derived from them, CN FEA codes, quantity, basic and additional measurement units, the value or value range thereof;

(4) the name, CN FEA codes, the quantity of goods of the Union ensuring the technological process of processing foreign goods;

(5) operations applied to foreign goods, information on the methods of and time limits for application thereof;

(6) the address of the place of implementation of the processing production processes;

(7) the minimum output of product after processing;

(8) methods of identifying foreign goods derived from processing;

(9) the time limit for processing goods;

(10) the replacement of foreign goods with goods of the Union;

(11) the possibility of further commercial use of wastes;

(12) the type, number, date of the document confirming the right to possess, use or dispose of foreign goods;

(13) the name of production losses, CN FEA codes, the quantity expressed in basic and additional measurement units, the value or the value range.

4. The customs declaration filled out under the customs procedure "Inward processing" may be used as an application for processing permit, where the purpose of such processing is repair.

5. Documents confirming the information submitted therein shall also be attached to the application for obtaining a permit for processing goods.

6. The customs authority shall examine the application and documents submitted by the person in accordance with this Article within five working days following the day of registration thereof. The customs authority shall be entitled to make a request to the person who has submitted the application or to the relevant state authorities in order to verify the information submitted with regard to the minimum output quantities of processing product, who shall be obliged to provide the information requested by the customs authorities within five working days. During the period of inquiry, the time limit prescribed by this part for examining the application submitted by the person by the customs authorities shall be suspended.

7. Where the customs declaration is used as an application for obtaining a permit for processing goods, in accordance with this Article, the time limit for examination of the application may not exceed the time limits for release of the goods declared by such customs declaration.

8. The customs authority may reject to grant a permit for processing goods, where the person has not submitted the documents and information prescribed by this Article, as well as the minimum output quantities of the processing of goods or has not agreed the time limits for processing with the customs authorities.

9. The rejection of the customs authority to grant a permit for processing goods shall be sent to the person electronically or on paper carrier, by indicating the grounds for the rejection to grant the permit. The form of rejection of the permit for processing goods shall be defined by the Committee.

10. The form of the application for obtaining a permit for inward processing, its electronic structure and format shall be defined by the Committee.

 

Article 118.

Making amendments (supplements) to the permit for processing goods

 

1. When a need arises to make amendments (supplements) to the permit for processing goods, the amendments (supplements) may be made in the permit granted by the customs authorities upon submission, by the person who has obtained the permit for processing, of an application, electronically or on paper carrier, to the customs authority having granted the permit for processing.

2. The customs authorities shall, within three working days, examine the amendments (supplements) proposed by the person in accordance with part 1 of this Article and, in case of agreement, make amendments (supplements) to the processing permit.

3. In case of a need for additional information or request, the time limit prescribed by this part shall be suspended for time period of receiving the response to that information or request.

4. Making amendments (supplements) to the processing permit shall be rejected in the existence of the grounds prescribed by part 8 of Article 117 of this Law, about which the customs authority shall notify the person electronically or on paper carrier, by indicating the grounds for rejection.

5. The form of the application submitted by a person for making amendments (supplements) to the processing permit, as well as the structure and format when submitting it electronically, shall be defined by the Committee.

 

Article 119.

Recall (cancellation) of the permit for processing goods under customs procedure "Inward processing"

 

1. Processing permit may be recalled (cancelled) by the customs authorities, where:

(1) the declarant does not comply with the conditions of the customs procedure;

(2) facts have become known to the customs authorities, which attest that unreliable information has been submitted to the customs authorities in order to obtain a permit for processing goods, which have affected the amount of the customs duty, taxes, special, anti-dumping and compensation duties;

(3) the person who has obtained a permit for processing goods has failed to import goods subject to processing under the customs procedure "Inward processing" within two years after obtaining the permit.

2. Before recalling (cancelling) the processing permit upon the ground of point 3 of part 1 of this Article, the customs authority shall send, electronically or on paper carrier, a notification of the intention to recall the processing permit to the person who has obtained the permit.

3. Where the person who has obtained a processing permit fails to carry out any action aimed at importing goods within 10 working days after the customs authority has sent the notification provided for by part 2 of this Article, the customs authority shall recall (cancel) the processing permit.

4. The decision on recalling (cancelling) the processing permit by the customs authorities shall have effect from the moment of its adoption. Moreover, the import of goods on the basis of a recalled (cancelled) permit shall not be allowed under the customs procedure "Inward processing".

5. In case of recall (cancellation) of the processing permit, the declarant shall be obliged to discharge the customs procedure "Inward processing" within 10 working days.

6. Irrespective of the provisions prescribed by part 5 of this Article, the declarant shall not be allowed to export the goods from the territory of the Republic of Armenia, where he or she has violated the requirement prescribed by sub-point 3 of part 2 of Article 164 of the Customs Code of the Union. In that case the declarant shall be obliged to declare the goods under the customs procedure "Release for domestic consumption" within 10 working days following the recall (cancellation) of the processing permit, by paying the unpaid amounts of customs duties, taxes, special, anti-dumping and compensation duties and the penalties calculated for late payment thereof. Where the clearance of foreign goods is impossible under the mentioned procedure due to the prohibitions and restrictions imposed thereon, they shall be cleared under a customs procedure providing for export from the territory of the Republic of Armenia or the customs procedure "Destruction" by paying the unpaid amounts of customs duty, taxes, special, anti-dumping and compensation duties calculated within the framework of the customs procedure "Release for domestic consumption" and penalties calculated for late payment thereof.

7. Where the decision on recalling (cancelling) the processing permit adopted by the customs authorities is declared as illegal by way of superiority or as a result of an appeal, in case that decision is declared invalid, the effect of the processing permit shall be restored from the day the decision is declared unlawful by the customs authorities prescribed by this part.

 

Article 120.

Replacement of foreign goods with equivalent goods (equivalent replacement)

 

1. Customs authorities shall permit the replacement (equivalent replacement) of foreign goods with equivalent goods of the Union in accordance with Article 172 of the Customs Code of the Union. The customs authority shall make a note on the equivalent replacement permission in the processing permit.

2. Where equivalent replacement of foreign goods is permitted, export of the product obtained by processing equivalent goods may be permitted before the import of foreign goods. Moreover, the time limit for import of foreign goods shall be decided by the declarant within the framework of the period of the processing permit.

3. In accordance with point 5 of Article 172 of the Customs Code of the Union, the procedure and conditions for equivalent replacement of foreign goods shall be defined by the Government.

 

Article 121.

Discharge, termination and suspension of the customs procedure "Inward processing"

 

1. The customs procedure "Inward processing" shall be discharged, terminated and suspended in accordance with Article 173 of the Customs Code of the Union.

 

CHAPTER 22

 

CUSTOMS PROCEDURE "OUTWARD PROCESSING"

 

Article 122.

The content of the customs procedure "Outward processing", conditions for placing goods under the customs procedure and use under customs procedure, the calculation of customs duties, taxes, special, anti-dumping and compensation duties and time limits for payment thereof

 

1. The essence of the customs procedure "Outward processing" and the relations pertaining to placement of goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 25 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

2. The customs declaration for placement of goods under the customs procedure "Outward processing" shall be submitted by the person who has obtained the permit for outward processing of goods, or who directly performs the processing of the goods and is entitled to act as a declarant in accordance with Article 83 of the Customs Code of the Union.

3. In accordance with sub-point 3 of point 1 of Article 177 of the Customs Code of the Union, no security of the payment of the export customs duty shall be provided to the customs authorities with respect to discharge of liabilities in case of placement of goods under the customs procedure "Outward processing".

4. The procedure for record-registration of goods placed under the customs procedure "Outward processing" shall be defined by the Government.

 

Article 123.

Time limit for the customs procedure "Outward processing"

 

1. The time limit for the customs procedure "Outward processing" shall be the time limit defined in the permit for outward processing of goods, which shall be determined by the person obtaining the processing permit and agreed with the customs authority in accordance with the time limit prescribed by point 3 of Article 181 of the Customs Code of the Union.

2. On the basis of a substantiated application submitted by the declarant to the customs authority, in accordance with paragraph 3 of Article 178 of the Customs Code of the Union, the period of processing goods placed under the customs procedure "Outward processing" may be extended no later than within 10 working days after the expiry of the time limit for the mentioned customs procedure.

3. In order to extend the term of the processing permit, the declarant shall submit the application indicated in part 2 of this Article to the customs authority electronically or on paper carrier before the expiry of the processing period.

4. The customs authority shall, within three working days, examine the application indicated in part 2 of this Article and notify the declarant electronically or on paper carrier of the extension of the processing period or rejection of such extension. Moreover, in case the extension is rejected, the customs authorities shall indicate the grounds for rejection.

5. The customs authority shall reject the extension of the processing period, where there is information that the conditions of the customs procedure "Outward processing" have been violated, or the application for extension has been submitted in violation of the time limit prescribed.

6. In case of extending the processing permit, the time limit for the customs procedure "Outward processing" shall also be extended no later than 5 working days after obtaining the extension permit.

 

Article 124.

Identification of goods of the Union in the product after processing

 

1. The identification of goods of the Union in the result of processing shall be carried out by the methods of identification defined by Article 180 of the Customs Code of the Union; moreover, the applicability of the method of identification shall be determined by the customs authority having granted the processing permit, taking into account the characteristics and nature of the goods, and processing operations thereof.

2. The customs authority may independently determine the method of identification of goods of the Union in the result of processing, where the method of identification proposed by the declarant is inadmissible for the customs authority.

3. The customs authority shall submit a written justification regarding the non-acceptance of the method of identification proposed by the declarant.

4. In order to apply the means of identification defined by paragraph six of Article 180 of the Customs Code of the Union, the declarant may submit documents to the customs authority based on the nature of the goods and outward processing operations outside the Union, including those containing detailed information on the use of the goods of the Union in technological process of processing operations, as well as on the technology of production of processing product.

 

Article 125.

Minimum output of product after processing

 

1. Within the scope of the customs procedure "Outward processing" the minimum output quantities of processing of goods shall be determined by the person who has obtained a processing permit, taking as a basis the actual technological processes of processing the goods and agreeing with the customs authorities.

2. While agreeing the minimum output quantities by the customs authorities, the opinions of expert organisations, as well as positions of the authorised bodies of the state administration system, which are based on the technological process of that production in the territory of the Republic of Armenia, may be taken into account.

3. In case of compliance with the conditions prescribed by point 2 of Article 182 of the Customs Code of the Union, the authorised body of the Government may define standard quantities of the product obtained after processing, which shall not be subject to agreement with the customs authorities.

 

Article 126.

Document on conditions for outward processing of goods

 

1. The document on the conditions for the outward processing of goods provided for by Article 181 of the Customs Code of the Union shall be the permit for outward processing of goods.

2. In case the value of foreign goods, the products after processing, remainders and wastes is not known, relevant value ranges shall be indicated in the processing permit.

3. Where, as of the day of obtaining the processing permit, the person's rights to possess, use or dispose of the goods are missing, such information shall be included in the processing permit by making amendments or supplements thereto no later than one working day before the declaration of the goods.

4. In accordance with point 8 of Article 181 of the Customs Code of the Union, the procedure for granting an outward processing permit, the form, the procedure for filling it in, the procedure for making amendments or supplements to the processing permit, cancelling it, as well as suspending and resuming the processing document defined by part 1 of this Article, shall be defined by the Government.

5. The electronic format and structure of the permit for outward processing of goods shall be defined by the Committee.

 

Article 127.

Granting a permit for outward processing of goods

 

1. The permit for outward processing of goods may be obtained by any interested person who, in accordance with Article 83 of the Customs Code of the Union, may act as a declarant during placement of goods under the customs procedure "Outward processing".

2. In order to obtain a permission for outward processing of goods, a person shall submit an application electronically or on a paper carrier to the customs authority where it is intended to complete the clearing of goods under the given customs procedure.

3. The application submitted for the purpose of obtaining a permit for outward processing of goods shall indicate:

(1) the name, address of the place of location of the applicant (declarant);

(2) the name, address of the place of location of persons directly performing goods processing operations;

(3) the name of goods of the Union subject to processing, as well as of the products, remainders and wastes derived from them, the CN FEA code, quantity in basic and additional measurement units, the value or value range thereof;

(4) operations applied to goods of the Union, methods and time limits for application thereof;

(5) the address of the place of performance of processing production processes;

(6) the minimum output of the product after processing;

(7) the methods of identifying goods of the Union derived from processing;

(8) the time limit for processing goods;

(9) the opportunity to replace goods obtained as a result of processing with foreign goods;

(10) the type, number, date of documents confirming the right to possess, use or dispose of the goods.

4. Documents confirming the information submitted in the application for obtaining a permit for processing goods shall be attached thereto.

5. The customs authority shall examine the application and documents submitted by the person in accordance with this Article no earlier than within five working days following the day of registration thereof.

6. The customs authority shall be entitled to make a request to the person having submitted the application or to the relevant state authorised bodies in order to verify the information submitted with regard to the minimum output quantities of the product after processing, who shall be obliged to provide the information requested by the customs authorities within five working days.

7. During the period of the inquiry made in accordance with part 6 of this Article, the time limit for examination of the application submitted by the person by the customs authorities, defined by this part, shall be suspended.

8. A customs declaration filled out under the customs procedure "Outward processing" may be used as an application for processing permit, where the purpose of such processing is repair.

9. Where the customs declaration is used as an application for obtaining a permit for processing goods in accordance with part 8 of this Article, the time limit for examination of the application may not exceed the time limits for release of the goods declared by such customs declaration.

10. The customs authority may refuse to grant a permit for outward processing of goods, where the person fails to submit the documents and information defined by this Article (except for the information that, in accordance with this Chapter, may be filled in before the customs declaration), as well as the minimum output quantities of the product after processing or in case of not agreeing the time limits for processing with the customs authorities.

11. The rejection to grant a permit for processing goods by the customs authority shall be sent to the person electronically or on paper carrier, by indicating the grounds for the rejection to grant the permit. The form of rejection of the permit for processing goods shall be defined by the Committee.

12. The form of the application for obtaining a permit for inward processing of goods, its electronic structure and format shall be defined by the Committee.

 

Article 128.

Making amendments (supplements) to the permit for outward processing of goods

 

1. When a need arises to make amendments (supplements) to the permit for processing of goods, the amendments (supplements) may be made in the permit granted by the customs authorities by the person who has obtained the permit for processing by submitting an application, electronically or on paper carrier, to the customs authority having granted the permit for processing.

2. The customs authority shall, within three working days, examine the amendments (supplements) proposed by the person and in case of agreement shall make amendments (supplements) to the permit for outward processing of goods.

3. In case of requesting additional information or of a need to make a request, the time limit prescribed by this part shall be suspended for the time limit of receiving that information or the response to the request.

4. Making amendments (supplements) to the permit for outward processing of goods shall be rejected in the existence of the grounds defined by part 10 of Article 127 of this Law, about which the customs authority shall notify the person electronically or on paper carrier, by indicating the grounds for rejection.

5. The form of the application for making amendments (supplements) to the permit for outward processing of goods, as well as the structure and format when submitting it electronically shall be defined by the Committee.

 

Article 129.

Recall (cancellation) of the permit for processing of goods under the customs procedure "Outward processing"

 

1. The customs authorities may recall (cancel) the permit for outward processing of goods, where:

(1) the declarant has not complied with the conditions of the customs procedure "Outward processing";

(2) facts have become known to the customs authorities, which attest that unreliable information has been submitted to the customs authorities in order to obtain a permit for processing goods, which have affected the amount of the customs duty, taxes and other fees subject to payment to the customs authority;

(3) the person who has obtained a permit for processing goods has failed to export goods subject to processing under the customs procedure "Outward processing" within two years after obtaining the permit.

2. Prior to the recall (cancellation) of the permit for processing goods on the basis of point 3 of part 1 of this Article, the customs authority shall send a notification, electronically or on paper carrier, of the intention to recall the processing permit to the person having obtained the permit.

3. In case the person having obtained the processing permit fails to perform any action aimed at the export of goods within 10 working days after the customs authority has sent the notification provided for by part 2 of this Article, the customs authority shall recall (cancel) the processing permit.

4. The decision on the recall (cancellation) of the processing permit by the customs authorities shall have effect from the moment of its adoption; moreover, the export of goods under the customs procedure "Outward processing" based on the recalled (cancelled) permit shall not be permitted.

5. The declarant shall be obliged to place the goods previously placed under the customs procedure "Outward processing" under the customs procedure "Export" within 10 working days after receiving the notification of the decision to recall (cancel) the processing permit by the customs authorities,.

6. Where the decision to recall (cancel) the permit for outward processing of goods adopted by the customs authorities is declared as illegal by way of superiority or as a result of an appeal, in case that decision is declared invalid, the customs authorities shall restore the effect of the processing permit from the day of declaring the decision prescribed by this part as invalid.

 

Article 130.

Replacement of product after processing with foreign goods

 

1. The customs authority may permit the replacement of the product after processing of goods with equivalent foreign goods.

2. Where the purpose of processing of goods is warranty (gratuitous) repair, which is carried out within the warranty period, the customs authorities shall permit the replacement of the product after processing goods with foreign goods, where:

(1) the foreign person performing direct processing of goods confirms the need for such replacement;

(2) the replacement of the product after processing goods with foreign equivalent goods is provided for by a contract or the manufacturer's warranty.

3. The import of equivalent foreign goods into the Republic of Armenia shall be carried out within a time period not exceeding the time limit of the permit for outward processing of goods.

4. In case of permitting the replacement of the product after processing of goods with equivalent foreign goods by the customs authority, in order to discharge the customs procedure "Outward processing", in accordance with point 2 of Article 183 of the Customs Code of the Union, the goods of the Union shall be exported from the territory of the Republic of Armenia until the expiry of the time limit indicated in the processing permit, which shall be calculated from the day of importing the equivalent goods.

5. The interested person shall inform about the replacement of the product after processing the goods with equivalent foreign goods in the application submitted to the customs authorities for a processing permit, and the customs authority shall make a note thereon in the permit for outward processing of goods.

6. Where the need to replace the goods arises after receiving the permit for outward processing of goods, the person who has obtained the permit for processing goods shall submit a substantiated application to the customs authorities electronically or on paper carrier for permitting the replacement of the product after processing the goods.

7. Documents confirming the information prescribed by part 2 of this Article shall be attached to the application provided for by part 6 of this Article. The customs authority shall examine the submitted documents within three working days and render a decision on permitting or rejecting the replacement of products after processing with equivalent foreign goods, and shall notify thereof the person submitting the application.

8. The decision on rejecting the replacement of products after outward processing of goods with equivalent foreign goods must contain reasoned grounds for the rejection.

9. Where the customs declaration filled out under the customs procedure "Outward processing" is used as a permit for outward processing of goods, the permit for replacement of products after outward processing of goods with equivalent foreign goods shall be granted separately in the form prescribed by the Committee.

10. The procedure and conditions for equivalent replacement of foreign good shall be defined by the Government.

11. The customs procedure "Outward processing" shall be discharge and terminated in accordance with Article 184 of the Customs Code of the Union.

 

CHAPTER 23

 

CUSTOMS PROCEDURE "PROCESSING FOR DOMESTIC CONSUMPTION"

 

Article 131.

The content of the customs procedure " Processing for domestic consumption", the conditions for placing goods under that customs procedure and use under customs procedure, calculation of customs duties, taxes and other fees subject to payment to the customs authority and time limits for payment thereof

 

1. The essence of the customs procedure "Processing for domestic consumption" and the relations pertaining to placement of goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 26 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

2. The customs procedure "Processing for domestic consumption" shall be applied to the import of goods in accordance with the list prescribed by the Government.

3. The customs declaration for placement of goods under the customs procedure "Processing for domestic consumption" shall be submitted by the person who has obtained a permit for processing goods for domestic consumption and has the right to act as a declarant in accordance with Article 83 of the Customs Code of the Union.

4. The procedure for record-registration of goods placed under the customs procedure "Processing for domestic consumption" shall be defined by the Government.

 

Article 132.

Identification of foreign goods in the product after processing

 

1. The identification of foreign goods in the product after processing shall be carried out by the means of identification defined by Article 192 of the Customs Code of the Union; moreover, the applicability of the method of identification shall be determined by the customs authority granting the processing permit, taking into account the characteristics of the goods, nature and processing operations thereof.

2. The customs authority may independently determine the method of identification of foreign goods in the product after processing, where the method of identification proposed by the declarant is inadmissible to the customs authority.

3. The customs authority shall submit a written justification regarding non-acceptance of the method of identification proposed by the declarant.

4. In order to use the means of identification defined by paragraph six of Article 192 of the Customs Code of the Union, the declarant may submit documents to the customs authority based on the nature of the goods and the processing operations performed, including those containing detailed information about the use of foreign goods in the technological process of processing operations, as well as the technology of production of products after processing.

 

Article 133.

Time limit for the customs procedure "Processing for domestic consumption"

 

1. The time limit for the customs procedure for "Processing for domestic consumption" shall be the time limit prescribed in the permit for processing of goods for domestic consumption, which shall be determined by the person obtaining the processing permit and agreed with the customs authority in accordance with the time limit prescribed by point 3 of Article 193 of the Customs Code of the Union.

2. On the basis of a substantiated application submitted by the declarant to the customs authority, the time limit for processing of goods placed under the customs procedure "Processing for domestic consumption", in accordance with point 3 of Article 190 of the Customs Code of the Union, may be extended no later than within 10 working days after the expiry of the time limit for the customs procedure.

3. In order to extend the processing permit, the declarant shall submit the application indicated in part 2 of this Article to the customs authority electronically or on paper carrier before the expiry of the time limit for processing.

4. The customs authority shall, within three working days, examine the application indicated in part 2 of this Article and notify the declarant electronically or on paper carrier of the extension of the time limit for processing or rejection of extension. Moreover, in case of rejection, the customs authorities shall indicate the grounds for rejection.

5. The customs authority shall reject the extension of the time limit for processing for domestic consumption, where there is information that the conditions of the customs procedure "Processing for domestic consumption" have been violated, or the application for the extension of the time limit has been submitted in violation of the time limit prescribed.

6. In case of extending the permit for processing for domestic consumption, the time limit of the customs procedure "Processing for domestic consumption" shall also be extended no later than 5 working days after obtaining the extension permit.

 

Article 134.

Minimum output of the product after processing for domestic consumption

 

1. The declarant shall determine the minimum output of the product after processing for domestic consumption independently, taking into account the actual technological process of processing operations defined by Article 191 of the Customs Code of the Union, and agree with the customs authorities when submitting an application for a processing permit or making amendments to that permit.

2. While agreeing the minimum output quantities, the customs authorities may take into account the opinions of expert organisations, as well as positions of the authorised bodies of the state administration system, which shall be based on the technological process of that production in the territory of the Republic of Armenia.

3. In case of compliance with the conditions prescribed by point 2 of Article 194 of the Customs Code of the Union, the authorised body of the Government may define standard quantities of the output derived from the product after processing, which shall not be subject to agreement with the customs authorities.

 

Article 135.

Document on conditions for processing for domestic consumption

 

1. The document on the conditions for processing goods for domestic consumption, prescribed by Article 193 of the Customs Code of the Union, shall be the permit for processing for domestic consumption.

2. In case the value of foreign goods, the product after processing, remainders and wastes are not known, relevant value ranges shall be indicated in the permit for processing for domestic consumption.

3. Where, as of the day of obtaining the processing permit, the person's rights to possess, use or dispose of the goods are missing, such information shall be included in the processing permit by making amendments or supplements thereto no later than one working day before the declaration of the goods.

4. The procedure for granting a permit for processing goods for placing under the customs procedure “Processing for domestic consumption”, its form, the procedure for filling it in, the procedure for making amendments or supplements to a processing permit, as well as the procedure for suspending and resuming the processing document shall be defined by the Government.

5. The format and structure of the electronic permit for processing goods for domestic consumption shall be defined by the Committee.

6. The Government may define the peculiarities of filling in the document on the conditions of processing of goods placed under the customs procedure "Processing for domestic consumption".

 

Article 136.

Granting a permit for processing goods for domestic consumption

 

1. The permit for processing goods for domestic consumption may be obtained by any interested person who, in accordance with Article 83 of the Customs Code of the Union, may act as a declarant.

2. For the purpose of obtaining a permit for processing goods for domestic consumption, a person shall submit an application to the customs authorities electronically or on paper carrier.

3. For the purpose of obtaining a permit for processing goods for domestic consumption, the following shall be indicated in the application submitted in accordance with part 2 of this Article:

(1) name, address of the place of location of the applicant (declarant);

(2) the name, address of the location of persons directly performing goods processing operations;

(3) the name of goods subject to processing, as well as the products, remainders and wastes derived from them, the CN FEA code, quantity, basic and additional measurement units, the value or value range thereof;

(4) the name, CN FEA code, quantity of the goods of the Union ensuring the technological process of processing foreign goods;

(5) the address of the place of performing processing production processes;

(6) the minimum output of the product after processing;

(7) methods of identifying foreign goods derived from processing;

(8) the time limit for processing goods;

(9) the opportunity of further commercial use of wastes;

(10) the type, number, date of documents confirming the rights to possess, use or dispose of foreign goods;

4. Documents confirming the information submitted in the application for obtaining a permit for processing goods for domestic consumption shall also be attached thereto.

5. The customs authority shall examine the application and documents submitted by the person as defined by the Committee within five working days following the date of their registration. The customs authority shall be entitled to make a request to the person having submitted the application or to the relevant state authorised bodies in order to verify the information submitted regarding the minimum output quantities of product after processing for domestic consumption, who shall be obliged to provide the information requested by the customs authorities within five working days.

6. During the period of the request made in accordance with part 5 of this Article, the time limit for examination of the application and documents submitted by the person by the customs authorities, defined by this Article, shall be suspended.

7. The customs authority may reject to grant a permit for processing goods for domestic consumption, where the person has failed to submit the documents and information prescribed by this Article, as well as to agree the minimum output quantities of the product after processing or time limits for processing with the customs authorities.

8. The rejection by the customs authority to grant a permit for processing goods for domestic consumption shall be sent to the person electronically or on paper carrier, by indicating in case of rejection the grounds for the rejection to grant such permit. The form of rejection of the permit for processing goods shall be defined by the Committee.

9. The form of the application for obtaining a permit for inwards processing of goods, its electronic structure and format shall be defined by the Committee.

10. The form of the application for obtaining a permit for inward processing of goods, its electronic structure and format shall be defined by the Committee.

 

Article 137.

Making amendments (supplements) to the permit for processing goods for domestic consumption

 

1. When a need arises to make amendments (supplements) to the permit for processing goods for domestic consumption, the amendments (supplements) may be made in the granted permit by the person having obtained the processing permit by submitting an application, electronically or on paper carrier, to the customs authority having granted the permit for processing.

2. The customs authority shall, within three working days, examine the amendments (supplements) proposed by the person and, in case of agreement, make amendments (supplements) to the processing permit.

3. In case of a need for additional information or request, the time limit prescribed by this part shall be suspended for the time limit for receiving the that information or the response to the request.

4. Making amendments (supplements) to the permit for processing goods for domestic consumption shall be rejected in the existence of the grounds defined by part 7 of Article 136 of this Law, about which the customs authority shall notify the person electronically or on paper carrier, by indicating the grounds for rejection.

5. The form of the application submitted in accordance with this Article for making amendments (supplements) to the permit for processing goods for domestic consumption, as well as the structure and format thereof when submitting it electronically shall be defined by the Committee.

 

Article 138.

Recall (cancellation) of the permit for processing goods under the customs procedure "Processing for domestic consumption"

 

1. Customs authorities may recall (cancel) the permit for processing goods for domestic consumption, where:

(1) the declarant does not comply with the conditions of the customs procedure;

(2) facts have become known to the customs authorities, which attest that unreliable information has been submitted to the customs authorities in order to obtain a permit for processing goods for domestic consumption, which have affected the amount of customs duty, taxes and other fees subject to payment to the customs authorities;

(3) the person having obtained a permit for processing goods for domestic consumption has failed to import goods subject to processing under the customs procedure "Processing for domestic consumption" within one year after obtaining the permit.

2. Prior to the recall (cancellation) of the permit for processing goods for domestic consumption upon the ground of point 3 of part 1 of this Article, the customs authority shall send a notification, electronically or on paper carrier, of the intention to recall the processing permit to the person having obtained the permit.

3. The customs authority shall recall (cancel) the processing permit, where the person having obtained the permit for processing goods fails to carry out any action aimed at importing goods within 10 working days after sending the notification provided for by part 2 of this Article.

4. The decision on the recall (cancellation) of the permit for processing goods for domestic consumption by the customs authorities shall have effect from the moment of its adoption; moreover, the import of goods based on the recalled (cancelled) permit under the customs procedure "Processing for domestic consumption" shall not be permitted.

5. In case of recall (cancellation) of the permit for processing goods for domestic consumption, the declarant shall be obliged to re-declare foreign goods not undergone processing, placed under the customs procedure "Processing for domestic consumption" under the customs procedure “Release for domestic consumption” within 10 working days.

6. The product derived after processing of foreign goods placed under the customs procedure "Processing for domestic consumption" shall be allowed to be placed under the customs procedure "Release for domestic consumption".

7. Where the decision on recalling (cancelling) the permit for processing goods for domestic consumption adopted by the customs authorities is declared as illegal by way of superiority or as a result of an appeal, in case that decision is declared invalid, the customs authorities shall restore the processing permit from the day of declaring the decision prescribed by this part as invalid.

8. The customs procedure "Processing for domestic consumption" shall be discharged, terminated and suspended in accordance with Article 197 of the Customs Code of the Union.

 

CHAPTER 24

 

CUSTOMS PROCEDURE "FREE CUSTOMS ZONE"

 

Article 139.

Content of the customs procedure "Free customs zone"

 

1. The essence of the customs procedure "Free customs zone" and the relations pertaining to placing goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 27 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

2. Foreign goods and goods of the Union located in free economic zones shall be placed under the customs procedure "Free customs zone" when imported into the territory of the free economic zone.

3. The Government, in accordance with point 13 of Article 201 of the Customs Code of the Union, may define the list or categories of goods which shall not be subject to placing under the customs procedure "Free customs zone" when imported into the territory of the free economic zone established in the territory of the Republic of Armenia.

 

Article 140.

Peculiarities of application of the customs procedure "Free customs zone"

 

1. In accordance with the provisions of Article 455 of the Customs Code of the Union, retail sale of goods placed under the customs procedure "Free customs zone" shall be allowed in free economic zones without completing the indicated procedure.

2. In the case prescribed by part 1 of this Article, the person carrying out retail sales of goods placed under the customs procedure "Free customs zone" shall submit a quarterly report to the customs authorities on the sale of goods placed under the customs procedure "Free customs zone".

3. The form of the report and the procedure for its submission indicated in part 2 of this Article shall be defined by the Committee.

4. In the territory of the free economic zone prescribed by the Government, the borderline whereof partially or fully matches with the parts of the customs border of the Union:

(1) pursuant to sub-point 1 of point 5 of Article 455 of the Customs Code of the Union, legal persons determined by the Government that are not operators of a free economic zone may act as declarants of goods to be placed under the customs procedure "Free customs zone" for their placement and use;

(2) pursuant to sub-point 3 of point 5 of Article 455 of the Customs Code of the Union, the Government may establish the peculiarities of performing customs operations regarding the arrival of goods in the customs territory of the Union and the departure of goods from the customs territory of the Union when exporting goods from the territories of those free economic zones.

5. Point 3 of Article 205, sub-points 1 and 2 of point 1 of Article 207 of the Customs Code of the Union shall not apply to the free economic zone defined by the Government, the borderline whereof partially or completely matches with the parts of the customs border of the Union.

6. For the purpose of applying the privileges prescribed by point 23 of Article 455 of the Customs Code of the Union, the persons prescribed by the indicated point shall submit a passenger customs declaration for the purpose of declaring the goods and means of transportation transported by them, concurrently also submitting documents certifying the compliance with the conditions established by the same point.

7. In accordance with sub-point 5 of point 3 of Article 204 of the Customs Code of the Union, the Government may define the cases when goods entering the territory of logistics or port free economic zones, placed under the customs procedures "Export" or "Customs transit", as well as other goods shall not be placed under the customs procedure "Free customs zone".

8. The committee may define the procedure for performing customs operations in the case prescribed by sub-point 3 of point 4 of Article 205 of the Customs Code of the Union.

9. In accordance with point 6 of Article 205 of the Customs Code of the Union, the procedure for grating a permit for export of goods placed under the customs procedure "Free customs zone" or goods made (derived) from the goods placed under the procedure "Free customs zone”, without discharging the customs procedure "Free customs zone" by the customs authorities, shall be defined by the Government.

10. In accordance with point 8 of Article 205 of the Customs Code of the Union, on the basis of a substantiated application of the declarant, the customs authority shall permit the transfer of goods placed under the customs procedure "Free customs zone" (with the rights to possession, use or disposal):

(1) the contractor, including a non-operator of a free economic zone, for carrying out construction, installation and other works in the territory of a free economic zone;

(2) the carrier for the carriage of goods.

11. In accordance with part 10 of this Article, in case of the transfer of goods, the contractor and the carrier shall bear joint liability for customs duties, taxes and other fees subject to payment to the customs authorities in case obligation of such fees arises under the Customs Code of the Union and this Law, where the transferred goods have not been handed over to the declarant as of the day of origination of the obligation.

12. The Government may, in accordance with point 10 of Article 205 of the Customs Code of the Union, define cases when goods placed zone under the customs procedure "Free customs zone" by the operator of free economic or goods made (obtained) from these goods may be transferred to another operator of the same free economic zone by the rights to possession, use or disposal without discharging the customs procedure "Free customs zone".

13. In the case indicated in part 12 of this Article, the Government shall also define the procedure and conditions for the transfer of goods.

14. In the cases defined by the Government, provided for by part 12 of this Article, the person having acquired the ownership of the goods shall, upon the transfer of the ownership of the goods, bear the obligation of the declarant defined by the Customs Code of the Union and this Law, including the obligation to discharge the customs procedure "Free customs zone".

15. The Government may, in accordance with point 11 of Article 205 of the Customs Code of the Union, define cases when the goods placed under the customs procedure "Free customs zone" may be transferred to other persons by the right of ownership without discharging the mentioned customs procedure.

16. In the case indicated in part 15 of this Article, the procedure and conditions for transfer of goods shall be defined by the Government.

17. In the cases defined by the Government, provided for by part 15 of this Article, the person having acquired the right of the ownership of goods shall, upon the transfer of the right of the ownership of goods, bear the obligations of the declarant defined by the Customs Code of the Union and this Law, including the obligation to discharge the customs procedure "Free customs zone".

18. The Government may, in accordance with point 13 of Article 205 of the Customs Code of the Union, define the actions (operations) that shall not be permitted to be applied to goods placed under the customs procedure "Free customs zone".

 

Article 141.

Identification of foreign goods placed under the customs procedure "Free customs zone"

 

1. The identification of foreign goods placed under the customs procedure "Free customs zone" in goods produced in the free economic zone shall be carried out in the manners prescribed by Article 206 of the Customs Code of the Union.

2. The Government shall, in accordance with point 2 of Article 206 of the Customs Code of the Union, define the procedure for identification of foreign goods placed under the customs procedure "Free customs zone" indicated in part 1 of this Article.

 

Article 142.

Territory of free economic zone

 

1. The requirements for the territory of free economic zone and customs operations performed there shall be defined by Article 203 of the Customs Code of the Union.

2. The requirements for free economic zone shall be defined by the Government.

3. In accordance with point 4 of Article 203 of the Customs Code of the Union, the Government may define the forms of notifications submitted to customs authorities on the import of goods to free economic zones and permits granted by customs authorities, as well as the procedure for granting the indicated notifications and permits.

4. The Government shall, in accordance with point 6 of Article 203 of the Customs Code of the Union, define the procedure for identification of goods imported into the territory of free economic zones by the customs authorities.

5. In accordance with point 7 of Article 203 of the Customs Code of the Union, the declarant shall maintain record-registration of goods placed under the customs procedure "Free customs zone" and goods made (derived) from goods placed under the customs procedure "Free customs zone".

6. The procedure for maintaining record-registration of goods placed under the customs procedure "Free customs zone" and goods made (derived) form goods placed under the customs procedure "Free customs zone", as well as the procedure for submitting a report on such goods to the customs authority shall be defined by the Government.

 

Article 143.

Discharge and termination of the customs procedure "Free customs zone"

 

1. The customs procedure "Free customs zone" shall be discharged and terminated in accordance with Article 207 of the Customs Code of the Union.

2. In the cases defined by the Customs Code of the Union, the Government shall define the procedure for discharging the customs procedure "Free customs zone" without placing under other customs procedures.

3. The customs procedure "Free customs zone" shall be discharged for goods placed under the customs procedure "Free customs zone" defined by sub-points 1, 2 and 4 of point 10 of Article 207 of the Customs Code of the Union on the basis of the substantiated application of the declarant.

4. The customs authorities shall remove the goods indicated in part 3 of this Article from records on the basis of the document (opinion) issued by the authorised body for them, by making a relevant note on the customs declaration in the electronic customs declaration system used by the customs authorities, and in case the customs declaration has been done in paper form — by making a relevant note on the hard copies of the customs declaration and sealing it.

5. In the cases defined by points 12 and 13 of Article 207 of the Customs Code of the Union, the customs procedure "Free customs zone" applied to the goods placed under the customs procedure “Free economic zone” for the operation of that economic zone, provided for by the points indicated in this part, shall be discharged in case of submission of a substantiated application by the organiser of the free economic zone and of a document confirming the termination of the operation of the free economic zone or the termination of the operation of the operator of the free economic zone.

6. The goods indicated in part 5 of this Article shall be removed from record-registration by the customs authorities by making a relevant note on the customs declaration in the electronic customs declaration system used by the customs authorities, and in case the customs declaration has been done in paper form — by making a relevant note on the paper copies of the customs declaration and sealing it.

 

Article 144.

Peculiarities of discharge of the customs procedure "Free customs zone" in case of liquidation of the organiser or operator of free economic zone

 

1. In accordance with point 14 of Article 207 of the Customs Code of the Union, in case of liquidation of the organiser or operator of a free economic zone as prescribed by law, the customs procedure "Free customs zone" shall be discharged for goods located in the free economic zone in accordance with the provisions prescribed by points 3-6 of Article 207 of the Customs Code of the Union, by submitting a customs declaration under the customs procedures defined by the Customs Code of the Union (except for the customs procedure "Customs transit").

2. The customs procedure "Free customs zone" provided for by part 1 of this Article shall be discharged before the expiry of the time limit for liquidation of the legal person prescribed by the legislation of the Republic of Armenia.

3. In case of failure to discharge the customs procedure "Free customs zone" as prescribed by this Article, the customs procedure shall be discharged and the goods shall be taken as prescribed by Chapter 51 of the Customs Code of the Union. Further disposal of the goods shall be carried out in accordance with the provisions prescribed by the Customs Code of the Union and this Law.

 

CHAPTER 25

 

CUSTOMS PROCEDURE "FREE WAREHOUSE"

 

Article 145.

Content of the customs procedure "Free warehouse"

 

1. The essence of the customs procedure "Free warehouse" and the relations pertaining to placing the goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 28 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

2. The Government may, in accordance with point 3 of Article 211 of the Customs Code of the Union, define the categories of goods of the Union, which shall be mandatorily placed under the customs procedure "Free warehouse" for locating in the free warehouse.

3. The Government may, in accordance with point 12 of Article 211 of the Customs Code of the Union, define the categories and lists of foreign goods to which the customs procedure "Free warehouse" shall not be applied in the territory of the Republic of Armenia.

 

Article 146.

Conditions for placing goods under the customs procedure "Free warehouse"

 

1. The conditions for placing goods under the customs procedure "Free warehouse" shall be defined by Article 212 of the Customs Code of the Union.

2. During the discharge of the customs procedure "Free warehouse", the person who is a declarant of the customs procedure "Free warehouse" may act as a declarant, and in case of carrying out transactions providing for the transfer of the right of ownership over goods placed under the customs procedure "Free warehouse", as well as the product derived after their processing, in accordance with Article 213 of the Customs Code of the Union, the person who is a party to that transaction, to whom the ownership rights have been transferred.

3. The Government may, in accordance with point 5 of Article 212 of the Customs Code of the Union, define the cases when goods placed under the customs procedure "Free warehouse" may be located in several free warehouses, and the possessor thereof acting as declarant is a single legal person.

4. In the case prescribed by this part, the Committee shall define the peculiarities of transportation of goods between free warehouses, as well as customs operations and customs control over such goods.

 

Article 147.

Actions performed on goods placed under the customs procedure "Free warehouse"

 

1. Actions performed on goods placed under the customs procedure "Free warehouse" shall be defined by Article 213 of the Customs Code of the Union.

2. The Government may, in accordance with point 3 of Article 213 of the Customs Code of the Union, expand or reduce the operations defined by point 1 of Article 213 of the Customs Code of the Union, depending on the objectives of the establishment of the free warehouse.

3. In accordance with point 4 of Article 213 of the Customs Code of the Union, upon the permit of the customs authority, the operations provided for by sub-points 1, 3 and 5 of point 1 of Article 213 of the Customs Code of the Union may be carried out by the persons whereto the right of the ownership of goods placed under the customs procedure "Free warehouse" or the products after processing thereof have been transferred.

4. For the purpose of enforcement of sub-point 3 of point 5 of Article 213 of the Customs Code of the Union, the permit provided for by the same part shall be granted by the customs authority, by indicating in the permit the sub-division of the customs authority that shall carry out the operation for discharging the customs procedure for goods placed under the customs procedure "Free warehouse" or goods derived (manufactured) from these goods.

5. Goods placed under the customs procedure "Free warehouse" or goods derived (manufactured) from them may be taken out of the territory of the free warehouse to another territory in the Republic of Armenia without discharging the customs procedure for the purpose of performing operations aimed at the discharge of the customs procedure indicated by the customs authority.

6. For the purpose of obtaining the permit prescribed by Article 213 of the Customs Code of the Union for the removal of the goods provided for by part 5 of this Article from the free warehouse, the declarant shall submit a substantiated application to the customs authority electronically or on paper carrier, by submitting the substantiation for transporting the goods without discharging the customs procedure, as well as specifying the preferred sub-division of the customs authority where the operations aimed at discharging the customs procedure must be performed, the preferred time limits for transportation of the goods and execution of operations by the customs authority.

7. The customs declaration formulated under the customs procedure “Free warehouse” and documents confirming the information submitted in that customs declaration shall also be submitted attached to the application.

8. The customs authority shall, within one working day after receiving the application, grant a permit for transportation of goods electronically or on paper carrier, or refuse to grant such permit, by indicating the reasoning for the refusal.

 

Article 148.

Identification of foreign goods placed under the customs procedure "Free warehouse" in goods derived (manufactured) from the mentioned goods

 

1. For the purpose of identification of foreign goods in goods derived (manufactured) from goods placed under the customs procedure "Free warehouse", the methods of identification provided for by Article 214 of the Customs Code of the Union shall be applied.

2. In accordance with point 2 Article 214 of the Customs Code of the Union, the procedure for identification of the goods mentioned in part 1 of this Article by the customs authority shall be defined by the Government.

 

Article 149.

Discharge and termination of the customs procedure "Free warehouse"

 

1. The customs procedure "Free warehouse" shall be discharged and terminated in accordance with the provisions prescribed by Article 215 of the Customs Code of the Union and this Chapter. Conditioned by the circumstances prescribed by point 7 of Article 215 of the Customs Code of the Union, in case of a change of the condition or absence of goods placed under the customs procedure "Free warehouse", the customs procedure "Free warehouse" shall be discharged on the basis of a substantiated application of the declarant, based on the document issued by the authorised body for those goods.

2. The goods mentioned in part 1 of this Article shall be removed from record-registration by the customs authorities, by making a relevant note on the customs declaration in the electronic customs declaration system used by the customs authorities, and in case the customs declaration has been submitted in paper form — by making a relevant note on the paper copies of the customs declaration and sealing it.

3. In case of termination of the operation of a free warehouse, the customs procedure "Free warehouse", operation of customs procedure "Free warehouse" applied to the goods provided for by point 9 of Article 215 of the Customs Code of the Union, placed under the customs procedure “Free warehouse” for the operation of that warehouse, shall be discharged in case the possessor of the free warehouse submits a substantiated application and a document confirming the termination of the operation of the free warehouse to the customs authorities.

4. The goods indicated in part 3 of this Article shall be removed from record-registration by making a relevant note on the customs declaration in the electronic customs declaration system used by the customs authorities, and in case the customs declaration has been submitted in paper form — by making a relevant note on the paper copies of the customs declaration and sealing it.

 

Article 150.

Peculiarities of discharging the customs procedure "Free warehouse" in case of liquidation of the free warehouse

 

1. In case of liquidation of operation of the free warehouse as prescribed by law, the customs procedure "Free warehouse" shall be discharged for the goods in the free warehouse in accordance with the provisions prescribed by points 4 and 5 of Article 215 of the Customs Code of the Union, by submitting a customs declaration in accordance with the customs procedures defined by the Customs Code of the Union (except for the customs procedure "Customs transit").

2. The customs procedure "Free warehouse" provided for by part 1 of this Article shall be discharged before the expiry of the time limit for liquidation of the legal person as prescribed by the legislation of the Republic of Armenia.

3. The customs procedure "Free warehouse" shall be discharged as prescribed by this Article within 10 working days after the day of the start of the procedure prescribed by the legislation of the Republic of Armenia for liquidation of the free warehouse.

4. In case the customs procedure "Free warehouse" is not discharged as prescribed by this Article, the customs procedure shall be terminated and the goods shall be taken as prescribed by Chapter 51 of the Customs Code of the Union. Further disposal of goods shall be carried out in accordance with the provisions prescribed by the Customs Code of the Union and this Law.

 

CHAPTER 26

 

CUSTOMS PROCEDURE "TEMPORARY IMPORT"

 

Article 151.

Placement of goods under the customs procedure "Temporary import"

 

1. The essence of the customs procedure "Temporary import" and the relations pertaining to placing goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 29 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

 

Article 152.

Use and disposal of goods released under the customs procedure "Temporary import"

 

1. Goods released under the customs procedure "Temporary import" shall be used and disposed of with the restrictions prescribed by Article 222 of the Customs Code of the Union.

2. Goods released under the customs procedure "Temporary import" must be under the actual possession and use of the declarant, except for cases prescribed by the Customs Code of the Union.

 

Article 153.

Transfer by the declarant of goods released under the customs procedure "Temporary import" to the possession of and use by another person without the permission of customs authorities

 

1. The declarant may transfer goods released under the customs procedure "Temporary import" to the possession of and use by another person without the permission of the customs authorities, upon the grounds prescribed by point 3 of Article 222 of the Customs Code of the Union.

2. The person whereto goods released under the customs procedure "Temporary import" have been transferred by the right of possession and use shall bear joint liability with the declarant for paying customs fees subject to payment.

3. The customs authority shall, pursuant to Article 340 of the Customs Code of the Union, have the right to request documents and information on the actual location of goods released under the customs procedure "Temporary import", and in case of transferring the goods to another person — information on that person.

 

Article 154.

Transfer by the declarant of goods released under the customs procedure "Temporary import" to the possession of and use by another person upon the permission of customs authorities

 

1. Transfer of goods released under the customs procedure "Temporary Import" to the possession of and use by another person upon the permission of the customs authorities shall be carried out in accordance with point 4 of Article 222 of the Customs Code of the Union.

2. In case the declarant transfers the temporarily imported goods to another person upon the written permit of the customs authority by the right of possession and use, that person shall assume the obligation to observe the requirements and conditions prescribed by the customs legislation of the Union and the customs legislation of the Republic of Armenia.

3. The declarant shall be obliged to pay the amounts of customs duty and taxes for goods released under the customs procedure "Temporary import" for the time period during which the declarant has used the goods, where an obligation to pay customs duty and taxes has arisen under the indicated customs procedure.

4. The person whereto goods released under the customs procedure "Temporary import" have been transferred shall have rights and bear liabilities from the day the customs authority takes a decision on transferring the temporarily imported goods, in accordance with Chapter 29 of the Customs Code of the Union.

 

Article 155.

Procedure for granting a permit of customs authorities to transfer goods released under the customs procedure "Temporary import" to the possession of and use by another person and the form of the application therefor

 

1. The procedure for granting a permit of the customs authorities to transfer goods released under the customs procedure "Temporary import" to the possession of and use by another person and the form of the application therefor shall be defined by the Government.

 

Article 156.

Time limits for temporary import of goods

 

1. The time limit for the customs procedure "Temporary import" shall be defined by Article 221 of the Customs Code of the Union.

2. Goods may be placed under the customs procedure "Temporary import" for a time period requested by the declarant but not exceeding the time limits prescribed by points 1 and 2 of Article 221 of the Customs Code of the Union. Moreover, the initially requested time period may be extended based on the application of the declarant after obtaining a permit for extending the time limit not exceeding the maximum time limits prescribed by points 1 and 2 of Article 221 of the Customs Code of the Union, no later than five working days.

3. Based on the application submitted to the customs authority, the extension of the time limit for the customs procedure "Temporary import" shall be carried out in accordance with point 4 of Article 221 of the Customs Code of the Union, by making amendments to the declaration as prescribed by the decision of the Commission.

4. The customs authority shall examine the application on extending the time limit for temporary import within three working days and shall inform the declarant of extending the time limit for temporary import.

5. The grounds for rejection shall be indicated in the rejection of the customs authority to extend the time limit for temporary export. The customs authority shall notify the declarant in writing of the mentioned rejection.

6. In case of temporary import of goods for which the Commission has established shorter or longer time limits for temporary import, the customs authority which has carried out the placement of the goods under the specified procedure shall extend the time limit indicated in part 2 of this Article within the time limits prescribed by the Commission.

7. In accordance with point 4 of Article 221 of the Customs Code of the Union, the form of the application for extension of the temporary import time limit and the form of the decision of the customs authority on the results of consideration of the application shall be defined by the Government.

 

CHAPTER 27

 

CUSTOMS PROCEDURE "TEMPORARY EXPORT"

 

Article 157.

Customs procedure "Temporary export"

 

1. The essence of the customs procedure "Temporary export" and the relations pertaining to placing goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 30 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

 

Article 158.

Time limits for the customs procedure "Temporary export"

 

1. The time limit for the customs procedure "Temporary export" shall be defined by Article 229 of the Customs Code of the Union.

2. Depending on the purposes and conditions of temporary export, the declarant shall submit the time limit for the customs procedure "Temporary export", which may not exceed the time period of the transaction according whereto the goods shall be temporarily exported from the customs territory of the Union.

3. Where the temporary export of goods is carried out on the basis of such a transaction for which no time periods are provided for, the time limit for temporary export shall be determined and submitted by the declarant.

4. Based on the application submitted to the customs authority, the extension of the time limit for the customs procedure "Temporary export" shall be carried out in accordance with point 3 of Article 229 of the Customs Code of the Union, within five working days after obtaining a permit for extension of the time limit through making amendments to the declaration as defined by the decision of the Commission.

5. The customs authority shall, within three working days, examine the application on extending the time limit for temporary export and notify the declarant of extending the time limit for temporary export.

6. The grounds for rejection must be indicated in the rejection of the customs authority to extend the time limit for temporary export. The customs authority shall notify the declarant in writing of the mentioned rejection.

7. In accordance with point 1 of Article 229 of the Customs Code of the Union, the Government may establish temporary export deadlines for certain types of goods.

 

Article 159.

Form of application for extension of the time limit for the customs procedure "Temporary export" and form of the decision of the customs authority

 

1. The form of the application for extension of the time limit for temporary export and the form of the decision of the customs authority on the results of the consideration of the application shall be defined by the Government.

 

CHAPTER 28

 

CUSTOMS PROCEDURE "RE-IMPORT"

 

Article 160.

Customs procedure "Re-import"

 

1. The essence of the customs procedure "Re-import" and the relations pertaining to placing goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 31 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

 

Article 161.

Payment of amounts of taxes, surcharges and other amounts in case of placement of goods under the customs procedure "Re-import"

 

1. Pursuant to sub-point 3 of point 2 of Article 236 of the Customs Code of the Union, during placement of goods under the customs procedure "Re-import", previously unpaid or refunded taxes for those goods during export from the customs territory of the Union, interest calculated thereon, surcharges, or other amounts received directly or indirectly received as fees shall be subject to compensation as defined by the Government.

 

CHAPTER 29

 

CUSTOMS PROCEDURE "RE-EXPORT"

 

Article 162.

Customs procedure "Re-export"

 

1. The essence of the customs procedure "Re-export" and the relations pertaining to placing goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 32 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

 

Article 163.

Refund (offset) of amounts of import customs duty, taxes

 

1. In case the goods previously placed under the customs procedure "Release for domestic consumption" are placed under the customs procedure "Re-export" in accordance with sub-points 6 and 7 of point 2 of Article 238 of the Customs Code of the Union, the paid amounts of import customs duty and taxes shall be refunded (offset) as prescribed by Chapter 10 of this Law, where those goods have been actually exported from the territory of the Union.

 

CHAPTER 30

 

CUSTOMS PROCEDURE "DUTY-FREE TRADE"

 

Article 164.

Customs procedure "Duty-free trade"

 

1. The essence of the customs procedure "Duty-free trade" and the relations pertaining to placing goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 33 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

 

Article 165.

Duty-free shops

 

1. The requirements for facilities, equipment, location and conditions for the sale of goods of duty-free shops shall be prescribed by Article 286 of this Law.

2. The possessor of a duty-free shop shall be obliged to maintain record-registration of and submit reports on the goods whereto the customs procedure "Duty-free trade" has been applied pursuant to Article 197 of this Law.

3. In case of importing the goods bought from duty-free shops of member states of the Union into the territory of the Republic of Armenia, as well as at places of arrival of the Republic of Armenia, where their in-kind and value sizes exceed the full sizes and values prescribed by the legislation of the Union for goods imported by natural persons as accompanying baggage, a passenger customs declaration shall be submitted in accordance with the legislation of the Union.

4. The following persons shall have the right to buy goods from the trade halls of duty-free shops:

(1) the referred to in point 2 of Article 243 of the Customs Code of the Customs Union;

(2) flight crew of aircrafts departing from the Republic of Armenia through the area of the given duty-free shop;

(3) commanders of aircrafts or other authorised persons departing from the Republic of Armenia through the customs control zone of the place of activities of the given duty-free shop, in order to sell to the passengers in the aircraft. The persons provided for by this point shall be supplied with goods by duty-free shops based on contracts concluded with airlines.

5. In accordance with point 4 of Article 243 of the Customs Code of the Union, the sale of goods by the persons referred to in sub-point 2 of point 2 of Article 243 of the Customs Code of the Union in duty-free shops shall be permitted in all places of transportation of goods across the state border of the Republic of Armenia.

 

CHAPTER 31

 

CUSTOMS PROCEDURE "DESTRUCTION"

 

Article 166.

Customs procedure "Destruction"

 

1. The essence of the customs procedure "Destruction" and the relations pertaining to placing goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 34 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

 

Article 167.

Conditions for placing goods under the customs procedure "Destruction"

 

1. Before submitting a customs declaration completed in accordance with the procedure prescribed by the customs procedure "Destruction", the declarant shall submit an application on the desire to declare under the customs procedure "Destruction" to the customs authority to which the customs declaration must be submitted.

2. The opinion on the possibility, place and method of destruction issued by the state authorised body defined by the Government shall be submitted attached to the application provided for by part 1 of this Article, which shall indicate information on the place, method of destruction of goods, and possible wastes resulting from destruction.

3. The destruction of goods shall be carried out by the persons who have the document confirming the relevant authority of the competent authorities.

4. The act on destruction issued by the organisation having performed the testing, inspections, experiments or demonstration of the characteristics and specification of temporarily imported foreign goods may also be used as the opinion specified in part 2 of this Article, where those goods have been temporarily imported with or through them for the purpose of carrying out testing, inspections, experiments, demonstration of characteristics and specifications and have been destroyed or damaged during the performance of those actions.

5. Facts recognised by the customs authorities as defined by the Government, provided for by part 3 of Article 190 of this Law, may be used as an opinion confirming the possibility of destruction of the goods.

6. In the case provided for by part 5 of this Article, the documents submitted to the customs authority shall contain the information provided for by part 1 of this Article and part 1 of Article 168 of this Law.

7. After the destruction of the goods, the declarant shall be obliged to submit the documents confirming the fact of destruction to the customs authority.

 

Article 168.

Destruction of goods

 

1. The destruction of goods placed under the customs procedure "Destruction" shall be carried out within the time limit prescribed by the customs authorities, which shall be determined taking into account the actual destruction time limits of the declared goods, the method and place of destruction, as well as the opinion issued by the state authorised body, provided for by part 2 of Article 167 of this Law.

2. Destruction of goods shall be carried out at the expense of the declarant.

3. Destruction of goods shall be carried out under the supervision of the body (commission, person or body of the state administration system) defined by the Government. Where necessary, specialists from other bodies of the state administration system and independent experts may be involved in the process of destruction of goods.

4. Destruction shall be carried out through:

(1) thermal, chemical, mechanical or other means of impact (combusting, disrupting, breaking, installing, etc.), as a result of which the goods shall be irrevocably destructed. The method of destruction shall ensure the impossibility of using goods or the impossibility of restoration thereof to the initial state for the use according to the intended purpose;

(2) the dismantling, disassembly, mechanical damage (including making holes, tearing) and damaging by other means, provided that causing such damages will exclude further restoration and use of the goods.

5. After the actual destruction of the goods, an act on the destruction of the goods shall be drawn up in the form prescribed by the Government, which shall indicate:

(1) the place and date of destruction of goods;

(2) the information on the declarant of the customs procedure;

(3) information on persons present during the destruction;

(4) the name of the goods being destroyed, their quantity and unit of measurement;

(5) the method of destruction of goods;

(6) the presence and amount of wastes after destruction, as well as the possibility of further use thereof;

(7) other information included in the act on destruction.

6. The act on destruction shall be signed by the official(s) of the customs authority and the declarant. It shall be drawn up in the quantity defined by the Government and distributed according to the distribution procedure defined by the Government.

7. The fact of destruction of goods may also be preserved by video- recording or photo-recording, which shall be attached to the act on destruction.

8. The customs procedure "Destruction" shall be completed on the basis of the act defined by this Article.

9. The procedure for destruction of goods placed under the customs procedure "Destruction" shall be defined by the Government.

 

CHAPTER 32

 

CUSTOMS PROCEDURE "ABANDONING IN FAVOUR OF THE STATE"

 

Article 169.

Customs procedure "Abandoning in favour of the state"

 

1. The essence of the customs procedure "Abandoning in favour of the state" and the relations pertaining to placing goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 35 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

 

 

Article 170.

Procedure for declaring goods under the customs procedure "Abandoning in favour of the state"

 

1. Goods shall be declared under the customs procedure "Abandoning in favour of the state" upon the permission of the customs authority.

2. For the purpose of obtaining a permit, the declarant shall apply to the customs authority in writing, by indicating in the application the name, quantity, value, location, CN FEA codes of goods and the brief summary of reasons for abandoning the goods in favour of the state.

3. The customs authority shall examine the application referred to in part 2 of this Article within five working days and render a decision on granting a permit for placing goods under the customs procedure "Abandoning in favour of the state" or on rejecting to grant a permit in case of abandoning goods included in the list approved by the decision of the Commission, as well as goods prohibited for import into the customs territory of the Union, prohibited for circulation in the territory of the member states of the Union.

4. For the purpose of declaring goods under the customs procedure "Abandoning in favour of the state", the declarant shall, in parallel with goods placed under the customs procedure "Abandoning in favour of the state", also submit to the customs authority a substantiated calculation report on the observance of the requirement prescribed by the third paragraph of Article 252 of the Customs Code of the Union.

5. Where the goods are not handed over to the customs authorities within three working days after the release of the goods under the customs procedure "Abandoning in favour of the state", the customs authorities shall declare the release of the goods as invalid.

6. After handover by the declarant of the goods placed under the customs procedure "Abandoning in favour of the state" by the customs authorities, they shall be handed over to the authorised state bodies prescribed by the Government for further disposal.

7. During the handover of goods, a transfer and acceptance act shall be drawn up, the form of which shall be defined by the Committee.

 

Article 171.

Liability for applying customs procedure "Abandoning in favour of the state"

 

1. The customs authorities shall not compensate for property claims of persons having powers with respect to the goods declared under the customs procedure "Abandoning in favour of the state".

 

CHAPTER 33

 

CUSTOMS PROCEDURE“SPECIAL”

 

Article 172.

Customs procedure "Special"

 

1. The essence of the customs procedure “Special” and the relations pertaining to placing goods under this customs procedure shall be regulated in accordance with the provisions prescribed by Chapter 36 of the Customs Code of the Union and the peculiarities prescribed by this Chapter.

2. In accordance with Article 254 of the Customs Code of the Union, the Government shall define the conditions and procedure for placing individual goods under the customs procedure "Special" in the cases provided for by the decision of the Commission.

 

SECTION 5

 

PECULIARITIES OF THE PROCEDURE AND CONDITIONS FOR TRANSPORTATION OF GOODS OF SPECIFIC CATEGORY ACROSS THE CUSTOMS BORDER

 

CHAPTER 34

 

PECULIARITIES OF THE PROCEDURE AND CONDITIONS FOR TRANSPORTATION OF GOODS FOR PERSONAL USE

 

Article 173.

Two-way system used during transportation of goods for personal use across the customs border of the Union

 

1. Customs formalities with regard to transportation of goods for personal use by natural persons across the border of the Republic of Armenia shall be carried out in accordance with the provisions defined by Chapter 37 of the Customs Code of the Union and the peculiarities provided for by this Law.

2. During transportation of goods for personal use across the customs border of the Union, the two-way system shall be applied in accordance with Article 257 of the Customs Code of the Union.

3. The Government shall, in accordance with point 5 of Article 257 of the Customs Code of the Union, define the list of the places of transportation of goods across the customs border (as well as the procedure for drawing up such a list) where the two-way system of customs control shall be applied.

 

Article 174.

Customs operations performed over goods for personal use

 

1. Customs operations over goods for personal use shall be carried out in accordance with Article 258 of the Customs Code of the Union.

2. Customs operations over passengers travelling by railway transport shall be carried out without leaving the means of transport, except for cases when the purpose of leaving the means of transport is to comply with the customs legislation of the Union and the Republic of Armenia.

3. The sequence of carrying out customs operations without leaving the railway transport shall be defined by the Government.

4. The Committee shall, in accordance with point 6 of Article 258 of the Customs Code of the Union, define the procedure for carrying out customs operations over goods for personal use temporarily imported by natural persons, releasing them and confirming the fact that they are beyond customs control, in the cases provided for by the decision of the Commission and with regard to the non-regulated part.

5. When importing back goods previously exported from the customs territory of the Union, in the case not exceeding the value, weight or quantity norms of payment of customs duties and taxes, in accordance with point 2 of Article 265 of the Customs Code of the Union, in the absence of identification of those goods, the person shall submit such information and documents to the customs authorities, which certify that the goods being imported back are the same goods that have been previously exported thereby.

6. Where payment of customs duty and taxes at uniform rates is envisaged for goods imported into the Republic of Armenia by natural persons via international postal or courier deliveries or as accompanying baggage, the payment thereof shall be made on the basis of the customs credit order issued by the customs authorities, the form and the procedure for completion whereof shall be established by the Commission.

7. In cases where payment of taxes which are part of the lump sum customs fee is envisaged for the goods imported into the Republic of Armenia as accompanying baggage, the payment thereof shall be made as prescribed by the Tax Code of the Republic of Armenia.

8. The customs authority shall ensure the access for natural persons to the information on the rules of transportation of goods, including by way of distributing leaflets drawn up in Armenian, Russian and foreign languages in transport and tourism organisations, as well as by placing information panels regarding goods transported by natural persons in places of the performance of customs operations.

9. Goods for personal use of natural persons from non-member states of the Union shall be imported to the territory of the Republic of Armenia via international postal deliveries or by a carrier without paying customs duties and taxes, where the value of the goods does not exceed AMD 200,000 and/or the weight thereof does not exceed 31 kilograms.

10. In accordance with point 26 of Article 266 of the Customs Code of the Union, the form of calculation of customs duty and taxes collected at uniform rates and in the form of a lump sum customs fee, the procedure for completing it and making amendments (supplements) thereto shall be defined by the Committee.

11. The import of goods by natural persons who are not individual entrepreneurs shall be considered as import carried out for the purpose of entrepreneurial activity, where the quantities of goods imported to the Republic of Armenia by natural persons or to their address (including according to the countries that are members of the Union or not) exceed the obvious commercial quantities of goods imported to the Republic of Armenia prescribed by the Government.

12. The quantities prescribed by part 11 of this Article shall not include the goods for personal use of the persons referred to in Article 177 of this Law, the in-kind size of which is defined by the Government, as well as the goods imported as goods for personal use in accordance with the Customs Code of the Union.

13. Customs duty rate of 0 % shall be applied to goods exported from the territory of the Republic of Armenia by natural persons.

14. In accordance with the decision of the Council of the Commission, natural persons of the Republic of Armenia may import vehicles and motor vehicles for personal use received as inheritance, trailers for vehicles and motor vehicles, one of each, through accompanied or unaccompanied baggage, as well as other goods for personal use, by being exempted from payment of customs duties and taxes in case of submitting, as prescribed, the documents certifying the fact of having received the given goods or means of transport as inheritance in accordance with the legislation of the Republic of Armenia.

15. Natural persons, upon being exempted from paying customs duties and taxes, may import cultural property, originals of documents of national archive funds and archive documents into the Republic of Armenia in any way, which are included in point 4 of Annex 7 to the Treaty on the Union, and in respect of which non-tariff regulation measures are applied in trade with third countries, in case of confirmation of the status of these goods through the procedure defined by the Government.

 

Article 175.

Origination, calculation, fulfilment, securing the fulfilment, termination and time limit for payment of the obligation to pay customs duties and taxes during import of goods for personal use

 

1. The origination, calculation, termination and time limits for payment of the obligation to pay customs duties and taxes during the import of goods for personal use shall be defined in accordance with Article 268 of the Customs Code of the Union.

2. The Government may, in accordance with point 17 of Article 268 of the Customs Code of the Union, establish the origin and termination and other circumstances of the deadline for payment of obligations to pay customs duties and taxes for goods for personal use transported by a foreign natural person arriving in the Republic of Armenia for permanent residence, aiming at obtaining the status of refugee or forcibly displaced persons.

3. Obligations with respect to paying import customs duties and taxes for goods for personal use shall be fulfilled by natural persons in the manner and within the time limits prescribed by Articles 266, 268 and 269 of the Customs Code of the Union.

4. In case of failure to fulfil or improper fulfilment of obligations with respect to customs duties and taxes by the payer within the time limits prescribed by the Customs Code of the Union, the customs authority shall send a notice on the need to pay customs duties and taxes to the payer and the persons bearing joint liability therewith, on the working day following the deadline for the payment of customs duties and taxes, in accordance with the Customs Code of the Union and this Law.

5. The notification form sent by the customs authorities in accordance with part 4 of this Article shall contain information on the declarant, declared goods, customs duties subject to payment, amount of taxes, customs duties, penalties subject to payment for failure to pay taxes within the prescribed time limit, time limit for payment of unpaid or partially paid customs duties and taxes and other necessary information.

6. The form of the notification sent by the customs authorities in accordance with part 4 of this Article, the procedure for its completion and sending, as well as amending and cancelling it shall be defined by the Committee.

7. The Government may, in accordance with point 6 of Article 270 of the Customs Code of the Union, define cases other than those prescribed by Article 270 of the Customs Code of the Union, when the notification provided for by part 4 of this Article shall not be sent by the customs authorities.

8. The statute of limitations for the fulfilment of the obligations to pay customs duties and taxes for the import of goods for personal use shall be five years, which shall be calculated from the day following the day of expiry of the time limit for the fulfilment of such obligations on the basis of the documents provided for by the customs legislation of the Union and this Law.

9. In case of failure to fulfil or improper fulfilment of the obligation to pay customs duties and taxes for the import of goods for personal use, the customs authority shall apply measures aimed at their levy in accordance with this Law and the Customs Code of the Union. The means of levying execution of customs duties, taxes by the customs authorities shall not be applied in the cases defined by the Government.

10. In accordance with point 13 Article 270 of the Customs Code of the Union, the amounts of customs duties, taxes, state duty collected for the performance of customs operations, as well as penalties for the import of goods for personal use, the confiscation of which is impossible by the customs authorities, shall be recognised as bad and shall be written off upon the grounds and through the procedure prescribed by the Government.

11. Obligations with respect to payment of customs duty and taxes for goods for personal use shall be fulfilled in accordance with Article 270 of the Customs Code of the Union and this Article.

12. In accordance with point 1 of Article 270 of the Customs Code of the Union, during the import of goods for personal use by natural persons, the obligations for payment of customs duty and taxes may also be fulfilled by authorised persons thereof.

13. In accordance with point 2 of Article 270 of the Customs Code of the Union, the obligations with respect to payment of import custom duty and taxes of a natural person declared as having no active legal capacity shall be fulfilled by the guardian, and in the case of a natural person declared as missing — by the property manager of the person declared as missing.

14. Pursuant to point 10 of Article 270 of the Customs Code of the Union, in order to collect the outstanding obligations of natural persons for the payment of customs duty and taxes, the customs authority shall apply to the court for levying execution on the goods as prescribed by law.

15. The Government may, in accordance with point 2 of Article 271 of the Customs Code of the Union, define additional cases besides those provided for by the Customs Code of the Union, when goods for personal use shall be cleared in the territory of the Republic of Armenia under the customs procedure "Customs transit" without providing security for fulfilment of the obligation with respect to paying customs duty and taxes.

16. Pursuant to point 3 of Article 271 of the Customs Code of the Union, the customs representative may, upon his or her wish, use the security for fulfilment of the obligations, he or she has submitted, for the purpose of fulfilling the obligation with respect to paying customs duty and taxes subject to payment for goods for personal use imported by a natural person, in accordance with this Law.

17. The Government may, in accordance with point 6 of Article 271 of the Customs Code of the Union, define fixed amounts for securing the fulfilment of the obligations with respect to payment of customs duty and taxes subject to payment for separate types (categories) of goods for personal use.

 

Article 176.

Documents submitted during customs declaration of goods for personal use and temporary import of means of transport for personal use

 

1. The documents submitted during customs declaration of goods for personal use shall be prescribed by Article 261 of the Customs Code of the Union.

2. The Government shall define the list of documents that confirm the fact of recognising foreign natural persons as arriving for permanent residence or as a refugee or forcibly displaced persons as prescribed by legislation, provided for by sub-point 5 of point 1 of Article 261 of the Customs Code of the Union.

3. Means of transport for personal use shall be imported in accordance with Article 264 of the Customs Code of the Union.

4. For the purpose of applying the privilege provided for by point 2 of Article 264 of the Customs Code of the Union, the document confirming the diplomatic status of the person issued by the state authorised body shall be submitted to the customs authorities.

 

Article 177.

Privileges of customs duties on goods for personal use imported by a number of natural persons

 

1. The concept "goods for personal use of a natural person recognised as a person moving to the Republic of Armenia for permanent residence or a foreign natural person having obtained the status of refugee or forcibly displaced person" shall mean the following in this Article:

used goods belonging to the mentioned persons (except for means of transport for personal use), which are intended for the personal, family, home and other needs of a natural person not related to the implementation of entrepreneurial activities, were acquired before the date of issue of the document confirming the fact of recognising the foreign natural person as a person having moved to the Republic of Armenia for permanent residence or the document confirming the fact of obtaining the status of refugee or forcibly displaced person by that person, in accordance with the legislation of the Republic of Armenia, and do not exceed the full sizes prescribed by the Government and vehicles and motor vehicles that are means of transport for personal use, trailers thereof, no more than one unit of each type, which were registered and were under the ownership of the foreign natural person (or were acquired under a credit or leasing agreement and were under the possession thereof) in the country of former residence for at least six months before the date of issue of the document confirming the fact of recognising the natural person as moving to the Republic of Armenia for permanent residence or document confirming the fact of having the status of refugee, forcibly displaced person, who was recognised as a person having moved to the Republic of Armenia for permanent residence or obtained the status of refugee, forcibly displaced person in the Republic of Armenia. The specified means of transport acquired on the basis of a credit or leasing agreement must be under the ownership of that person at the time of implementation of customs operations aimed at releasing them for free circulation thereof.

2. Customs fee privileges prescribed by the Commission in accordance with point 8 of Article 266 of the Customs Code of the Union shall be applied to foreign natural persons moving to the territory of the Republic of Armenia for permanent residence or having obtained the status of refugee or forcibly displaced person or natural persons of the Republic of Armenia having temporarily resided in a foreign country for at least 12 months before arriving in the Republic of Armenia or goods for personal use imported by foreign natural persons having obtained a work permit in the Republic of Armenia in the fields of activity defined by the Government.

3. A natural person having the citizenship of the Republic of Armenia or the status of special residence of the Republic of Armenia or permanent (long-term) residence of the Republic of Armenia or, in the case defined by an international treaty, a status equal thereto, to whom the authorised body of the Government, maintaining the state population register, has issued a document confirming the fact of moving to the Republic of Armenia for permanent residence shall be recognised as foreign natural person moving to the Republic of Armenia for permanent residence, pursuant to the legislation of the Republic of Armenia.

4. The document confirming the recognition of the fact of moving to the Republic of Armenia for permanent residence shall be provided to the natural person referred to in part 2 of this Article, who was absent from the Republic of Armenia for at least 1280 days during the period of 2550 days preceding the date of applying to the authorised body referred to in the same part in order to receive that document.

5. The authorised body of the Government shall provide the document prescribed by part 3 of this Article to the same person only once, except for the cases where the given person, having previously obtained the document confirming the fact of moving to the Republic of Armenia for permanent residence, has not enjoyed the customs fees privilege envisaged for foreign natural persons arriving for permanent residence within 18 months from the date of obtaining.

6. Foreign natural persons recognised as persons moving to the Republic of Armenia for permanent residence or having the status of refugee or forcibly displaced person may import goods for their personal use into the Republic of Armenia with a privilege, where they submit the document confirming the relevant status to the customs authorities, issued by the authorised body of the Government, and the document confirming the fact of residence in the previous country of residence, in case of concurrently ensuring the following conditions:

(1) import from the previous country of residence to the customs territory of the Union shall be carried out no later than within 18 months from the date of issue of the document confirming the fact of recognition of the foreign natural person as a person having moved to the Republic of Armenia for permanent residence or the document confirming the fact of obtaining the status of refugee, forcibly displaced person by that person, pursuant to the legislation of the Republic of Armenia;

(2) the goods for personal use have been acquired on the basis of a document confirming the fact of recognising a foreign natural person as a person having moved to the Republic of Armenia for permanent residence or before the date of issue of the document confirming the fact of obtaining the status of refugee, forcibly displaced person by that person, in accordance with the legislation of the Republic of Armenia; moreover, vehicles and motor vehicles that are means of transport for personal use, trailers thereof were registered and were under the ownership of the foreign natural person (or were acquired under a credit or leasing agreement and were under the possession thereof) who has been recognised as a person having moved to the Republic of Armenia for permanent residence or obtained the status of refugee, forcibly displaced person, in the former country of residence for at least six months before the date of issue of the document confirming the fact of recognising the foreign natural person as a person having moved to the Republic of Armenia for permanent residence or the document confirming the fact of obtaining the status of refugee, forcibly displaced person by that natural person, in accordance with the legislation of the Republic of Armenia. The specified means of transport acquired on the basis of a credit or leasing agreement must be under the ownership of that person at the time of implementation of customs operations aimed at releasing them for free circulation;

(3) in accordance with the legislation of the Republic of Armenia, in connection with the recognition of that natural person as a person having moved to the Republic of Armenia for permanent residence or obtaining the status of refugee, forcibly displaced person by that person, goods for personal use with exemption from payment of customs duties and taxes have not been previously imported by that natural person into the customs territory of the Union;

(4) goods for personal use of a natural person recognised as a person moving to the Republic of Armenia for permanent residence or a foreign natural person having obtained the status of refugee or forcibly displaced person shall not exceed the full sizes prescribed by the Government.

7. The recognition of the fact of movement of a natural person to the Republic of Armenia for permanent residence, as well as the circumstance and time period of stay in the territory of the Republic of Armenia or absence from the territory of the Republic of Armenia shall be determined by the authorised body of the Government maintaining the state population register, based on the information about the crossing of the state border of the Republic of Armenia regarding the given natural person.

8. In accordance with this Article, the procedures for issuing a document confirming the application of a privilege to foreign natural persons recognised as a person having moved to the territory of the Republic of Armenia or to foreign natural persons having obtained the status of refugee or forcibly displaced person in the territory of the Republic of Armenia, the procedure for checking the circumstance and time period of having been absent from the territory of the Republic of Armenia, providing a document to a person confirming the fact of recognition of permanent residence shall be defined by the Government.

9. As prescribed by the legislation of the Republic of Armenia, a natural person of the Republic of Armenia having a permanent place residence in the Republic of Armenia and temporarily residing in a foreign country may import goods for personal use with a value not exceeding EUR 5,000 into the Republic of Armenia with accompanied or unaccompanied baggage without paying customs duties and taxes, exception for means of transport for personal use and body of means of transport for personal use, where the person has resided in a foreign country for at least 12 months during the considered time period before arriving in the Republic of Armenia.

10. Within the meaning of application of part 9 of this Article, the considered time period shall be deemed to be the period of 420 days preceding the day of arrival in the Republic of Armenia due to the fact of transportation of accompanied or unaccompanied baggage by the person.

11. For the purpose of granting the privilege provided for by part 9 of this Article, the person shall be obliged to submit a written application to the customs authority within 60 days following the day of arrival in the Republic of Armenia, by attaching to the application a document confirming the fact of residing in a foreign country.

12. A person may enjoy the privilege provided for by part 9 of this Article once in three years.

13. The persons referred to in parts 6 and 9 of this Article may not concurrently enjoy more than one privilege referred to in this Article.

14. A foreign natural person having obtained a work permit in the fields of activity defined by the Government may import used goods for personal use into the territory of the Republic of Armenia in accompanied or unaccompanied baggage during the time period of stay in the territory of the Republic of Armenia with exemption from paying customs duties and taxes, on condition of submitting that work permit.

15. The arising and termination of the obligation to pay customs duties and taxes on goods placed with the privileges of customs fees defined by this Article, time limits for payment and calculation thereof shall be regulated by Articles 268 and 269 of the Customs Code of the Union, as well as by Article 175 of this Law.

16. In accordance with point 2 of Article 259 of the Customs Code of the Union, temporary storage of goods for personal use of the persons defined by the mentioned point may be carried out in temporary storage warehouses or in a place designated by the mentioned persons, with the permission of the customs authorities, for the time limits defined by point 5 of Article 259 of the Customs Code of the Union.

17. The requirements for places other than temporary storage warehouses, referred to in part 16 of this Article, shall be defined by the Government.

(Article 177 supplemented by HO-387-N of 11 December 2023)

 

Article 178.

Stay of means of transport for personal use of resident natural persons of the member states of the Union in the territory of the Republic of Armenia

 

1. Resident natural persons of the member states of the Union shall submit an identification document and the registration document of the means of transport to the customs authorities when crossing the state border of the Republic of Armenia by means of transport for personal use registered in other member states of the Union, based whereon the customs authority shall record-register their entry into the territory of the Republic of Armenia in the automatic customs declaration system.

2. The means of transport referred to in part 1 of this Article may be in the territory of the Republic of Armenia for the period of stay of these natural persons in the Republic of Armenia, not exceeding the time period defined by law.

3. The means of transport referred to in part 1 of this Article may be used in the territory of the Republic of Armenia exclusively by the person importing the means of transport or by the person authorised thereby and must be taken out of the Republic of Armenia before the expiry of the time period provided for by part 2 of this Article.

 

CHAPTER 35

 

PECULIARITIES OF THE PROCEDURE AND CONDITIONS FOR TRANSPORTATION OF MEANS OF TRANSPORT CARRYING OUT INTERNATIONAL CARRIAGES AND RESOURCES

 

Article 179.

Transportation of means of transport carrying out international carriages, spare parts and equipment thereof across the state border of the Republic of Armenia

 

1. Customs formalities related to transportation of means of transport carrying out international carriages, spare parts and equipment thereof across the state border of the Republic of Armenia shall be performed in accordance with the provisions prescribed by Chapter 38 of the Customs Code of the Union and this Article.

2. In accordance with point 6 of Article 275 of the Customs Code of the Union, the Government may define a restriction on the frequency of use of railway means of transport for international carriage and containers transported via the indicated means of transport in domestic carriages.

3. Pursuant to point 13 of Article 275 of the Customs Code of the Union, the Government shall define the procedure for submission of information on temporarily imported railway transport or containers used during railway transportation to the customs authorities.

4. In accordance with point 2 of Article 278 of the Customs Code of the Union, persons authorised by carriers may act as declarants during the declaration of means of transport for international carriage.

 

Article 180.

Transportation of resources across the customs border of the Union

 

1. Customs formalities related to the transportation of resources across the customs border of the Union shall be performed in accordance with the provisions prescribed by Chapter 39 of the Customs Code of the Union and this Article.

2. Pursuant to point 5 of Article 281 of the Customs Code of the Union, goods placed under the customs procedure "Duty-free trade" may be declared and released as resources, where they are loaded onto the railway transport directly from duty-free trade shops located at the points of transportation of goods across the customs border.

3. The Government may, in accordance with point 7 of Article 283 of the Customs Code of the Union, define the procedure and conditions for the use of goods placed as resources from duty-free trade shop and loaded onto the railway transport.

 

CHAPTER 36

 

PECULIARITIES OF TRANSPORTATION OF GOODS VIA INTERNATIONAL 

POSTAL DELIVERIES AND BY PERSONS OF SEPARATE CATEGORIES

 

Article 181.

Transportation of goods via international postal deliveries

 

1. Customs formalities related to the transportation of goods via international postal deliveries across the state border of the Republic of Armenia shall be performed in accordance with Chapter 40 of the Customs Code of the Union, this Chapter and international treaties concluded between the member states of the Union.

2. Customs formalities for goods transported via international postal deliveries shall be performed at international postal exchange offices or other places established by the Committee.

3. The Government shall establish the international postal exchange offices where customs operations shall be carried out over goods transported via international postal deliveries.

4. In case of transportation of goods for personal use by the postal operator, the postal operator may act as a declarant, in case of which the postal operator shall bear the obligations and enjoys the rights prescribed for the declarant by the Customs Code of the Union.

5. In accordance with point 3 of Article 285 of the Customs Code of the Union, the national postal operator shall submit information to the customs authorities as prescribed by the Government on the documents of natural persons who are recipients of goods for personal use transported via international postal deliveries.

6. In accordance with point 10 of Article 286 of the Customs Code of the Union, during the declaration of goods exported via international postal deliveries under the customs procedure "Export", as well as customs declaration of goods exported from the customs territory of the Union under the customs procedure "Re-import" with international postal deliveries and not handed over to the recipients, the documents provided for by the acts of the Universal Postal Union may be used as declarations of goods.

7. During the export of goods imported via international postal deliveries and unclaimed, where the imported goods have not undergone changes, except for natural wear and tear or changes caused by their storage under normal conditions, they may be exported from the territory of the Republic of Armenia under the customs procedure "Export" by submitting to customs authorities the documents used during the import of goods prescribed by the acts of the Universal Postal Union.

8. During the import of goods exported via international postal deliveries and unclaimed, where the exported goods have not undergone changes, except for natural wear and tear or changes caused by their storage under normal conditions, they may be imported into the territory of the Republic of Armenia under the customs procedure "Re-import" by observing the conditions of the mentioned procedure and submitting to the customs authorities the documents used during the export prescribed by the acts of the Universal Postal Union.

9. In accordance with the second paragraph of point 5 of Article 286 of the Customs Code of the Union and part 6 of Article 7 of this Law, goods sent via international postal deliveries, which are not subject to import into the customs territory of the Union in accordance with the established prohibitions and restrictions, must be immediately exported from the territory of the Republic of Armenia by the postal operator, unless otherwise provided for by the international treaties of the Republic of Armenia.

10. Pursuant to point 11 of Article 286 of the Customs Code of the Union, when using documents provided for by the acts of the Universal Postal Union and accompanying international postal deliveries as declaration of goods or passenger customs declaration, the information containing information subject to indication in the declaration of goods or passenger customs declaration regarding goods sent by the designated postal operator submitted electronically may be used as an electronic version of such declaration of goods or passenger customs declaration.

11. Recalculation of foreign currency for goods for personal use transported via international postal deliveries, prescribed by point 18 of Article 266 of the Customs Code of the Union, shall be done at the exchange rate published by the Central Bank of the Republic of Armenia effective as of the day of registration of the customs declaration submitted for those goods by the customs authorities.

12. Customs duty and taxes shall be paid for goods imported into the territory of the Republic of Armenia by natural persons via international postal or courier deliveries from non-member states of the Union at the rates defined by the Commission.

13. Declarations of goods or passenger customs declarations submitted for express cargo transported from non-member states of the Union may be replaced by simplified forms of declarations submitted by express cargo carriers, prescribed by the customs legislation of the Union.

 

Article 182.

Transportation of goods by persons of separate categories

 

1. Customs formalities related to the transportation of goods belonging to diplomatic and consular representations of foreign states, international organisations, representations of foreign states adjunct to international organisations, their staff, as well as foreign persons enjoying privileges in accordance with the international treaties of the Republic of Armenia, across the state border of the Republic of Armenia shall be carried out in accordance with the provisions prescribed by Chapter 42 of the Customs Code of the Union and this Article.

2. In case conditions more preferential than those provided for by Chapter 42 of the Customs Code of the Union are defined by international treaties of the Republic of Armenia for transporting goods belonging to the foreign persons indicated in part 1 of this Article across the state border of the Republic of Armenia, the conditions prescribed by the international treaties of the Republic of Armenia shall apply.

3. Privileges for transportation of goods belonging to the persons indicated in part 1 of this Article shall be defined by the customs legislation of the Union and international treaties of the Republic of Armenia.

4. In case of transportation of goods belonging to the persons indicated in part 1 of this Article across the state border of the Republic of Armenia, the customs declaration shall be conducted by submitting a written application by the head of the given organisation or the person authorised thereby to the customs authority. The application shall be submitted in two copies and shall contain information on the name, place of location of the sender and the recipient of the goods, and the description, quantity (weight, volume) of the goods.

5. Pursuant to points 1 and 2 of Article 298, as well as points 1 and 2 of Article 299 of the Customs Code of the Union, in the case of import of means of transportation, the time limit of privileges applied for the means of transportation shall also be indicated in the application provided for by this part.

6. The following shall be submitted attached to the application:

(1) transport (transportation) and commercial documents;

(2) documents confirming the observance of restrictions (where necessary).

7. A person transporting goods belonging to the persons indicated in 1 part of this Article shall submit to the customs authority an identification document, as well as a document confirming the status of the person or a power of attorney, the validity period specified wherein shall confirm the time limit for enjoying the privileges prescribed by the Customs Code of the Union and the international treaties of the Republic of Armenia by the given person.

8. The Government may, in accordance with point 6 of Article 301 of the Customs Code of the Union, define the list of states with which the principle of reciprocity for transporting goods for personal use by diplomatic and consular couriers with exemption from customs scrutiny and without payment of customs duties and taxes is provided for, as well as may define the procedure for transporting the goods indicated in this part.

9. The privilege provided for by point 3 of Article 299 of the Customs Code of the Union for employees of the staff serving consular offices, as well as family members thereof shall be applied to the persons prescribed by this part, for the time period of their stay in the Republic of Armenia, in case of submitting the document confirming that time period to the customs authorities.

 

CHAPTER 37

 

PECULIARITIES OF TRANSPORTATION OF GOODS VIA PIPELINE AND POWER LINES

 

Article 183.

Peculiarities of transportation of goods via pipeline and declaration thereof

 

1. During the transportation of goods via pipeline across the state border of the Republic of Armenia, customs formalities shall be performed in accordance with Chapter 41 of the Customs Code of the Union.

2. In accordance with point 7 of Article 290 of the Customs Code of the Union, the operations of loading, unloading and reloading of goods being transported via pipeline transport under the customs control shall be carried out upon the permit of the customs authorities.

The procedure for granting the permit provided for by this part shall be defined by the Committee.

3. The Government may, in accordance with point 9 of Article 290 of the Customs Code of the Union, define the peculiarities of customs operations and customs control exercised over goods transported via pipeline transport.

4. The declarant shall submit accurate information on the goods transported via pipeline under the customs procedure "Customs transit" for supplies carried out during each calendar month to the customs authorities no later than the last day of the month following the given month, in the form defined by the Committee.

 

Article 184.

Peculiarities of transportation of goods via power lines and declaration thereof

 

1. During the transportation of goods via power lines across the state border of the Republic of Armenia, customs formalities shall be performed in accordance with Chapter 41 of the Customs Code of the Union.

2. The Government may define the peculiarities of declaration of goods transported via power lines across the state border of the Republic of Armenia.

3. The Committee may, jointly with the body of the state administration system of the Republic of Armenia authorised in the field of energy, establish a procedure for calculating the amount of electricity transported via power lines across the state border of the Republic of Armenia as prescribed by Article 291 of the Customs Code of the Union, which differs from the procedure prescribed by point 4 of Article 291 of the Customs Code of the Union.

4. The Government may define a time limit for submitting a customs declaration for the transportation of electricity via power lines, which differs from the time limit prescribed by point 2 of Article 291 of the Customs Code of the Union.

5. Conditioned by the parallel operation of energy systems, the peculiarities of customs declaration of unplanned (technological) balance-flows of electricity shall be defined by the Government.

6. In case of transportation of electricity having the status of goods of the Union between the Republic of Armenia and the member states of the Union through the territory of a non-member state of the Union, the submission of the application provided for by point 7 of Article 291 of the Customs Code of the Union shall not be required.

7. The Government may define a time limit for providing information on the volume of electricity actually transported by the carrier to the customs authority in case the electricity is transported through the customs territory of the Union via power lines, which differs from the time limit prescribed by point 10 of Article 291 of the Customs Code of the Union, as well as may define other information submitted to the customs authorities.

8. The committee may define the peculiarities of customs operations and customs control in case transportation of electricity through the customs territory of the Union via power lines, as well as the procedure for making notes by customs authorities on the documents prescribed by point 4 of Article 291 of the Customs Code of the Union.

 

Article 185.

Installation of metering devices for goods transported via pipeline and power lines

 

1. The Committee shall, jointly with the body of the state administration system of the Republic of Armenia authorised in the field of energy, define the places for installation of metering devices for goods transported via pipeline and power lines across the state border of the Republic of Armenia.

2. The customs authorities shall, jointly with the body of the state administration system of the Republic of Armenia authorised in the field of energy, exercise control over data of the metering devices for goods transported via pipeline and power lines, by applying identification means.

3. The Committee may, jointly with the body of the state administration system of the Republic of Armenia authorised in the field of energy, define the procedure for determining the quantity of goods transported via power lines.

4. For the purpose of record-registration of goods transported via power lines or pipeline, the metering devices provided for by the contracts for transaction of transportation of such goods may be used, which may be located both in the countries of export or import of goods, as well as in the territories of bordering or other states.

5. The Committee shall define the form of the protocol drawn up on the installation and removal of identification means on the metering devices for goods transported via power lines or pipeline.

 

CHAPTER 38

 

PECULIARITIES OF TRANSPORTATION OF GOODS BETWEEN THE REPUBLIC OF ARMENIA AND OTHER MEMBER STATES OF THE UNION THROUGH THE TERRITORY OF NON-MEMBER STATES OF THE UNION

 

Article 186.

Transportation of goods through the territory of non-member states of the Union

 

1. During the transportation of goods between the Republic of Armenia and other member states of the Union through the territory of non-member states of the Union, customs operations shall be performed in accordance with Chapter 43 of the Customs Code of the Union.

2. In accordance with point 7 of Article 304 of the Customs Code of the Union, operations aimed at placement under the customs procedure "Customs transit" for the transportation of goods of the Union between the Republic of Armenia and other member states of the Union through the territory of non-member states of the Union via railway transport shall be performed in the sub-divisions established by the Committee.

3. For the purpose of transporting foreign goods placed under the customs procedures "Inward processing", "Processing for domestic consumption" and "Temporary import" from the territory of the Republic of Armenia into the territory of other member states of the Union without discharging the mentioned customs procedures, those goods may be placed under the customs procedure "Customs transit" upon the wish of the declarant, on the basis of the permit of the customs authority, wherein the sub-division where the given goods are placed under the customs procedure "Customs transit" shall be indicated.

 

SECTION 6

 

EXERCISING CUSTOMS CONTROL

 

CHAPTER 39

 

GENERAL PROVISIONS ON EXERCISING CUSTOMS CONTROL

 

Article 187.

Exercising customs control

 

1. Customs authorities shall exercise customs control in accordance with the customs legislation of the Union and the Republic of Armenia.

2. Objects of customs control shall be prescribed by Article 311 of the Customs Code of the Union, and the places for exercising customs control shall be prescribed by point 12 of Article 310 of the Customs Code of the Union.

3. In accordance with point 6 of Article 310 of the Customs Code of the Union, customs control shall be exercised by customs authorities, including with the application of informational systems.

4. During the exercise of customs control, customs authorities shall apply the principle of selectivity and limit themselves to the forms of customs control sufficient for observing the provisions of the customs legislation of the Republic of Armenia and the Union. When selecting the forms of customs control and measures ensuring the exercise of customs control , customs authorities shall apply the technical resources for customs control and the analysis of the information available to them.

5. For the purpose of increasing the efficiency of exercising customs control, customs authorities shall cooperate with other state bodies exercising control and persons carrying out foreign economic activities, in accordance with the legislation of the Union and the Republic of Armenia.

6. Pursuant to the Customs Code of the Union and this Law, the forms of decisions, protocols, acts and other documents drawn up by customs authorities during the exercise of separate forms of customs control shall be prescribed by the Committee, where they are not prescribed by the customs legislation of the Union.

7. Pursuant to points 3 and 4 of Article 310 of the Customs Code of the Union, the Government shall prescribe the guide for the application of the risk management system when selecting the objects, forms or means of customs control and the application of the forms and means of customs control by customs authorities.

8. Pursuant to point 5 of Article 310 of the Customs Code of the Union, customs authorities may apply the forms of customs control prescribed by the Customs Code of the Union and the measures ensuring the exercise thereof while exercising competences other than those related to customs control vested in the customs authorities by law.

9. Pursuant to point 2 of Article 316 of the Customs Code of the Union, the Government may define the periodicity of the exercise of customs control over conditionally released goods referred to in part 1 of Article 126 of the Customs Code of the Union after the release of the goods and the requirements for the exercise of customs control.

10. (part repealed by HO-113-N of 28 February 2024)

(Article 187 amended by HO-113-N of 28 February 2024)

 

Article 188.

Selectivity of customs control and the risk management system

 

1. When selecting the forms and measures of customs control, a risk management system shall be applied.

2. The risk management system shall be applied for the purpose of the effective use of the resources of customs authorities and prevention of violations of the customs legislation of the Union, the customs legislation of the Republic of Armenia, and those in other sectors vested in the customs authorities. While exercising the control vested in the customs authorities, the risk management system shall be applied to counteract violations, which:

(1) are of repeated nature;

(2) are related to customs duties, evasion of payment of taxes, as well as execution of financial transactions with the residents registered in the countries (geographical areas) having specific liberal tax systems prescribed by the Government;

(3) are related to ensuring economic safety, protection of economic interests and domestic market;

(4) pose risk to the competitiveness of national goods producers;

(5) pertain to other interests of the Union and the Republic of Armenia vested in the customs authorities.

3. The risk management system shall be applied in accordance with the provisions prescribed by Chapter 50 of the Customs Code of the Union and this Law.

4. Pursuant to point 6 of Article 378 of the Customs Code of the Union, the Committee shall define the strategy and tactics for the application of the risk management system by customs authorities, the methodology of the risk assessment standards and the risk assessment levels.

5. Pursuant to sub-point 3 of point 3 of Article 378 of the Customs Code of the Union, the Committee shall — with the application of the risk management system and through issuing a relevant certificate as prescribed by the Government —certify the law abidance of the persons with regard to the goods being transported whereby no need to apply risk reduction measures shall arise.

6. For the purpose of accelerating and simplifying the transportation of goods across the customs border of the Republic of Armenia for the persons holding the certificate specified in part 5 of this Article, simplified procedures may be defined, the list and procedure for application whereof shall be defined by the Committee.

 

Article 189.

Customs control zones

 

1. Customs control zones shall be defined by Article 319 of the Customs Code of the Union and the legislation of the Republic of Armenia.

2. For the purpose of exercising customs control, the Government may establish customs control zones at the state border crossing points of the Republic of Armenia, in places of customs formalities, and locations of customs authorities.

3. Performance of commercial activity, movement of goods, means of transport in, entry and exit of persons, including officials of other state bodies to and from the premises of the customs control zone may only take place upon the permit and under the control of the customs authorities, except for the cases prescribed by the legislation of the Union and the Republic of Armenia.

3.1 The permit for commercial activity in the customs control zones that are state or community ownership, provided for by part 3 of this Article, shall be issued on the basis of a tender, and the authorised body of the state property management sector or the head of the community shall conclude a contract with the bidder declared as winner as a result thereof for the direct lease of the relevant premises being customs control zone.

3.2. The procedure for holding the tender provided for by part 3.1 of this Article shall be defined by the Government.

4. Performance of actions in the premises of the customs control zone within the scope of the powers vested in the officials of the state bodies by law may take place through cooperation with customs authorities, under their control.

5. The provisions of this Article shall not extend to the customs control zones being established in constructions of the authorised economic operator, open spaces and other premises.

6. Mandatory rules of conduct in customs control zones, including the rules for the movement of persons and means of transportation in customs control zones shall be prescribed by the Government.

7. Technical requirements for customs control zones for the purpose of increasing the efficiency of customs control may be prescribed by the Committee.

(Article 189 supplemented by HO-317-N of 25 October 2023, supplemented, amended by HO-113-N of 28 February 2024)

(Law HO-317-N of 25 October 2023 contains a transitional provision)

(pursuant to Article 15 of Law HO-113-N of 28 February 2024, before being declared as a winner by the result of the tender provided for by Article 5 of Law HO-113-N of 28 February 2024, only the persons included in the registry of duty-free shop owners may carry out activities in places determined by the Committee for duty-free shops prior to the adoption of the pre-qualification procedure provided for by part 2 of Article 284 of the Law)

 

Article 190.

Time limits for exercising customs control

 

1. The time limits for the goods to be under customs control shall be prescribed by Article 14 of the Customs Code of the Union.

2. After releasing the goods, customs authorities may exercise customs control within three years after the termination of the period of staying under customs control prescribed by Article 14 of the Customs Code of the Union.

3. The procedure for recognition, by customs authorities, of the fulfilment of the circumstances prescribed by sub-points 5 and 8 of point 7, sub-point 1 of point 9 and sub-point 3 of point 11 of Article 14, as well as sub-point 6 of point 3 of Article 153 and sub-point 2 of point 1 of Article 224 of the Customs Code of the Union shall be defined by the Government.

 

Article 191.

Restrictions on goods and means of transport placed under customs control

 

1. Partial or complete handover, alienation or destruction of goods and means of transport under customs control without the permit of the customs authority, as well as loading, unloading, transloading, elimination of damages of packages, unpacking, packaging, re-packaging of goods and means of transport or changing the means of identification placed on such goods or packages accompanying them shall be prohibited.

2. In case of loss of the goods and means of transport specified in part 1 of this Article, the person shall bear the responsibility prescribed by this Law.

 

CHAPTER 40

 

FORMS OF CUSTOMS CONTROL AND MEASURES ENSURING EXERCISE OF CUSTOMS CONTROL

 

Article 192.

Exercising customs control

 

1. Customs authorities shall exercise customs control in the forms of customs control prescribed by Chapter 45 of the Customs Code of the Union and by the measures ensuring the exercise of customs control prescribed by Chapter 46, in accordance with the peculiarities prescribed by this Law.

2. In accordance with sub-point 14 of point 1 of Article 338 of the Customs Code of the Union, the office customs examination, as a means ensuring customs control, may be applied as defined by Articles 198 and 204 of this Law.

3. Additional measures ensuring the exercise of customs control may be prescribed by law.

 

Article 193.

Peculiarities of verifying customs and other documents or information

 

1. The verification of customs and other documents or information shall be carried out in accordance with Articles 324-326 of the Customs Code of the Union.

2. In accordance with point 2 of Article 326 of the Customs Code of the Union, results of the verification of customs and other documents or information shall be formulated in the form defined by the Committee.

3. The form of the decision rendered by the customs authority in the cases provided for by point 3 of Article 326 of the Customs Code of the Union shall be defined by the Committee.

4. In accordance with point 5 of Article 324 of the Customs Code of the Union, the Government shall prescribe the cases of verification — having started after the release of the goods — of the customs and other documents or information submitted with regard to the customs declaration, the documents verifying the information filled in the customs declaration and submitted to the customs authorities, the information completed in the customs declaration or contained in the documents submitted to the customs authorities and the procedure for notifying the person of the exercise of such form of customs control.

 

Article 194.

Peculiarities of customs scrutiny

 

1. Customs scrutiny by customs authorities shall be exercised in accordance with Article 328 of the Customs Code of the Union.

2. The Government shall, in accordance with point 8 of Article 328 of the Customs Code of the Union, prescribe the cases when the findings of customs scrutiny exercised by the customs authorities shall be formulated by sealing the documents or making relevant notes in the documents.

 

Article 195.

Peculiarities of the visual customs scrutiny of premises and constructions

 

1. Visual customs scrutiny of premises and constructions shall be carried out in accordance with Article 330 of the Customs Code of the Union and this Law.

2. In accordance with point 5 of Article 330 of the Customs Code of the Union, the visual customs scrutiny of premises and constructions by customs authorities shall be carried out on the basis of the order of the head of the customs authority, the form whereof shall be defined by the Committee.

3. In accordance with point 4 of Article 330 of the Customs Code of the Union, the visual customs scrutiny of the premises and constructions in residential areas may be carried out upon the permission of the owner or as prescribed by the Criminal Procedure Code of the Republic of Armenia.

4. In accordance with point 6 of Article 330 of the Customs Code of the Union, customs authorities may — suppressing the resistance — enter the premises and constructions of the person undergoing inspection, except for the cases when the legislation of the Republic of Armenia prescribes a different procedure for the entry of officials of state bodies into certain facilities.

5. Pursuant to point 7 of Article 330 of the Customs Code of the Union, the Government may define a special procedure for the entry of customs authorities to the premises of certain facilities.

6. In accordance with point 8 of Article 330 of the Customs Code of the Union, based on the reasoned decision of the customs authority, the time limit for the visual customs scrutiny of premises and constructions may be extended by a maximum of two working days.

 

Article 196.

Record-registration of goods under customs control and customs operations exercised over them

 

1. For the purpose of ensuring the exercise of customs control, the record-registration of goods under customs control shall be carried out in accordance with Article 345 of the Customs Code of the Union.

2. The procedure for and the form of record-registration of goods under customs control, as well as the customs operations exercised over such goods shall be defined by the Committee.

3. Pursuant to point 3 of Article 345 of the Customs Code of the Union, customs authorities may carry out separated record-registration of declarants.

The cases of, procedure and time limits for the record-registration of declarants provided for by this part shall be defined by the Committee.

 

Article 197.

Inspection of the system for record-registration of goods and accountability

 

1. Pursuant to Article 350 of the Customs Code of the Union, inspection of the system for record-registration of goods and accountability, as a measure ensuring the exercise of customs control, shall be carried out with regard to persons carrying out activity in the field of customs affairs, authorised economic operators, as well as goods placed under the customs procedures "Free customs zone" and "Free customs warehouse".

2. Only one inspection of the system for record-registration of goods may be carried out within the same period of inspection. Results of the inspection shall be summarised by a protocol the form whereof shall be defined by the Committee.

3. The inspection of the system for record-registration of goods shall be carried out through the comparison of the information available in the reports submitted to the customs authorities and existing at the disposal of the customs authorities, as well as of the information available in accounting reports and initial documents submitted to the customs authorities.

4. Reports may be submitted to the customs authorities electronically, with or without an electronic digital signature, which must be accompanied by the signature — in hard copy — of the head, chief accountant of the organisation or persons authorised thereby.

5. Customs representatives shall — in the manner and form defined by the Committee, once in each six months, including on the 15th day of the month following that time period — submit a report on activities thereof to the customs authorities.

6. Persons possessing or using foreign goods and goods having the status of goods of the Union, placed under the customs procedure "Free warehouse", shall submit the report on the goods being stored, transported, sold, processed or used, as well as on the execution of customs operations upon the request of the customs authorities, within the scope of the customs control being exercised by the customs authorities.

The form of the report specified in the first paragraph of this part, the procedure for the completion and submission thereof, as well as the time limit for the submission thereof shall be defined by the Committee.

7. Record-registration of goods placed under the customs procedure "Free customs zone" and of goods made of (derived from) goods placed under the customs procedure "Free customs zone" and the submission of reports shall be carried out in accordance with Article 142 of this Law.

8. The procedure for record-registration and submission of reports by authorised economic operators shall be prescribed by Article 294 of this Law.

9. The form and procedure for the submission of reports submitted to customs authorities by possessors of temporary storage warehouses, customs warehouses, duty-free shops, and by customs carriers shall be defined by the Committee.

10. Failure to submit the reports provided for by this Article or submission of false information shall entail liability in accordance with the laws of the Republic of Armenia.

11. In accordance with point 2 of Article 350 of the Customs Code of the Union, the Government shall define the procedure for the inspection of the compliance — with the prescribed requirements — of the system for record-registration of goods of persons contending for the status of authorised economic operators or who are authorised economic operators, as well as persons that contending for being included in the register of possessors of free warehouse and possessors of free customs warehouse and contend to getting involved in the register of the possessors of the free customs warehouse.

 

Article 198.

Office and field customs inspections, office customs examination

 

1. Office customs inspection shall be carried out in accordance with the Customs Code of the Union, this Law and other legal acts, without a decision (order) on commencing an inspection at the locations of customs authorities, as well as without a visit to the person undergoing inspection and a notification on administrative proceedings.

2. Field customs inspection shall be carried out in accordance with the Customs Code of the Union, this Law and other legal acts, based on the decision (order) of the manager (head) of the customs authority, deputy manager (deputy head) of the customs authority authorised thereby or persons substituting them on conducting a field customs inspection, the form whereof shall be approved by the Committee. The procedure for notifying the person undergoing inspection of commencing a field customs inspection, and the time limits for the conduct thereof shall be defined by the Customs Code of the Union.

3. Office customs examination shall be a measure ensuring the exercise of customs control applied by the customs authority within the time limits specified by the third paragraph of point 7 of Article 310 of the Customs Code of the Union, the objectives whereof shall be the detection, prevention of violations of the requirements prescribed by legislation and the request for fulfilling the requirements prescribed by legislation within the scope of the powers vested in the customs authorities.

4. Office customs examination shall be conducted exclusively in the customs authority, as prescribed by the Committee. The office customs examination shall be conducted without the requirement to submit additional documents.

5. In accordance with point 8 of Article 331 of the Customs Code of the Union, for the purpose of participation in the customs inspection, based on the decision of the customs authority, experts or specialists from other state bodies may be involved upon necessity.

6. The procedure for the involvement of experts or specialists from other state bodies for the purpose of customs inspection shall be defined by the Government.

7. The types of field customs inspections shall be defined by point 2 of Article 333 of the Customs Code of the Union.

8. In accordance with point 3 of Article 333 of the Customs Code of the Union, additional types of field customs inspections, grounds , time limits for conduct thereof and peculiarities of the procedure for conduct thereof may be prescribed by law.

9. In addition to the information provided for by point 6 of Article 333 of the Customs Code of the Union, the decision (order) on conducting field customs inspection may contain other information relating to the given field customs inspection.

10. Pursuant to point 8 of Article 333 of the Custom Code of the Union, the Committee may — upon the necessity to amend and supplement the information prescribed by sub-points 5-9 of point 6 of Article 333 of the Customs Code of the Union –define the procedure for making amendments and supplements to the decision (order) on conducting a field customs inspection until the end of the conduct thereof.

11. The grounds for assigning unscheduled field customs inspections shall be prescribed by point 16 of Article 333 of the Customs Code of the Union.

12. Pursuant to sub-point 9 of point 16 of Article 333 of the Customs Code of the Union, additional grounds for unscheduled field customs inspections, other than those prescribed by point 16 of Article 333 of the Customs Code of the Union, shall be prescribed by law.

13. The date of handing over the decision (order) on conducting a field customs inspection to the person undergoing inspection in person shall be considered the start of conducting the field customs inspection, and where the decision (order) on conducting a field customs inspection is handed over to the person undergoing inspection via registered mail with acknowledgement of delivery to the address of that person, the date of handing over indicated in the acknowledgement shall be considered the start of conducting the field customs inspection. In case when the registered mail is returned to the addressee with an indication on the reasons for failure to hand it over, the start of conducting the field customs inspection shall be considered the return day of the registered mail.

14. During the conduct of an office customs inspection, the customs authorities shall notify the persons undergoing inspection of their rights and responsibilities in the following cases:

(1) where a need arises within the scope of the office customs inspection to request additional documents or information from the persons undergoing inspection;

(2) where it is envisaged to draw up an office customs inspection act by the results of the office customs inspection, whereby obligations are set forth for the person undergoing inspection, unless a notification has been sent to the person undergoing inspection under the case prescribed by point 1 of this part before performing the actions prescribed by this point.

15. The procedure for and form of notifications of persons undergoing inspection regarding the results of the office customs inspection shall be defined by the Committee.

 

Article 199.

Time limit and procedure for suspension of a field customs inspection

 

1. The time limit for the field customs inspection may be suspended on the grounds prescribed by point 24 of Article 333 of the Customs Code of the Union, based on the report of the person (persons) conducting customs inspection, upon the decision of the head of the customs authority.

2. The time limit for the field customs inspection may be suspended for a term of more than nine months, but no more than 12 months, unless the customs authorities have received such data that may affect the final result of the field customs inspection.

3. The suspension and resumption of the field customs inspection shall be formulated by the decision of the head of the customs authority. The customs authority shall notify in writing the person undergoing inspection of that decision within one working day after the adoption of the specified decision.

4. In case of making request to the competent authorities of the member states of the Union or of foreign countries within the scope of the international treaties of the Republic of Armenia, the time limit for the field customs inspection shall be suspended until the day of receiving the response to the request, but no longer than the time limit prescribed by part 2 of this Article.

 

Article 200.

Entry of officials of customs authorities into the facility of the person undergoing inspection for the purpose of conducting a field customs inspection

 

1. The person undergoing inspection shall have the right to reject to allow officials of customs authorities to enter the facility thereof in the cases prescribed by point 3 of Article 334 of the Customs Code of the Union.

2. In accordance with point 4 of Article 334 of the Customs Code of the Union, in case of unjustified rejection of the entry of officials of the customs authority conducting a field customs inspection and of other officials taking part in the field customs inspection by the person undergoing inspection to the facility thereof, a protocol shall be drawn up in the form defined by the Committee.

3. The protocol specified in part 2 of this Article shall be signed by the officials of the customs authority conducting customs inspection, the person undergoing inspection or the representative thereof, and the carbon copy thereof shall be handed over to the person undergoing inspection or to the representative thereof.

4. In case of rejection by the person undergoing inspection or the representative thereof to sign the protocol specified in part 2 of this Article, the official of the customs authority conducting customs inspection shall make a relevant note in the protocol. The person undergoing inspection shall have the right to give a written explanation on the rejection to sign the protocol.

5. In case of an unjustified rejection of the entry of officials of the customs authority and of other officials taking part in the field customs inspection by the person undergoing inspection to the facility thereof, the officials of the customs authority and the other officials taking part in the field customs inspection may enter such facilities by suppressing the resistance and opening the locked constructions, except for the cases when a different procedure for entry of officials of state bodies to certain facilities is defined by the legislation of the Republic of Armenia.

 

Article 201.

Procedure for putting a lien on goods, seizing goods and documents during a field customs inspection

 

1. Putting a lien on goods and seizure of goods shall be carried out for the purposes provided for by sub-point 6 of point 2 of Article 335 of the Customs Code of the Union.

2. Grounds for putting a lien on goods during a field customs inspection shall be:

(1) transportation of goods not bearing special stamps, identification signs or markings done in other ways, where the stamps, identification signs and markings of the goods are provided for by the customs legislation of the Republic of Armenia or the Union, or detection of goods with forged stamps or means of identification;

(2) absence of information confirming facts of customs declaration or release of goods in trade documents of the person being inspected, where, pursuant to the customs legislation of the Republic of Armenia or the Union, indication of such information in trade documents is mandatory, as well as reveal of inaccurate information or absence of documents provided for by the customs legislation of the Republic of Armenia or the Union;

(3) reveal of facts of use of conditionally released goods for a purpose other than the intended purpose;

(4) reveal of facts on failure to observe the conditions or procedure for granting benefits prescribed for paying customs duty and taxes;

(5) reveal of facts attesting to the use of goods in violation of the conditions and requirements of the customs procedure.

3. Lien on goods shall be a ban on the disposal and use thereof. The goods under lien shall be transferred to the storage of their possessor or another person having powers over those goods.

4. Use of goods under lien may be permitted by the head of the customs authority conducting the field customs inspection or the official of the customs authority authorised thereby , based on the application of the person having power over such goods.

5. Transfer of goods under lien to other persons, the alienation or otherwise disposal thereof shall be prohibited.

6. Goods under inspection may be seized, where it has been revealed that their import into the customs territory of the Union or into the territory of the Republic of Armenia is prohibited, as well as where there are sufficient grounds to assume that the lien on the goods is not a sufficient measure for their storage.

7. Seized goods shall be placed in temporary storage warehouses, as prescribed by this Law.

8. Where the submission of carbon copies of documents is considered insufficient during a field customs inspection, where there are grounds to assume that the originals of the documents may be destroyed, concealed, corrected or modified, the official of the customs authority shall have the right to seize the originals of the documents. During the seizure of the originals of the documents, a protocol on seizure of the originals of the documents shall be drawn up in two copies.

9. One copy of the protocol prescribed by part 8 of this Article shall be transferred to the person being inspected along with the carbon copies of the seized documents. The number and date of the protocol on the seizure of the originals of the documents shall be indicated on the carbon copies of the documents. The carbon copies of the documents shall be signed by the officials seizing them.

10. Seizure of goods, documents and putting a lien on goods shall be carried out based on the substantiated decision of the official conducting the field customs inspection, in the presence of the person being inspected and at least two attesting witnesses.

11. All goods, documents being seized or goods whereon lien is put shall be presented to the attesting witnesses, as well as to other persons taking part in the seizure actions provided for by this Law, after which, upon necessity, they shall be packed, sealed or lead sealed.

12. Seized documents shall be numbered and signed by the person being inspected or by the person authorised thereby.

13. In case of refusal to sign the documents being seized by the person being inspected or the person authorised thereby, the official conducting the field customs inspection shall make a relevant note in the protocol on the seizure of documents.

14. Seizure of goods, documents, putting a lien on goods shall be formulated by a separate protocol, wherein the seized goods, documents or the goods whereon lien has been put shall be described in detail, with the indication of the names, quantity and individual characteristics thereof. The specified protocol shall be signed by the person having conducted the seizure or lien and the person being inspected, as well as the attesting witnesses.

15. Return of seized goods, documents and lifting of the lien shall be carried out no later than the day of completion of the field customs inspection, except for cases where the goods are subject to be taken in accordance with this Law, or in the case where the goods and documents are subject to lifting of the lien or are subject to seizure, in accordance with the Administrative Offences Code of the Republic of Armenia or the Criminal Procedure Code of the Republic of Armenia.

16. The return of seized goods and documents and the lifting of the lien put in accordance with this Article shall be carried out based on the decision of the official of the customs authority having carried out the field customs inspection.

17. The return of seized goods, documents, lifting of the lien put shall be formulated by a protocol signed by the official of the customs authority and the person having been inspected, which shall be drawn up in two copies. One copy of the protocol shall be handed over to the person having been inspected, and the other copy shall be kept at the customs authority.

18. The costs of the storage of seized goods shall be borne by the person having the right to dispose of, possess and use the seized goods.

19. In case no violation of the provisions of the customs affairs legislation, related to the transportation of the goods being inspected, are revealed by the results of the inspection, costs of storage of the seized goods shall be compensated from the State Budget of the Republic of Armenia, as prescribed by the Government.

20. In cases where the seized goods and documents are not subject to return in accordance with part 9 of this Article, after the day of completion of the field customs inspection they shall be considered:

(1) put under lien on the grounds provided for by Article 248 of this Law; or

(2) taken within the scope of the proceedings with regard to the case on an administrative offence; or

(3) seized within the scope of criminal proceedings.

21. In the cases indicated in part 20 of this Article, the number of the protocol based whereon the goods and documents have been seized shall be indicated in the field customs inspection act.

22. Seized goods unclaimed within two months following the day of completion of the field customs inspection shall be transferred to the Republic of Armenia in accordance with a judicial act within the scope of criminal proceedings.

23. After elimination of the grounds for seizure of goods or the need to store them, those goods shall be returned to the economic entity within one working day.

 

Article 202.

Rights and obligations of officials of customs authorities when conducting a customs inspection

 

1. Rights and obligations of officials of customs authorities when conducting a customs inspection shall be prescribed by Article 335 of the Customs Code of the Union and this Law.

2. In accordance with sub-point 12 of point 2 of Article 335 of the Customs Code of the Union, additional rights for officials of customs authorities during field customs inspection in addition to the rights prescribed by the Customs Code of the Union, which may be exercised by the customs authorities during the field customs inspection, shall be prescribed by law.

 

Article 203.

Rights and obligations of the person being inspected, during a customs inspection

 

1. Rights and obligations of the persons being inspected, during a customs inspection, shall be prescribed by Article 336 of the Customs Code of the Union and this Law.

 

Article 204.

Summarising the results of the customs inspection and rendering decisions based thereon, summarising the results of the office customs examination

 

1. The results of a customs inspection conducted by customs authorities shall be summarised:

(1) by an office customs inspection act in case of conducting an office customs inspection;

(2) by a field customs inspection act in case of conducting a field customs inspection.

2. A customs inspection act shall be drawn up in two copies and signed by the officials of the customs authority having conducted the customs inspection.

3. The customs inspection act shall state the following:

(1) information on the person being inspected (full name, taxpayer identification number (TIN), location);

(2) information on the officials of customs authorities having conducted the customs inspection (position, name, surname);

(3) categorised description of revealed facts (elements) of violation of the customs legislation of the Union or the Republic of Armenia, with a reference to the legal acts the requirements whereof have been violated, or information on the absence of revealed facts (elements) of violation;

(4) opinions on revealed violations or elimination of their consequences, as well as recommendations on customs fees subject to additional calculation and collection and other fees payable to customs authorities and the amounts of penalties calculated against them in accordance with the legislation of the Republic of Armenia;

(5) other information prescribed by point 28 of Article 333 of the Customs Code of the Union.

4. The date of drawing up the customs inspection act shall be deemed to be the date of completion of the customs inspection.

5. The customs inspection act shall be approved by the head of the customs authority having conducted the customs inspection or the official having relevant competence.

6. In case of revealing a failure to pay or incomplete payment of customs duty, special, anti-dumping and compensation duties, as well as other taxes and fees payable to the customs authorities, the head of the customs authority having conducted the inspection or the official having relevant competence shall adopt the decision (decisions) prescribed by part 11 of this Article.

7. One copy of the customs inspection act shall be attached to the materials of the customs inspection, and the other copy shall be handed over to the person being inspected within five working days after the completion of the customs inspection. The customs inspection act may be delivered to the person being inspected by a registered mail, including by acknowledgement of receipt, in person with the signature of the addressee, as well as in such ways (including through electronic mail) that enable to confirm the fact that the addressee has received the act or has been duly notified in cases prescribed by law.

8. In case of refusal to receive the customs inspection act, the recipient shall make a note thereon on the inspection act and shall be deemed to have been duly notified from the day of refusal to receive the inspection act.

9. Where the inspection act is sent to the addressee by a registered mail with acknowledgment of receipt or by other methods specified by this Article, the date of receipt specified in the notice shall be deemed to be the day of receipt. In case when the registered mail is returned to the addressee with a note on the reasons for not delivering it, the day of return of the registered mail shall be deemed to be the day of receipt.

10. The copy of the customs inspection act shall, within five working days after completion of the customs inspection, be sent to the customs authority (authorities) having conducted the release of goods.

11. In accordance with point 10 of Article 331 of the Customs Code of the Union, the procedure for rendering decisions by the customs authority by the result of the customs inspection shall be defined by the Committee.

12. In cases prescribed by part 6 of this Article, the person being inspected shall be obliged to fulfil — within 10 working days after receiving the customs inspection act and the decision (decisions) provided for by part 11 of this Article — the payment of the amounts set forth by the act and the decision (decisions) and other requirements prescribed by the legislation. In case of payment of the indicated amounts within the time limits prescribed by this part, penalties prescribed by law shall not be calculated for that time period. In case of revealing facts of administrative or criminal offence by the results of the customs inspection, their further course shall be ensured as prescribed by the legislation of the Republic of Armenia.

13. The procedure for actions carried out by the officials of customs authorities during the customs inspection, the procedure for formulating the results of the customs inspection, as well as the forms of the decisions, protocols and other procedural documents drawn up during the customs inspection during the application of the provisions prescribed by Articles 331-336 of the Customs Code of the Union and this Law shall be defined by the Committee.

14. The Committee may, in accordance with point 27 of Article 333 of the Customs Code of the Union, define the procedure for becoming familiar with the initial results of the field customs inspection and submitting objections thereto, if any.

15. The customs inspection act and the decision rendered based thereon may be appealed within two months as prescribed by Article 37 of the Law "On customs service" or through judicial procedure.

16. In case of detecting inaccuracies, inconsistencies or violations as a result of the office customs examination, a protocol on the results of the office customs examination shall be drawn up in the form defined by the Committee.

17. The protocol on the results of the office customs examination shall contain the following:

(1) number of the protocol on the results of office customs examination, the month, day and year of drawing it up;

(2) position, name, surname of the official(s) having conducted the office customs examination;

(3) full name and taxpayer identification number (TIN) of the declarant;

(4) number and date of the declaration of goods, as a result of examination of which an inconsistency has been revealed;

(5) general description of (potential) violations of requirements prescribed by the Customs Code of the Union, other international treaties and acts of the sector of customs regulation, legal acts of the Republic of Armenia regulating the field of customs regulation.

18. The protocol on the results of the office customs examination shall be drawn up in two copies and signed by the official(s) having conducted it.

19. The customs authority shall submit the protocol on the results of the office customs examination to the declarant or the authorised person thereof through the procedure and within the time limits prescribed by the Committee.

20. The declarant or the authorised person thereof shall, within 10 working days after receiving the protocol on the results of the office customs examination,

(1) in case of agreeing with the inaccuracies, discrepancies and/or violations recorded, submit the adjustment of the declaration of goods or another document prescribed by the Customs Code of the Union or this Law, which attests to making amendments and/or supplements to the customs declaration or other document replacing it;

(2) in case of not agreeing with the inaccuracies, discrepancies and/or violations recorded, submit the written objections thereof to the customs authority, which the customs authority shall use during customs control.

21. In case the declarant or the person authorised thereby does not respond within the time limit indicated in part 21 of this Article, or if the written objections submitted to the customs authority are not deemed to be substantiated by the customs authority, a decision on conducting an office customs inspection or an external customs inspection shall be rendered.

 

Article 205.

Provision of documents and information necessary for exercising customs control

 

1. The declarant, persons carrying out activities in the sector of customs affairs, and other concerned persons shall, in accordance with Article 340 of the Customs Code of the Union, be obliged to provide the documents and information necessary for the exercise of the customs control to the customs authorities.

2. Persons transferring, under customs control, goods and means of transport across the state border of the Republic of Armenia or carrying out other activities shall be obliged to submit to customs authorities the documents and the information necessary for exercising customs control, the list and the procedure for provision whereof shall be prescribed by the Government.

3. The declarant shall be obliged to submit along with the customs declaration the documents and the information mentioned in this Article, as well as goods and means of transport for customs control, except for cases prescribed by the legislation of the Republic of Armenia and the Customs Code of the Union.

4. When exercising customs control, by the result of the request to the customs authorities, the information or documents provided for by part 1 of Article 229 of this Law, which have been received by the customs authorities in accordance with the Customs Code of the Union, other international treaties and acts of the sector of customs regulation, international treaties of the members states of the Union with third parties or the legislation of the member states of the Union, shall serve as a basis for recoding (summarising) the results of customs control and setting relevant obligations based thereon.

 

Article 206.

Provision, by banks, of documents and information necessary for exercising customs control

 

1. In accordance with point 2 of Article 337 of the Customs Code of the Union, the customs authorities shall have the right to make a request to banks for the purpose of receiving documents and information related to the external economic activities of persons subject to customs control, the existence of bank accounts and accounts, as well as monetary flows, necessary for the exercise of customs control.

2. The bank, upon receiving the request indicated in part 1 of this Article, shall provide the relevant documents and information to the customs authorities within 10 working days or inform the customs authorities within the same period about not having such documents and information.

3. The form of the request by customs authorities and the list of documents and information specified in part 1 of this Article shall be prescribed by the Government.

4. Provision of information constituting a bank secret shall be carried out as prescribed by the Law "On bank secrecy".

5. Provision of information containing other secret protected by law shall be carried out as prescribed by the relevant law.

 

Article 207.

Application of technical means during the exercise of customs control

 

1. During the exercise of customs control, technical means shall be applied in accordance with Article 342 of the Customs Code of the Union.

2. For the purpose of reducing the time limit required for customs control and increasing the efficiency of customs control, the list of technical means applied by the customs authorities and the procedure for use thereof shall be defined by the Committee.

 

Article 208.

Identification means and application thereof

 

1. Means of identification applied by customs authorities and the procedure for application thereof shall be prescribed by Article 341 of the Customs Code of the Union.

2. The Committee shall, in accordance with point 2 of Article 341 of the Customs Code of the Union, define the requirements for the identification means and the procedure for application thereof.

3. The Committee shall, in accordance with point 3 of Article 341 of the Customs Code of the Union, define the procedure for applying identification means used by the customs authorities.

 

Article 209.

The route of transportation and customs escort of goods

 

1. For the purpose of ensuring the exercise of customs control, the definition of the transportation route of goods shall be carried out by the customs authorities in accordance with Article 344 of the Customs Code of the Union, taking into account the peculiarities prescribed by this Article.

2. The Committee shall, in accordance with point 7 of Article 344 of the Customs Code of the Union, define the procedure for performing customs operations related to the definition, change and maintenance of the transportation route for goods transported through the territory of the Republic of Armenia and being under customs control without placing under the customs procedure "Customs transit".

3. Customs convoy shall be carried out in accordance with Article 343 of the Customs Code of the Union and this Law.

4. The Government may define the requirements for the organisations that may carry out customs convoy and the results of the convoy carried out whereby shall be accepted by the customs authorities.

 

Article 210.

Participation of the specialist in exercising customs control

 

1. For the purpose of ensuring the exercise of customs control, the involvement of specialists shall be carried out in accordance with Article 346 of the Customs Code of the Union.

2. In accordance with point 1 of Article 346 of the Customs Code of the Union, for the purpose of customs control exercised by the customs authorities, the involvement of specialists with special knowledge and skills in the given field shall be carried out based on the decision of the customs authority.

3. The form of the decision indicated in this part shall be defined by the Committee.

 

Article 211.

Involvement of specialists and experts from other state bodies in the exercise of customs control

 

1. For the purpose of ensuring the exercise of customs control, the involvement of other specialists and experts from other state bodies in the exercise of customs control shall be carried out in accordance with Article 347 of the Customs Code of the Union.

2. In accordance with point 1 of Article 347 of the Customs Code of the Union, involvement of specialists and experts from other state bodies for the purpose of exercising customs control by the customs authorities shall be carried out based on the decision of the customs authority.

3. The form of the decision indicated in this part shall be defined by the Committee.

 

SECTION 7

 

CUSTOMS AUTHORITIES

 

CHAPTER 41

 

CUSTOMS AUTHORITIES, FUNCTIONS AND LOCATIONS THEREOF

 

Article 212.

Customs authorities

 

1. Customs affairs in the Republic of Armenia shall be implemented by customs authorities that are law enforcement bodies.

2. The customs authorities shall be defined by the decision of the Prime Minister.

3. The customs authorities shall be established, re-organised and liquidated as prescribed by law.

4. The customs authorities shall be located in the places defined by the Government.

5. The Government may establish specialised customs authorities the competence whereof shall be limited by the powers for performance of specific functions placed on the customs authorities by the law of the Republic of Armenia or customs formalities of goods of certain types transported across the customs border, including goods transported by certain means of transport.

6. The Government may establish regional customs authorities that operate in the regions defined by the Government.

7. For increasing the efficiency of customs control, the Committee may define the requirements for customs infrastructure and technical equipment at locations of customs authorities, other places of exercising customs operations and customs control.

8. The customs authorities shall be deemed as bodies of currency supervision and, in accordance with the currency legislation of the Republic of Armenia, shall carry out supervision over transfer, by persons, of currency valuables across the border of the Republic of Armenia.

9. The functions and powers of customs authorities when exercising currency supervision provided for by this part shall be determined as prescribed by the Central Bank of the Republic of Armenia.

10. In case violations of the currency legislation of the Republic of Armenia are revealed by customs authorities upon currency supervision, persons having committed violations shall bear liability as prescribed by law.

(Article 212 amended by HO-113-N of 28 February 2024)

 

Article 213.

Customs laboratories, educational institutions and other organisations established for the purpose of implementation of customs affairs

 

1. For the purpose of implementing customs affairs and for expert examination and study of goods, the Government may establish customs laboratories, scientific and research institutions, data processing centres and other organisations.

2. The Government may establish specialised educational institutions for the purpose of carrying out scientific and research activities, preparing and training personnel in the field of customs affairs.

 

 

Article 214.

Principles of activities of customs authorities

 

1. When carrying out their activities, the customs authorities shall be guided by:

(1) the need for observing the lawfulness and equality of persons before the law, rights and freedoms thereof;

(2) the need for integrated management of customs affairs and ensuring professional capacities of officials of the customs authorities;

(3) the need for ensuring the clarity of requests made by customs authorities, access to the information on the customs legislation of the Republic of Armenia and the Union and the rules for carrying out foreign economic activity for the publicity of actions of the officials of the customs authorities, for exercise of customs control and implementation of customs formalities;

(4) the need for uniform application of provisions prescribed by the legislation when exercising customs control and implementing customs formalities;

(5) the need for improvement of customs affairs taking as a basis the introduction of customs administration methods through the use of up-to-date information technologies and generally recognised international standards in the field of customs affairs.

 

Article 215.

Obligations of customs authorities

 

1. The customs authorities shall be obliged to:

(1) ensure the exercise of customs control and implementation of customs formalities;

(2) support the development of foreign trade, foreign economic relations of the Republic of Armenia;

(3) maintain customs statistics on foreign trade, customs statistics on mutual trade and special customs statistics;

(4) ensure and supervise over the accuracy of calculation and timely payment of state duty collected for the customs duty, taxes, special, anti-dumping and compensation duties, performance of customs operations and other fees paid to the customs authorities;

(5) undertake measures for ensuring the payment of customs fees and other fees payable to the customs authorities as prescribed by the legislation;

(6) ensure the observance of the procedure defined by the legislation for transporting goods and means of transport across the customs border of the Republic of Armenia and the Union;

(7) ensure the observance of prohibitions and limitations prescribed by the customs legislation of the Union and the Republic of Armenia;

(8) ensure assistance for the protection of intellectual property rights of persons by customs authorities;

(9) disclose, prevent and repress the crimes and administrative offences the control over which is reserved to the competence of the customs authorities by the law of the Republic of Armenia, conduct confidential investigative actions and preliminary investigation in the form of inquest of criminal proceedings with regard to the mentioned crimes, conduct administrative proceedings with regard to cases on administrative offences in the field of customs affairs (violations of customs rules), assist in the fight against corruption and international terrorism, counteract the illicit traffic in objects of intellectual property, narcotic drugs, psychotropic substances, precursors thereof, arms and ammunition, cultural properties and other objects transported across the customs border of the Union or the state border of the Republic of Armenia;

(10) assist in the implementation of measures undertaken for ensuring the state security, maintenance of public order, protection of human life and health, preservation of animals and plants, protection of the environment, protection of interests of consumers of goods imported into the Republic of Armenia;

(11) exercise control over currency transactions with respect to transportation of goods across the customs border of the Union, as well as import of goods into the Republic of Armenia and export thereof from the Republic of Armenia, in conformity with international treaties of member states of the Union, currency legislation of the Republic of Armenia and regulatory legal acts adopted by currency regulation authorities in accordance therewith;

(12) protect, with the help of customs regulation measures, the interests of domestic goods producers, ensure the optimal use of resources of the customs authorities;

(13) ensure countermeasures against legalisation (laundering) of proceeds of crime and financing of terrorism when exercising control over transportation of currency, securities or currency assets, traveller's cheques of member states of the Union across the customs border of the Union in accordance with international treaties of members states of the Union;

(14) clarify the rights and obligations of persons in customs law relations, assist the participants of foreign economic activity in implementing customs formalities with regard to goods and means of transport carrying out international carriage;

(15) ensure the fulfilment of international obligations of the Republic of Armenia related to customs affairs, co-operate with customs and other competent authorities of foreign states, international organisations dealing with customs affairs;

(16) perform information and clarification functions in the field of customs affairs, provide information on issues related to customs affairs to state bodies, organisations and persons.

2. Other obligations may be reserved to customs authorities by laws of the Republic of Armenia.

3. The Government may, in accordance with point 3 of Article 351 of the Customs Code of the Union, define the procedure for delegating the functions of other state bodies exercising state control at the state border crossing points to the customs authorities.

4. The Government may, in accordance with points 4 and 5 of Article 351 of the Customs Code of the Union, define the procedure for delegating certain forms of customs control and certain means ensuring the exercise of customs control by customs authorities to other bodies of the state administration system exercising control at the state border crossing points.

(Article 215 amended by HO-386-N of 24 October 2024)

(Law HO-386-N of 24 October 2024 contains a transitional provision)

 

Article 216.

Powers of customs authorities

 

1. For the performance of functions reserved thereto, the customs authorities shall have the right to:

(1) undertake measures reserved to the customs authorities to ensure the compliance by the persons with the provisions provided for by the customs legislation and other legal acts of the Republic of Armenia and the Union;

(2) request documents, information in cases provided for by the customs legislation and other legal acts of the Republic of Armenia and the Union;

(3) check the identification documents of persons participating in the customs formalities;

(4) request from persons the documents certifying the powers to carry out actions in the field of customs affairs, prescribed by law;

(5) carry out operational-intelligence activity, perform confidential investigative actions, conduct inquest within the scope of their competence and to subject persons to administrative liability as prescribed by law;

(6) carry out audio- and video-recording, filming and photographing of temporary storage, loading of and other actions in relation to goods transported across the state border of the Republic of Armenia and under customs control;

(7) receive from state bodies, organisations and persons information necessary for the performance of the functions thereof, in accordance with the legislation of the Union and the Republic of Armenia;

(8) submit claims on the following to relevant state authorities in the cases and as prescribed by law:

a. levying customs duty, taxes, special, anti-dumping and compensation duties, state duty charged for the performance of customs operations, interests and penalties;

b. levying in execution on the property with a view to paying the customs duty, taxes, special, anti-dumping and compensation duties, state duty charged for the performance of customs operations, interests and fines;

c. declaring the goods as ownerless;

d. other issues prescribed by law or the customs legislation of the Union;

(9) develop, establish and operate information systems, communication systems and data exchange systems, technical means for customs control, as well as information security tools, including cryptographic tools, in accordance with the legislation of the Republic of Armenia;

(10) stop the means of transport subject to customs control and conduct inspection of the goods and means of transport, based on the objectives of conducting customs control;

(11) as performance of another function of border supervision or border control, perform functions of sanitary and hygienic, anti-epidemic, veterinary, phytosanitary control at state border crossing points;

(12) perform border supervision or other functions of border control not provided for by point 11 of this part in cases provided for by law;

(13) exercise other rights provided for by law for customs authorities.

2. The rights provided for by part 1 of this Article shall be enjoyed by the customs authority when performing functions exclusively in the field of customs affairs.

3. In accordance with point 5 of Article 359 of the Customs Code of the Union, the customs authorities may adopt preliminary decisions on the classification of goods, their country of origin, the method of determining the customs value.

4. When performing border control or other border control functions, the customs authorities shall be guided by the legislation regulating the field of the given function.

5. The customs authority shall perform border supervision or another function of border control if it is directly provided for by the law regulating the field of the function.

6. The customs authorities shall perform the function provided for by this Article on behalf of the customs authority.

7. Certain issues related to the performance of the function provided for by this Article shall be regulated by a decision of the Government.

(Article 216 amended by HO-386-N of 24 October 2024)

(Article HO-386-N of 24 October 2024 contains a transitional provision)

 

Article 217.

Distinguishing sign of the customs authorities

 

1. The customs authorities, means of transport thereof shall have a distinguishing sign, which shall be defined by the Government.

 

Article 218.

Locations and working hours of customs authorities

 

1. The customs authorities shall be located at state border crossing points of the Republic of Armenia. The locations of the customs authorities shall also be the places for customs formalities and places envisaged for the officials of the customs authorities, considered as structural sub-divisions of the customs authorities.

2. Upon the initiative of persons carrying out activities in the field of customs affairs, participants in foreign economic activity carrying out regular supply of goods, transportation and cargo transportation organisations and postal organisations of the Republic of Armenia, customs points and structural sub-divisions of customs houses may be located within the constructions belonging to the mentioned persons, if approved by a decision of the Government.

3. Customs formalities shall be fulfilled in the places determined therefor by the customs authority, at working hours of the customs authorities.

4. The working hours of customs authorities shall be defined by the Committee.

5. Upon the request of the declarant and at the latter's expense, the customs authority performing customs operations over the goods may, as prescribed by the Government of the Republic of Armenia, perform the customs operations elsewhere and beyond the working hours of the customs authority.

 

Article 219.

Officials of customs authorities, rights and obligations thereof

 

1. Officials of customs authorities shall be deemed to be persons who are citizens of the Republic of Armenia and employees of the customs authorities holding positions of customs service as prescribed by the law of the Republic of Armenia.

2. The rights, obligations and liability of the officials of the customs authorities shall be prescribed by the customs legislation of the Union, this Law and other laws of the Republic of Armenia.

3. The customs authorities and officials thereof shall adopt decisions, and carry out actions within the scope of their competence in accordance with the customs legislation of the Union and the legislation of the Republic of Armenia.

 

Article 220.

Mandatory compliance with requests of customs authorities and officials thereof

 

1. The lawful requests of the customs authorities and officials thereof shall be subject to mandatory compliance with by the persons carrying out activities related to the customs affairs.

2. The requests made by the customs authorities during the fulfilment of customs formalities and control or other customs procedures may not become a hindrance to the import, export, release of goods or conduct of other activities in the field of customs affairs, unless they are aimed at the exercise of the minimum control necessary for the compliance with the requirements prescribed by the legislation of the Union and the Republic of Armenia.

3. Failure to comply with the lawful requests of the customs authorities and officials thereof shall entail liability prescribed by law.

 

Article 221.

Co-operation of customs authorities with other state bodies

 

1. The bodies of the state administration system and officials of those bodies shall be obliged to assist within the scope of their competence in solving the problems faced by the customs authorities.

2. For the purpose of implementation of the customs affairs and exercise of other powers reserved thereto, the customs authorities shall co-operate with other persons. In case of import into the Republic of Armenia of goods or means of transport that are wanted, as well as with printed or deleted numbers of the engine or identification numbers or with other signs of unlawful taking and classified under headings 8702, 8703, 8704, 8705 of commodity nomenclature of foreign economic activity, the customs authorities shall be obliged to immediately inform the Police thereon.

3. In case the customs authorities detect facts attesting to a crime or administrative offences, the proceedings on the cases of which are vested in the competence of other bodies of the state administration system under law, shall be obliged to immediately provide information thereon to relevant bodies.

 

Article 222.

Departmental supervision over activities of customs authorities

 

1. Unless otherwise provided for by law, the customs authority or a superior official of the customs authority shall have the right to revoke or change at any time, through the departmental control procedure of the customs authority, the decision of other customs authority in the field of customs affairs or other official of the customs authority holding a lower official position which does not comply with the requirements of the legislation of the Union and the Republic of Armenia, as well as to undertake measures provided for by the customs legislation of the Union and the legislation of the Republic of Armenia on customs affairs against the unlawful actions (inaction) of the customs authority or official having taken the unlawful decision.

2. In case a new decision in the field of customs affairs is required to be adopted after the decision of the customs authority or the official is revoked (changed) through the departmental control procedure provided for by part 1 of this Article, such decision shall be adopted by the customs authority authorised by the Head of the Committee in accordance with the customs legislation of the Union and the legislation of the Republic of Armenia on customs affairs, within the time limits prescribed for exercising customs control.

 

 

Article 223.

Appealing decisions, actions or inaction of customs authorities and officials thereof

 

1. Decisions taken by the customs authorities and officials thereof, actions and inaction thereof shall be appealed in accordance with the customs legislation of the Union and the Law "On customs service".

 

CHAPTER 42

 

CUSTOMS STATISTICS

 

Article 224.

Customs statistics of foreign and mutual trade

 

1. For the purposes of keeping the statistics of foreign and mutual trade of the Republic of Armenia with the member states of the Union, as well as for analysing the state of the economy, the customs authorities shall, as defined by the Government of the Republic of Armenia, collect and process data on goods transported across the state border or statistical territory of the Republic of Armenia.

2. For the purpose of implementing the customs policy, the customs authorities shall keep the customs statistics according to the methodology defined by the Commission.

3. The Government shall, in accordance with point 3 of Article 360 of the Customs Code of the Union, define the procedure for keeping the statistics of foreign trade of goods.

4. The Government shall, in accordance with point 5 of Article 360 of the Customs Code of the Union, define the special procedure for keeping customs statistics, which shall be used only for customs purposes.

 

Article 225.

Documents and information used for statistical purposes

 

1. The information provided to the customs authorities as prescribed by the Government, as well as the documents and information used for the purpose of exercising customs control shall be used for keeping the customs statistics.

2. The customs authorities may not use the information collected for the purpose of customs statistics for other purposes, except for the cases provided for by law.

3. The customs authorities or officials thereof may not publish, and use information constituting a state, bank, insurance, commercial secret for personal purposes, provide it to third persons, including state bodies, except for the cases provided for by law.

4. The statistical information on the mutual trade between the Republic of Armenia and the member states of the defined, by the Government, shall be submitted to the customs authority through the procedure and within the time limits prescribed by the Government.

5. The rules of keeping the statistics of mutual trade between the Republic of Armenia and the member states of the Union, the statistical form for providing information on transported goods and the procedure for completion thereof shall be defined by the Government.

(Article 225 amended by HO-77-N of 1 March 2023)

 

CHAPTER 43

 

AWARENESS-RAISING AND CLARIFICATIONS

 

Article 226.

Awareness-raising on issues related to the customs legislation, customs affairs and competence of customs authorities. Official clarification

 

1. The customs authorities shall ensure the following:

(1) unimpeded, free-of-charge access to and publicity of the customs legislation of the Union and the customs legislation of the Republic of Armenia, including also through information technologies;

(2) the posting on the official websites thereof of information on legal acts related to the customs legislation of the Republic of Armenia and the customs legislation of the Union, as well as on drafts thereof, except for the cases when such publication may result in the reduction of effectiveness of the exercise of customs control or may hinder the exercise thereof.

2. The customs authorities shall provide awareness with regard to issues related to the customs legislation of the Union and the customs legislation of the Republic of Armenia.

3. Awareness-raising shall be carried out by customs authorities free of charge, orally or in writing. In case of a written request by a person, the customs authority shall be obliged to submit the information in writing.

4. The customs authority shall not bear liability for the outcomes of distortion of the legal acts published thereby or of the information provided in the form of awareness-raising or for legal acts published without the knowledge and control of the customs authority.

5. The customs authority may define the procedure and time limits for providing awareness-raising to persons.

 

Article 227.

Receiving information on a decision on persons adopted by the customs authority, reasons of actions (inaction) carried out thereby

 

1. Persons shall have the right to make an inquiry to the customs authority about the reasons for the decision adopted with regard to them by the customs authority or the official thereof or for the action (inaction) carried out thereby, where that decision, action or inaction relate to the rights and lawful interests of the mentioned persons.

2. The inquiry must be made within six months after the decision adopted or the action (inaction) carried out becomes known to the person.

3. The person may submit a request for receiving information both orally and in paper or electronically, as prescribed by law.

 

CHAPTER 44

 

INFORMATION SYSTEMS AND INFOMATION TECHNOLOGIES

 

Article 228.

Information systems, information technologies used by customs authorities and supporting tools thereof

 

1. The customs authorities shall apply the information systems and information technologies for the purpose of ensuring the performance of their functions, including the exchange of information with bodies of the state administration system, delivery of public services to the population and electronic submission of information and provision of services by persons carrying out foreign economic activity.

2. Information systems, information technologies and supporting tools thereof shall be established and introduced upon the initiative of the customs authorities, as prescribed by the legislation of the Republic of Armenia.

3. The procedure for applying the information systems in customs affairs shall be defined by the Committee.

4. The information systems, information technologies and supporting tools thereof, applied by third persons for the purpose of providing the documents and information provided for by this Law to the customs authorities electronically, must comply with the requirements prescribed by law.

 

Article 229.

Information resources of customs authorities

 

1. Information resources of customs authorities shall be a set of documented information and data including databases established, processed and collected in the customs authorities, including:

(1) in accordance with the customs legislation of the Union and the legislation of the Republic of Armenia, information submitted by persons during the performance of actions with the customs authorities;

(2) information provided by state bodies within the scope of inter-agency information exchange;

(3) information provided by state agencies of foreign state based on the inquires of the customs authorities or within the scope of international information exchange.

2. Procedure for creation and application of information resources of the customs authorities, requirements for documentation of the information and data, including those provided electronically, shall be defined by the Committee.

3. The procedure for receiving restricted information contained in the information resources of the customs authority by persons shall be prescribed by law.

4. (part repealed by HO-113-N of 28 February 2024)

(Article 229 amended by HO-113-N of 28 February 2024)

 

Article 230.

Ensuring protection of information by customs authorities

 

1. Creation of software, hardware and other tools for protection of information shall be implemented upon the initiative of the Committee as prescribed by law. Procedure for application of the software, hardware and other tools for protection of information shall be defined by the Committee.

2. Control over the compliance with the requirements for application of the tools for protection of information shall be carried out by the Committee.

CHAPTER 45

PROTECTION OF INTELLECTUAL PROPERTY RIGHTS BY CUSTOMS AUTHORITIES

 

 

Article 231.

Assistance of customs authorities in the protection of intellectual property rights

 

1. In accordance with Article 124 and Chapter 52 of the Customs Code of the Union, customs authorities shall carry out protection of the intellectual property right, taking into account the peculiarities prescribed by this Chapter.

2. Measures implemented by the customs authorities for the protection of the intellectual property right shall relate to goods that contain objects of intellectual property and are included, upon the application of the right holder, in the customs registers of objects of intellectual property.

3. The customs authorities shall exercise supervision over goods containing objects of intellectual property based on the substantiated application submitted to the customs authority by the right holder or the person authorised thereby. The following information shall also be submitted in parallel with the mentioned application:

(1) data on the right holder, including data which confirm the rights acquired by the right holder, and if submitted by the authorised person — also data on the authorised person;

(2) information on goods containing an object of intellectual property;

(3) information on the delivery leading to the violation of the rights of the right holder in his or her opinion;

(4) information on the time limit for exercising control over the object of intellectual property by the customs authorities.

The documents confirming the data completed in the application, as well as a statement of obligation to reimburse the material damage in case of causing such damage to the declarant, shall be attached to the application prescribed by this part.

4. The application prescribed by part 3 of this Article may be submitted electronically or in hard copy. The right holder or the person authorised thereby may submit, along with the application, samples of goods that are proof of the possible violation of the rights of the right holder.

5. The control over goods containing an object of intellectual property by the customs authorities shall be exercised for the period of time while goods containing an object of intellectual property are in the customs registry of goods, defined by the Customs Code of the Union or this Law.

 

Article 232.

Maintaining the register of goods containing an object of intellectual property

 

1. In accordance with point 1 of Article 385 of the Customs Code of the Union, the Commission shall maintain the unified customs register of objects of intellectual property.

2. The customs authority shall maintain the national customs register containing objects of intellectual property.

3. The types of objects of intellectual property to be included in the register specified in part 2 of this Article, the procedure for maintaining and publishing the register shall be defined by the Committee.

4. The Committee shall ensure the posting of the information contained in the registers referred to in parts 1 and 2 of this Article on its official website.

5. Within 10 working days after submitting the application referred to in part 3 of Article 231 of this Law, the customs authority shall examine the application and the documents submitted therewith and render a decision on registering it in the customs register of objects of intellectual property maintained by the customs authorities or rejecting its registration.

6. Within three working days after rendering the decisions referred to in part 5 of this Article, they shall be sent to the right holder or the person authorised thereby electronically or in hard copy, by also indicating the reasons for rejection in case of rejection.

7. In case the documents submitted by the right holder or the person authorised thereby are not sufficient to render a decision, the customs authority may request additional documents. In case the customs authority requests additional documents, the time limit for examination of the application referred to in part 3 of Article 231 of this Law shall be suspended until the submission of the documents by the right holder or the person authorised thereby.

8. For the purpose of checking the information submitted by the right holder or the person authorised thereby, the customs authority may send a request to other persons for the purpose of receiving relevant information, in case of which the time limit for examination of the application referred to in part 3 of Article 231 of this Law shall be suspended until the submission of that information.

9. In accordance with part 8 of this Article, in case of sending a request, the customs authority shall notify the right holder or the person authorised thereby of the suspension of the time limit for examination of the application upon the ground of the request.

10. The right holder or the person authorised thereby must, within one month after the day of receiving the decision provided for by part 5 of this Article on registering in the customs register of objects of intellectual property maintained by the customs authorities, submit to the customs authority a liability risk insurance for causing damage to persons in the amount of not less than EUR 10 000, at the expense of which the caused damage must be compensated.

11. Inclusion of goods containing objects of intellectual property in the customs register of objects of intellectual property maintained by the customs authorities shall be carried out within the time limit requested by the declarant, but no more than for a period of two years. The time limit for being in the customs register of goods containing objects of intellectual property may be extended by the time limit requested by the right holder, which may not exceed two years each time.

12. The application of right holder or the authorised person thereof shall be rejected, where they have failed to submit the documents prescribed by this Article, or where it is proved that the information presented therein are unreliable.

13. In case of change of data of goods included in the customs register of objects of intellectual property maintained by the customs authorities, the right holder or the person authorised thereby shall be obliged to submit, on the working day following the day of occurrence of such changes, an application to the customs authorities for the purpose of making relevant changes.

14. Changes may be made in the customs register of objects of intellectual property maintained by the customs authorities based on the application of the right holder or the person authorised thereby and the information submitted along with the application, as well as based on the information received from the bodies of the state administration system or law enforcement bodies. Such changes shall be made by the customs authorities within 10 working days following the day of receiving the information. The customs authority shall, before making the changes, conduct check of reliability of the information received, including through making a request, in case of which the time limit for check prescribed by this part shall be suspended until the day of receipt of the response to the request. In case of making a change in the customs register of objects of intellectual property maintained by the customs authorities based on the information received from the bodies of the state administration system or law enforcement bodies, the customs authorities shall, within five working days after making those changes, notify the right holder or the person authorised thereby electronically or in hard copy of the changes and the grounds for making those changes. In case of making changes in the customs register of objects of intellectual property maintained by the customs authorities based on the application of the right holder or the person authorised thereby or rejecting to make changes therein, the customs authority shall notify the right holder or the person authorised thereby electronically or in hard copy, by also indicating the grounds for rejection in case of rejection.

15. The grounds for removing goods containing objects of intellectual property from the relevant register maintained by the customs authorities shall be:

(1) application of the right holder or the person authorised thereby or the expiry of the time limit for control over goods containing an object of intellectual property, where the right holder or the person authorised thereby has not submitted an application on the extension of the time limit for control;

(2) termination of control over goods containing and object of intellectual property as prescribed by law;

(3) failure by the right holder or the person authorised thereby to submit the liability risk insurance provided for by this Article;

(4) disclosure of the fact of provision of unreliable information by the right holder or the person authorised thereby to the customs authorities;

(5) failure to submit information, in accordance with this Article, to the customs authorities on the changes to the information on the goods containing objects of intellectual property.

16. The forms of applications submitted by the right holder or the person authorised thereby, as well as the decisions rendered and the notifications sent by the customs authority, provided for by this Article, shall be defined by the Committee.

17. Where the suspension by the customs authorities of the release of goods containing objects of intellectual property based on the application of the right holder of the person authorised thereby leads to causing damage to the declarant of those goods, the right holder shall be obliged to reimburse that damage caused to the declarant, unless it has been proved that the declarant has violated the rights of the right holder with his or her actions.

 

Article 233.

Information provided by the customs authority

 

1. Without violating the requirements of the legislation on state, commercial and other secret protected by law, the customs authority shall be entitled to provide the right holder and the declarant with information necessary for resolving the issue of protection of the intellectual property right.

2. The right holder and the declarant may not transfer the information referred to in part 1 of this Article to a third person, except for the cases provided for by law, and it must be used exclusively for the purpose for which it has been provided.

3. Upon permission of the customs authority and in the presence of the official thereof, the right holder and the declarant shall have the right to take samples and test specimens from the goods the release whereof has been suspended, as well as submit them for expert examination.

(Article 233 amended by HO-77-N of 1 March 2023)

 

Article 234.

Not bearing liability by customs authorities

 

1. Regardless of the fact of receipt of an application pursuant to Article 231 of this Law, the customs authorities shall not bear liability for the following:

(1) failure to reveal goods violating intellectual property rights;

(2) rendering and execution of lawful decisions on suspending the release of the goods referred to in point 1 of part 1 of this Article;

(3) release of goods containing objects of intellectual property which are not registered in the register referred to in Article 232 of this Law and Article 385 of the Customs Code of the Union;

(4) release of goods in case of failure by the right holder to fulfil the obligations thereof in accordance with this Chapter and the Customs Code of the Union.

 

CHAPTER 46

 

TAKING GOODS AND DOCUMENTS INTO CUSTODY BY CUSTOMS AUTHORITIES

 

Article 235.

Peculiarities of taking goods and documents into custody by customs authorities

 

1. The grounds and procedure for taking goods and documents into custody by customs authorities shall be prescribed by Chapter 51 of the Customs Code of the Union.

2. The Government shall, in accordance with point 4 of Article 380 of the Customs Code of the Union, define the list of perishable goods for the purpose of applying Article 380 of the Customs Code of the Union.

3. When returning the goods seized by the customs authorities, the declarant or the person to whom the goods are being returned shall reimburse the costs of transfer (transportation), reloading (loading, unloading) and storage of the taken goods as prescribed by the Government.

4. In case the costs of transfer (transportation), reloading (loading, unloading) and storage or the costs of preparation for sale or sale of those goods exceed the value of those goods, the disposal of such goods shall be carried out in accordance with this Law and as prescribed by the Government.

5. Disposal of goods taken by the customs authorities, including the sale, use or destruction thereof, as well as the calculation of the costs of transfer (transportation), reloading (loading, unloading), storage and sale or preparation for sale of those goods shall be carried out as prescribed by this Law and the Government.

6. The costs of transfer (transportation), reloading (loading, unloading), storage and sale or preparation for sale of goods taken by the customs authorities and not claimed within the time limit specified by the Customs Code of the Union shall be reimbursed at the expense of the amounts generated from the sale thereof, as prescribed by the Government.

7. The Government shall, in accordance with point 2 of Article 383 of the Customs Code of the Union, define the procedure for sale of goods taken by the customs authorities and implementation of works aimed at the sale thereof, including the procedure for reimbursement the costs of loading, unloading, transportation, storage and other costs at the expense of the funds generated from the sale thereof.

8. The funds generated from the sale of goods taken by the customs authorities shall be returned to the declarant, as prescribed by the Government, after the reimbursement of the costs mentioned in Article 382 of the Customs Code of the Union and point 1 of Article 383 of the Customs Code of the Union, within the time limit prescribed by Article 383 of the Customs Code of the Union.

 

CHAPTER 47

 

CUSTOMS EXAMINATION ASSIGNED BY CUSTOMS AUTHORITIES

 

Article 236.

Customs examination assigned by customs authorities

 

1. The grounds and procedure for assigning a customs examination by customs authorities shall be prescribed by Chapter 53 of the Customs Code of the Union.

2. Within the meaning of Article 388 of the Customs Code of the Union, the authorised customs authority shall be the sub-division of the customs authority having the competence to conduct customs examination.

3. In accordance with point 2 of Article 389 of the Customs Code of the Union, in case of impossibility to carry out customs examination by the customs authorities or lack of relevant conditions and means, the customs examination assigned by the customs authority may be conducted by the organisations accredited by the customs authority, carrying out customs examination.

4. In the case provided for by part 3 of this Article, the customs authority shall assign the customs examination guided by the provisions prescribed by points 1-5 of Article 389 of the Customs Code of the Union.

5. The decision on assigning a customs examination shall be formulated by the official of the customs authority electronically or in hard copy. The form of the decision provided for by this part shall be defined by the Committee.

6. The Government shall, in accordance with point 10 of Article 389 of the Customs Code of the Union, provide for the cases and procedure for conducting an expert examination by the customs authorities other than the customs examination.

7. For exporting metal concentrate from the territory of the Republic of Armenia, an opinion on expert examination of the metal concentrate shall be submitted to the customs authority, the list of information submitted wherein shall be defined by the Committee.

8. The time limit for conducting customs examination, defined by point 1 of Article 390 of the Customs Code of the Union, may be extended upon a written decision substantiated by the head of the customs authority conducting customs examination, except for the cases provided for by this Law when the release of goods may not be carried out before the receipt of the results of the expert examination, in which case the expert examination shall be conducted within time limits not exceeding the time limit for releasing the goods.

9. In case of conducting customs examination in another organisation, the time limit for conducting the customs examination may be extended on the basis of the application of the declarant, upon the written decision of the head of the customs authority, except for the cases prescribed by this Law when the release shall not be carried out until the receipt of the findings of the expert examination, in which case the expert examination shall be conducted within time limits not exceeding the time limit for releasing the goods.

10. The head of the customs authority may extend the time limit for expert examination of two and more objects before the receipt of the findings of the expert examination, where the method of comparison and such science and technology means are applied to receive those findings the receipt of the findings of the expert examination through which requires a long time.

11. The time limit for conducting customs examination may be suspended for no more than 10 working days:

(1) in case of incompliance between the list submitted in the decision on assigning a customs examination and the goods submitted for expert examination;

(2) in case a need arises to receive additional materials or samples of the customs specialist for the purpose of conducting the customs examination;

(3) to receive a permit from the customs authority on destruction or damage of goods (where damage or destruction of goods may take place for the purpose of the expert examination) for the purpose of expert examination.

12. Conduct of customs examination may be rejected in the cases provided for by point 6 of Article 389 of the Customs Code of the Union, as well as in case of absence of a customs expert having the required qualification at the customs authority conducting the expert examination or another authorised organisation.

 

Article 237.

Conduct of customs examination

 

1. The Committee shall, based on the provisions provided for by Article 393 of the Customs Code of the Union, define the procedure for taking samples and test specimens from goods for the purpose of conducting customs examination.

2. The form of the customs examination opinion shall be defined by the Committee. All pages of the customs examination opinion shall be signed by the expert, and they shall be certified with the seal of the body conducting the customs examination.

3. The Committee shall, in accordance with point 10 of Article 393 of the Customs Code of the Union, define the form of the protocol on taking customs, transport (transportation), commercial and other documents and means of identification for customs examination.

4. In accordance with the Customs Code of the Union, the remuneration for the services of specialists and experts for the customs examination shall be made from the State Budget of the Republic of Armenia, as prescribed by the Government.

5. The procedure for conducting a customs examination by authorised customs authorities shall be defined by the Government.

 

Article 238.

Involvement of an expert of another authorised organisation in the process of conducting customs examination

 

1. Customs examination shall be assigned to experts of another authorised organisation only in the case when the conduct of such expert examination by customs experts is impossible.

2. The expert of another authorised organisation shall be involved in the process of conducting customs examination on contractual basis.

3. In case of assigning the conduct of customs examination to the expert of another organisation authorised by the customs authority, the expert must submit to the customs authority having assigned the expert examination documents confirming the required professional knowledge thereof.

4. Rights and responsibilities of the expert of another authorised organisation shall be prescribed by Chapter 53 of the Customs Code of the Union.

5. The procedure for involving an expert of another authorised organisation in the process of conducting customs examination shall be defined by the Committee.

 

CHAPTER 48

 

SMUGGLING, INQUEST AND OPERATIONAL - INTELLIGENCE ACTIVITY OF CUSTOMS AUTHORITIES

(Title amended by HO-386-N of 24 October 2024)

(HO-386-N of 24 October 2024 contains a transitional provision)

 

Article 239.

Smuggling

 

1. The illegal transfer of cash monetary funds or payment instruments in an amount exceeding the amount equivalent to USD 10 0000, raw good of strategic significance or cultural values included in the list approved by the Government – on a large-scale prescribed by law, as well as, irrespective of the size, narcotic drugs, psychotropic (psychoactive) substances and/or the preparation thereof, substances equivalent thereto (analogues) or precursors thereof or the substances, equipments or instruments used for production thereof and placed under special control or of a plant containing narcotic drugs, psychotropic (psychoactive) substances, potent or toxic substances, cultivation of which is prohibited, military product, equipment, explosives or explosive devices, firearm or component thereof, ammunition, radioactive substances or radioactive source, nuclear substance, drastic or toxic substance, weapons of mass destruction or device used for creation of missile systems for carriage thereof, nuclear, chemical, biological or other weapons of mass destruction or goods of dual significance across the customs border of the Union or the state border of the Republic of Armenia, which has been committed without customs control or by concealing therefrom, or by not declaring the reliable information thereon in the manner prescribed or by declaring not under the name thereof, or by violating the rules, including prohibitions and restrictions prescribed for transfer thereof or by using customs or other documents by deception shall be deemed as smuggling.

2. Smuggling, as a criminally punishable act, shall be provided for by the Criminal Code of the Republic of Armenia.

 

Article 240.

Customs authorities as inquest bodies (Title amended by HO-386-N of 24 October 2024)

 

1. The customs authorities shall be deemed to be inquest bodies under the cases vested in their competence under the Criminal Procedure Code of the Republic of Armenia.

(Article 240 amended by HO-386-N of 24 October 2024)

(HO-386-N of 24 October 2024 contains a transitional provision)

 

Article 241.

Conduct of inquest proceedings by customs authorities (Title amended by HO-386-N of 24 October 2024)

 

1. In cases of elements of smuggling and other crimes related to customs affairs, the inquest proceedings shall be conducted by the customs authorities.

2. (part repealed by HO-386-N of 24 October 2024)

(Article 241 amended by HO-386-N of 24 October 2024)

(Article HO-386-N of 24 October 2024 contains a transitional provision)

 

Article 242.

Operational-intelligence activities of customs authorities

 

1. Customs authorities shall carry out operational intelligence activities in accordance with the laws and other legal acts of the Republic of Armenia.

 

Article 243.

Controlled supply and purchase of narcotic drugs and psychotropic (psychoactive) substances or precursors thereof

 

1. For the purpose of suspending the international illegal circulation of narcotic drugs and psychotropic (psychoactive) substances or precursors thereof and revealing the persons involved therein, the customs authorities shall, for each individual case in accordance with the agreement with the customs authorities and other competent authorities of foreign states or on the basis of the international treaties of the Republic of Armenia, carry out the operational-intelligence measure "Controlled supply and purchase" as prescribed by the Law "On operational-intelligence activity". By applying the operational-intelligence measure "Controlled supply and purchase", the customs authorities shall permit the import — under their control — of narcotic drugs and psychotropic (psychoactive) substances or precursors thereof in illegal circulation, suspicious consignments of those goods, as well as other replaced substances indicated in part 4 of this Article into the Republic of Armenia, export from the Republic of Armenia or transit transportation thereof through the territory of the Republic of Armenia.

2. Within the meaning of application of this Article, the concept “suspicious consignment” shall mean those consignments of narcotic drugs, psychotropic (psychoactive) substances or precursors thereof, the transportation of which across the state border of the Republic of Armenia shall be carried out as prescribed by law, but there are suspicions about the legality of the further use of those substances.

3. In case of adopting a decision on carrying out the operational-intelligence measure "Controlled supply and purchase", criminal prosecution shall not be instituted with regard to the fact of carrying out international illegal circulation of narcotic drugs and psychotropic (psychoactive) substances or precursors thereof by a person, and the customs authorities shall immediately inform the Prosecutor General of the Republic of Armenia on the decision adopted.

4. The operational-intelligence measure "Controlled supply and purchase" may also be applied with respect to goods that have served as a means or an instrument for crime, have been obtained through a crime and shall be subject to destruction in the cases prescribed by law.

5. In case of applying the operational-intelligence measure "Controlled supply and purchase", the customs authority shall, in accordance with the agreement with the customs and other competent authorities of foreign states, have the competence to completely or partially replace narcotic drugs, psychotropic (psychoactive) substances or their precursors with other substances, by seizing the narcotic drugs, psychotropic (psychoactive) substances or their precursors replaced by other substances.

 

Article 244.

Disposal of confiscated property and monetary funds with the application of the operational-intelligence measure "Controlled supply and purchase"

 

1. Monetary funds confiscated by the courts of the Republic of Armenia and those of other states in proceedings on the crimes during the disclosure or prevention whereof the operational-intelligence measure "Controlled supply and purchase" was used, as well as generated from the sale of the confiscated property shall be distributed among the states the customs and other competent authorities whereof have participated in the operational-intelligence measure "Controlled supply and purchase" in accordance with the agreement effective between the competent state bodies of the Republic of Armenia and competent agencies of foreign states.

 

CHAPTER 49

 

GROUNDS AND PROCEDURE FOR DISPOSING OF GOODS TRANSFERRED TO THE STATE AND GOODS UNDER LIEN THAT ARE NOT OBJECTS OF ADMINISTRATIVE OFFENCES OR CRIMES

 

Article 245.

Transfer of goods to the state

 

1. Goods shall be transferred to the state:

(1) based on a judicial act in criminal proceedings or a case on an administrative offence, in case of applying confiscation of property by customs authorities;

(2) based on a judicial act rendered upon the ground of the claim of the customs authority or another authorised body on declaring the property ownerless or transferring seized goods to the State;

(3) in case of placing goods under the customs procedure "Abandoning in favour of the state".

2. In accordance with Article 16 of the Customs Code of the Union, in case of confiscation of goods by customs authorities for discharge of obligations with regard to customs duties, taxes, special anti-dumping and compensation duties based on a decision of the court, the mentioned goods shall acquire the status of Union goods, and the obligation to pay customs duties, taxes, special, anti-dumping and compensation duties therefor shall terminate.

3. The customs authorities shall make a relevant note on the court decision, as well as the termination of the obligation to pay customs duties, taxes, special, anti-dumping and compensation duties on the customs declaration or other customs documents submitted to the customs authority regarding the mentioned goods.

 

Article 246.

Goods subject to disposal and procedure for disposal

 

1. Goods transferred to the state in the cases prescribed by Article 245 of this Law shall be subject to disposal by customs authorities.

2. Goods placed under the customs procedure "Abandoning in favour of the state" shall be transferred to the state body authorised by the Government carrying out the process of sale, destruction or processing of the property transferred to the State, except for goods with regard whereto a special procedure for disposal is prescribed by law.

3. The following shall be deemed to be disposal actions:

(1) transfer and warehousing of goods in places specially adapted thereto;

(2) actions carried out for the purposes of sale of goods, including their division into separate consignments, packaging, re-packaging etc.;

(3) sale of goods.

4. Goods may be sold as prescribed by this Article through an auction procedure or direct sale, at a point of sale specially established upon an order of the head of the customs authority.

5. In case of direct sale of goods, their sale prices shall be determined by the customs authorities and co-ordinated with the declarant or the person having the rights to use, dispose of or possess the goods or the person authorised thereby. Moreover, the sale prices of goods may not be essentially lower than the current retail prices of such goods in the Republic of Armenia, taking into account the extent of their preservation.

6. Costs for storage of goods in points of sale, their preparation for sale and organisation of sale shall be incurred at the expense of 5 % of the amounts generated from the sale of the goods.

 

Article 247.

Gratuitous transfer by the customs authority of goods transferred to the state

 

1. The customs authority shall have the right to gratuitously transfer the goods transferred to state ownership to concerned state bodies and organisations, based on a decision of the Government. Goods transferred gratuitously in accordance with this part may not be used for commercial purposes.

2. For the purpose of gratuitous transfer of goods transferred to the state, the state bodies and organisation referred to in part 1 of this Article shall submit the written application (by indicating the date of adoption of the relevant decision of the Government and the number of the decision) to the customs authority, based on which the customs authority shall render a decision within five working days after receiving the application on the gratuitous transfer of the goods transferred to the state. Based on the decision provided for by this part, goods transferred to the state shall be transferred gratuitously by customs authorities to the state body or organisation provided for by the decision of the Government within 30 working days.

3. Gratuitous transfer of goods transferred to the state shall be formulated by a protocol signed by the heads of the customs authority and the state body or organisation gratuitously receiving the goods, wherein the goods being transferred gratuitously shall be described in detail.

 

Article 248.

Putting a lien on goods that are not objects of administrative offences or crimes and on documents thereon

 

1. The customs authority shall put a lien on goods that are not objects of administrative offences or crimes and on documents thereon upon the grounds provided for by point 1 of Article 379 of the Customs Code of the Union.

2. In case of putting a lien on goods that are not an object of administrative offences or crimes and on documents thereon, a protocol shall be drawn up in the form prescribed by the Commission.

3. The taken goods and documents on those goods shall be returned only in the cases prescribed by Article 381 of the Customs Code of the Union.

4. Relations pertaining to putting a lien, by customs authorities, on goods and documents shall be regulated by the legal acts provided for by this Article and the provisions of the procedure for taking goods deemed to be direct objects of violation of customs rules prescribed by the Administrative Offences Code of the Republic of Armenia, not contradicting the legal acts indicated in this Article.

 

SECTION 8

 

ACTIVITIES IN THE FIELD OF CUSTOMS AFFAIRS.

 

AUTHORISED ECONOMIC OPERATOR

 

CHAPTER 50

 

GENERAL PROVISIONS ON ACTIVITY IN THE FIELD OF CUSTOMS AFFAIRS

 

Article 249.

Inclusion of legal persons in the register of persons carrying out activities in the field of customs affairs

 

1. Inclusion of legal persons carrying out activity in the field of customs affairs in the register of legal persons carrying out activities in the field of customs affairs (hereinafter referred to as "the Register") shall be carried out in accordance with the provisions prescribed by Chapters 54-61 of the Customs Code of the Union and Chapters 50-57 of this Law.

2. For the purpose of inclusion in the Register, a legal person shall apply to the customs authority in paper form or electronically by attaching the documents provided for by Chapters 50-57 of this Law.

3. In order to be included in the registers of possessors of temporary storage warehouses, customs warehouses, possessors of free warehouses and possessors of duty-free shops, a legal person shall submit an application to the customs authority on the structures, constructions (parts of constructions) or open spaces in each new separated location or address used as a temporary storage warehouse, customs warehouse, free warehouse or duty-free shop trade hall.

4. Changes in the plans, designated purpose of buildings and constructions of temporary storage warehouses, customs warehouses, free warehouses and duty-free shops included in the Register shall be made upon the written permit or consent of the customs authority.

5. In the cases provided for by parts 2 and 3 of this Article, the originals of the documents or the signed carbon copies thereof may be submitted to the customs authorities, except for the documents confirming the security of payment of customs duties and taxes, in case of which the original of the document shall be submitted to the customs authorities. In case of submitting carbon copies, the customs authority may verify the compliance thereof with the originals, after which the originals shall be returned to the person having submitted them.

6. The customs authority shall examine the application submitted for inclusion in the Register within 30 working days after receiving it (except for the cases referred to in parts 7 and 14 of this Article), and shall render a decision on including the legal person in the Register or rejecting the inclusion thereof.

7. In case of failure to submit to the customs authority the documents confirming the security of discharge of obligations along with the application on inclusion in the Register, where the other conditions prescribed by law for inclusion in the Register have been observed, the customs authority shall render a preliminary decision on sufficiency of the conditions necessary for inclusion in the Register.

8. The customs authority shall, within two working days after adopting the preliminary decision on compliance with the conditions necessary for the inclusion in the Register, notify as prescribed by law the legal person having submitted the application of the preliminary decision, as well as of the necessity to submit the documents confirming the security of discharge of obligations.

9. The documents confirming the security of discharge of obligations shall be submitted to the customs authority within 10 working days after the notification.

10. The customs authority shall include the legal person having submitted the application in the Register within five working days following the day of receiving the documents confirming the security of discharge of obligations.

11. The security of discharge of obligations of persons carrying out activity in the field of customs affairs shall be carried out in any one or concurrently several methods of security of discharge of obligations with respect to customs duties, taxes, special, anti-dumping and compensation duties prescribed by law prescribed by point 1 of Article 63 of the Customs Code of the Union and prescribed by this Law in accordance with point 2 of Article 63 of the Customs Code of the Union.

12. The customs authorities shall conduct a visual inspection of the constructions and areas used as a temporary storage warehouse, customs warehouse, free warehouse or duty-free shop, and in case of a customs carrier — a visual inspection of means of transport for the purpose of checking their compliance with the requirements and conditions prescribed by this Law.

13. In case the documents submitted by the legal person fail to comply with the requirements prescribed by law, the customs authority shall have the right to request other documents confirming the data submitted by the legal persons, by indicating the grounds for that incompliance with the requirements prescribed by law.

14. In the cases provided for by part 13 of this Article, the examination of the application on inclusion in the Register shall be suspended until the legal person having submitted the application submits the documents requested by the customs authority. The legal person having submitted the application may submit the documents requested by the customs authority within 10 working days.

15. Inclusion of the legal person in the Register shall be approved through issuing a certificate on inclusion in the Register thereto.

16. The certificate on inclusion in the Register shall be signed by the head of the customs authority or the deputy thereof or the person authorised thereby and shall be verified with a seal.

17. The customs authority, upon examined the application of the legal person on inclusion in the Register, may render a decision on rejecting the application within a time limit not exceeding the time limit referred to in part 6 of this Article. The customs authority shall notify the head of the legal person or another authorised representative thereof of the decision on rejecting the inclusion in the Register within two working days after adopting the decision on rejection, by indicating the grounds for rejection.

18. The customs authority shall reject the application on inclusion in the Register, where:

(1) according to the documents submitted to the customs authorities, the legal person does not comply with the requirements prescribed by the Customs Code of the Union;

(2) the documents provided for by this Law have not been submitted;

(3) the data of the documents submitted along with the application by the legal person do not comply with the data submitted thereby;

(4) the data in the submitted information or documents are false or do not meet the requirements prescribed by law for the given type of activity in the field of customs affairs.

19. The forms of registers, forms of inclusion of legal persons in registers, their removal from registers, making amendments thereto, as well as the forms of certificates on inclusion in the registers of customs representatives, possessors of temporary storage warehouses, possessors of customs warehouses, possessors of free warehouses, possessors of duty-free shops, and the procedure for the completion thereof shall be defined by the Committee. The form of the document confirming the status of the customs carrier shall, in accordance with point 2 of Article 406 of the Customs Code of the Union, be defined by the Commission.

20. No fee shall be charged for examination of applications on inclusion of persons carrying out activities in the field of customs affairs in the registers and for their inclusion therein.

21. In accordance with point 12 of Article 399 of the Customs Code of the Union, where the security of discharge of obligations submitted by the person carrying out activity in the field of the customs affairs is carried out through submitting a guarantee issued by an insurance company, the re-calculation of foreign currency shall be made in accordance with the foreign currency exchange rate published by the Central Bank of the Republic of Armenia as of the day of submission of the relevant security.

22. The Government shall, in accordance with point 14 of Article 399 of the Customs Code of the Union, define the procedure for returning the securities of discharge of obligations of legal persons engaged in types of activities carried out in the field of customs affairs.

23. The securities of discharge of obligations related to the types of activities with respect to the customs duty, taxes, special, anti-dumping and compensation duties for carrying out activity in the field of customs affairs by legal persons shall be submitted in the amounts prescribed by the customs legislation of the Union and this Law, re-calculated in the currency of the Republic of Armenia.

24. In case of security of discharge of obligations of tax duty, taxes, special, anti-dumping and compensation duties by legal persons carrying out activity in the field of the customs affairs with the application of several of the methods prescribed by this Law, the order and procedure for the use thereof shall be defined by the Committee.

25. In accordance with the customs legislation of the Union and this Law, the security of discharge of obligations of customs duties, taxes, special, anti-dumping and compensation duties provided by legal persons carrying out activity in the field of customs affairs shall be returned to that legal person in case of observance of the conditions prescribed by this Law, as prescribed by the Government, in the following cases:

(1) rejecting the registration of the legal person in the register of persons engaged in a type of activity in the field of customs affairs;

(2) replacing one form of security of discharge of obligation s with another form by persons carrying out activity in the field of customs affairs;

(3) reducing the amount of security of discharge of obligations of persons carrying out activity in the field of customs affairs, prescribed by legislation;

(4) removing the person carrying out activity in the field of customs affairs from the Register;

(5) in cases prescribed by the Customs Code of the Union.

 

Article 250.

Change of data submitted along with the application on including in one of registers of persons carrying out activities in the field of customs affairs

 

1. In case of change of data submitted along with the application on including in the Register, provided for by this Law, the legal person (in case of restructuring of the legal person — the legal successor thereof) shall be obliged to notify the customs authority of these changes in hard copy or electronically within five working days from the day change of the data and submit documents confirming them.

2. The customs authority shall, within 15 working days after receiving the information referred to in part 1 of this Article, verify the compliance of the mentioned data with the conditions prescribed by law for including a legal person in the Register and shall make relevant changes in the Register. In case of change of data specified in the certificate on including persons in the Register (in the document confirming the status of a customs carrier), the customs authority shall issue a new certificate (a document confirming the status of a customs carrier) within one working day.

3. In accordance with this Article, the submitted documents shall be attached to the package of documents submitted by the legal person during the inclusion in the relevant Register.

 

Article 251.

Suspension and resumption of activities of a person carrying out activities in the field of customs affairs

 

1. Activities of legal persons included in the Register as customs representatives, customs carriers, possessors of temporary storage warehouses, possessors of customs warehouses, possessors of free warehouses and possessors of duty-free shops shall be suspended upon the decision of the customs authority:

(1) in case of submission by a legal person of an application on suspending the activities thereof —from the next day of submitting the application;

(2) in case of submission by a legal person of an application when instituting bankruptcy proceedings against the legal person —form the next day of submitting the application;

(3) in case a decision on suspending the activities of a legal person is adopted by the court or the authorised body —from the day the decision on suspension becomes known to the customs authorities;

(4) in case of suspension or termination of a document provided for by the legislation of the Republic of Armenia for engaging in the given activity, where the legislation of the Republic of Armenia provides for the existence of such document — from the day the fact of suspension or termination becomes known to the customs authorities;

(5) in case of failure to observe the requirements and conditions prescribed for including in the Register of the given type of activity or detecting a violation during control activities.

2. The decision of the customs authority on suspension of activities of legal persons included in the registers shall be forwarded to the head of the legal person or the authorised representative thereof within three working days.

3. From the day of termination of activities of a person carrying out activities in the field of customs affairs, the acceptance of goods for storage in temporary storage warehouses, customs and free warehouses, sale of goods in duty-free shops, as well as activities of customs representatives and customs carriers in that field shall not be permitted. In case the activities of the possessor of a temporary storage warehouse are suspended for more than one month, the goods in the temporary storage warehouse shall, within one month after the day following the suspension, be placed in another temporary storage warehouse at the expense of the funds of the possessor of the temporary storage warehouse.

4. Activities of customs representatives, customs carrier, possessors of temporary storage warehouses, possessors of customs warehouses, possessors of free warehouses and possessors of duty-free shops included in the Register shall resume from the day following the submission by the legal person of documents confirming the elimination of circumstances referred to in part 1 of this Article that have served as a basis for the suspension of those activities or from the day following the confirmation of elimination of circumstances having served as a basis for suspension of the activities as a result of visual inspection, whereabout the customs authority shall, within one working day, notify the head of the legal person or the authorised representative thereof.

5. Activities of customs representatives, customs carriers, possessors of temporary storage warehouses, possessors of customs warehouses, possessors of free warehouses and possessors of duty-free shops may be suspended for a period of up to one month upon the decision of the customs authority upon the ground provided for by point 5 of part 1 of this Article in order to eliminate the detected violations. The duration of the time limit provided for the elimination of the violations shall be determined by the customs authority based on the reasonable time period necessary for eliminating the detected violations. In case of failure to eliminate the detected violations within the prescribed time limit, the given type of activity shall be terminated, and the organisation shall be removed from the Register of the given type of activity.

6. In case of detecting violations having no significant impact on the effectiveness of the customs control, a reasonable time limit may be provided for the elimination thereof without suspension of the given type of activity. In case of failure to eliminate the violations having no significant impact on the customs control within the provided time limit, the given activity shall be suspended as prescribed by this Article.

 

Article 252.

Removing a legal person from the Register of persons carrying out activities in the field of customs affairs

 

1. A legal person shall be removed from the Register on the grounds provided for by Articles 403, 408, 413, 418, 423 and 428 of the Customs Code of the Union, as well as in case of violating the requirements set forth in paragraphs two and five of Articles 412, 417, 422 and 427 of the Customs Code of the Union, in case of failure to eliminate the violations within the time limit provided for eliminating them at the stage of suspension of activities. The restructuring of a legal person included in the Register shall not be a ground for removing the legal person from the Register.

2. The customs authority shall adopt the decision on removing the legal person from the Register in writing, with a reasoned justification, and shall notify the legal person on the day following the day of adoption thereof. The decision on removing the legal person from the Register shall be delivered to the authorised representative of the legal person in person or shall be sent to the legal person by post or electronically, by indicating the fact and the date of delivery.

3. The decision on removing the legal person from the Register shall enter into force from the day of adoption thereof and shall be executed from the day of notifying the legal person.

4. Irrespective of the provision prescribed by part 3 of this Article, possessors of temporary storage warehouses, possessors of customs warehouse and possessors of free warehouse may carry out activities based on the contracts concluded thereby before the day of removal from the Register within one month after receiving the notice provided for by this part, except for the cases when the ground for removal from the Register is the recording of violation of customs rules.

5. In case of termination of activity as a result of liquidation or reorganisation (except for the restructuring of a legal person), the customs authorities shall remove the legal person from the Register on the day following the day of receiving the information on liquidation or termination of activity, by making a note thereon.

6. The removal of a legal person from the Register shall not exempt it (the legal successor thereof) from the obligation of completing the formalities with respect to the carriage or storage of goods under the customs control or from the obligation of carrying out other actions based on the contracts concluded before the removal from the Register.

7. Goods placed under the customs procedure ''Duty-free trade'' shall be placed under another customs procedure within 15 working days from the day following the entry into force of the decision on removing the possessor of duty-free shop from the Register, except for the case when the goods are transferred or alienated from the hall of another duty-free shop to sell them.

8. In the case provided for by part 7 of this Article, when the goods are transferred from the duty-free shop to another duty-free shop under the control of the same customs authority, the control shall be conducted by the given customs authority. Transportation of the goods provided for by this Article to a duty-free shop under the control of another customs authority shall be carried out in accordance with the customs procedure ''Customs transit''.

9. From the day following the day of entry into force of the decision on removing the possessor of duty-free shop from the Register, goods placed under the customs procedure ''Duty-free trade'' shall be considered for customs purposes as goods placed under temporary storage. The sale of those goods from the hall of a duty-free shop removed from the Register, as well as placement of other goods in the given shop shall not be permitted.

10. In case of removal of a legal person from the Register, the return of the security of fulfilment of obligations provided by the person for inclusion in that Register (termination of the validity) shall be carried out in accordance with Chapter 10 of this Law.

 

Article 253.

Maintaining the Register of persons carrying out activities in the field of customs affairs

 

1. The Register shall be maintained by the customs authority electronically.

2. The forms of the Register and the procedure for maintaining it shall be approved by the Committee.

3. Registers shall be created by the customs authorities based on the decisions on including legal persons in those registers, making changes thereto and removing them, as well as the decisions on suspending and resuming the activities of customs representatives, possessors of temporary storage warehouses, possessors of customs warehouses, possessors of free warehouses and possessors of duty-free shops included in the registers. Changes in the registers shall be made within one working day after the adoption of the decision thereon by the customs authority.

4. Registers shall be published on the official website of the customs authorities, including on the 15th day of each month.

 

Article 254.

Record-registration of legal persons carrying out activities in the field of customs affairs and submission of reports

 

1. The record-registration of goods and economic transactions shall be carried out by the customs carrier, possessor of temporary storage warehouse, possessor of customs warehouse, possessor of free warehouse, possessor of duty-free shop in accordance with the legislation of the Republic of Armenia.

2. Persons carrying out activities in the field of customs affairs shall submit the reports in accordance with this Law.

 

CHAPTER 51

 

CUSTOMS REPRESENTATIVE

 

Article 255.

Customs representative

 

1. A customs representative shall be a legal person prescribed by Article 401 of the Customs Code of the Union, carrying out customs operations prescribed by the customs legislation of the Union upon assignment and on behalf of the declarant or the authorised person thereof or other interested persons.

2. Relations between a customs representative and a declarant or the authorised person thereof shall be regulated by contracts concluded between them.

3. A customs representative shall bear the obligation to pay the customs duty, taxes, special, anti-dumping and compensation duties and other fees subject to payment to the customs authorities envisaged during declaration under the relevant customs procedure, unless otherwise provided by the contract concluded between the customs representative and the declarant or the authorised person thereof.

 

Article 256.

Conditions for including a legal person in the register of customs representatives

 

1. Conditions for including a legal person in the register of customs representatives shall be prescribed by Article 402 of the Customs Code of the Union.

1.1 In accordance with sub-point 4 of point 1 of Article 402 of the Customs Code of the Union, the existence in the staff of the legal person of at least three persons qualified as specialists in customs formalities as defined by the customs authority shall be a condition for including a legal person in the register of customs representatives.

2. The size of the amount of the risk insurance of liability provided for by sub-point 1 of point 1 of Article 402 of the Customs Code of the Union shall be determined by contracts concluded between the customs representative and insurance companies.

3. State administration institutions, communities, state non-commercial organisations, community non-commercial organisations, as well as other legal persons established with state participation may not be included in the register of customs representatives.

4. The certificate of inclusion in the register of customs representatives shall contain the name, location, taxpayer identification number of the customs representative, name of the customs authority issuing the certificate, date of issue of the certificate and the number thereof.

5. Customs representatives carrying out only export transactions shall be exempted from submitting the security of fulfilment of obligations.

(Article 256 supplemented by HO-113-N of 28 February 2024)

 

Article 257.

Application for inclusion in the register of customs representatives

 

1. The following shall be indicated in the application submitted for the purpose of inclusion in the register of customs representatives:

(1) information on the name, location of the customs representative (electronic mail and/or other contact information);

(2) information on the existence of at least three persons in the staff of the legal person having received the qualification of a specialist in customs formalities as defined by the customs authority as of the day of submitting the application;

(3) information on submission of a document confirming the security of fulfilment of obligations in accordance with sub-point 2 of point 1 of Article 402 of the Customs Code of the Union, except for the case prescribed by part 5 of Article 256 of this Law;

(4) information on the contract (contracts) on risk insurance of liability provided for by this Law.

2. Originals of documents confirming the information under part 1 of this Article or the signed carbon copies thereof shall be attached to the application submitted for inclusion in the register of customs representatives, which shall be returned after examination. The original of the document confirming the security of fulfilment of obligations provided for by the Customs Code of the Union shall be submitted to the customs authorities.

 

Article 258.

Specialist in customs formalities

 

1. Only a citizen of the Republic of Armenia in employment or civil law contract relations with the customs representative or authorised thereby and having obtained the qualification of a specialist in customs formalities as defined by the Committee may carry out customs formalities on behalf of the customs representative.

2. Mandatory conditions for obtained a qualification certificate of a specialist in customs formalities shall be:

(1) higher education;

(2) command of Armenian;

(3) proficiency in customs legislation;

(4) knowledge of using the electronic customs declaration system.

3. The procedure for and conditions of qualification of a specialist in customs formalities shall be defined by the Committee. Examinations for qualification in customs formalities shall be administered by a commission established by the customs authority. Persons having passed the examination for qualification in customs formalities shall be issued a qualification certificate in customs formalities within the time limit prescribed by the Committee, as well as a possibility to access the automatic customs declaration system.

4. A persons having obtained a certificate of qualification in customs formalities shall lose that certificate, where he or she fails to score the necessary number of points to maintain the qualification during each year following the year of obtaining the certificate:

(1) by participating in the training courses organised by the customs authority and passing their final examinations;

(2) by submitting declarations of the quantity of goods defined by the Committee, having served as a basis for releasing the goods, the quantity of declarations of goods in relation whereto a measure of liability has been imposed on that qualified person for the recorded customs offences in the total quantity thereof does not exceed the percentage threshold defined by the Committee.

5. The procedure for and frequency of holding the training courses and final examinations thereof referred to in part 4 of this Article, the number of annual points necessary to maintain the qualification of a specialist in customs formalities and the procedure for record-registration, as well as the procedure for and conditions of allocating points shall be defined by the Committee.

 

Article 259.

Grounds and procedure for termination of the qualification certificate of a specialist in customs formalities

 

1. The qualification certificate of the specialist in customs formalities shall be terminated, where:

(1) the fact the specialist in customs formalities has received a qualification certificate by means of using false documents is confirmed;

(2) a judicial act on depriving of the right to engage in activities of a specialist in customs formalities enters into force;

(3) the requirements prescribed by Article 263 of this Law have been violated;

(4) the person having obtained the certificate has lost the qualification of a specialist in customs formalities in accordance with part 4 of Article 258 of this Law;

(5) the specialist in customs formalities has been convicted for smuggling, fraud or defalcation and the conviction has not been expired or cancelled as prescribed.

2. The decision on termination of the qualification certificate of a specialist in customs formalities shall be adopted by the relevant official of the customs authority. A carbon copy of the mentioned decision shall be provided, in hard copy or electronically, to the person with regard whereof this decision has been rendered within three working days after its adoption.

3. The decision on termination of the qualification certificate of a specialist in customs formalities may be appealed by way of superiority or to the court.

4. In case the qualification certificate of a specialist in customs formalities has been terminated upon the ground provided for by points 1 and 3 of part 1 of this Article, a person may participate in the examination for qualification in customs formalities as prescribed by the Committee not earlier than six months from the day of rendering the decision on termination of the qualification certificate.

 

Article 260.

Accessibility of information systems of customs authorities for customs representatives

 

(Article repealed by HO-113-N of 28 February 2024)

 

Article 261.

Grounds for removing a customs representative from the register of customs representatives

 

1. Grounds for removing a customs representative from the register of customs representatives shall be prescribed by Article 403 of the Customs Code of the Union.

1.1 A customs representative shall be removed from the register of customs representatives in case of failure to comply with the condition prescribed by part 1.1 of Article 256 of this Law.

2. The customs representative shall not be removed from the register of customs representatives upon the ground prescribed by sub-point 5 of point 1 of Article 403 of the Customs Code of the Union in the cases when the reorganisation has taken place in the manner prescribed by point 1 or point 5 of Article 64 of the Civil Code of the Republic of Armenia and has not led to the absence of the conditions having been met for the registration of the established legal person as a customs representative.

(Article 261 supplemented by HO-113-N of 28 February 2024)

 

Article 262.

Rights and obligations of a customs representative

 

1. The rights of customs representatives shall be prescribed by Article 404 of the Customs Code of the Union.

2. In accordance with point 3 of Article 404 of the Customs Code of the Union, the customs representative may limit the activities carried out thereby for the purposes of performing customs operations, certain customs operations or customs operations in separate regions with regard to certain categories of goods.

3. The obligations of customs representatives shall be prescribed by Article 405 of the Customs Code of the Union.

4. In accordance with point 6 of Article 405 of the Customs Code of the Union, the request of the customs authority for the fulfilment of obligations by the customs representative with respect to the customs duty, taxes, special, anti-dumping and compensation duties shall not be set, or the request having already been set shall be deemed to be suspended in case of existence of a civil judgment having entered into legal force, according to which the customs representative must not bear the obligation to pay such fees.

5. Customs representatives shall be obliged to ensure the publicity of information about the tariffs set for the services provided thereby, as defined by the Committee.

(Article 262 supplemented by HO-113-N of 28 February 2024)

 

Article 263.

Use of information received from the delegator by a customs representative and the personnel thereof

 

1. The customs representative and employees thereof may use the information received from the delegator in order to fulfil the assignment exclusively for customs purposes.

2. Information containing state, bank, commercial or other secrets shall not be subject to disclosure and may not be used by the customs representative or the employees thereof for their own benefit or for the benefit of third persons, provided to third persons, including state bodies, except for the cases provided for by law.

(Article 263 amended by HO-77-N of 1 March 2023)

 

CHAPTER 52

 

CUSTOMS CARRIER

 

Article 264.

Customs carrier

 

1. Customs carrier shall be a legal person defined by Article 406 of the Customs Code of the Union.

2. The conditions for inclusion of a legal person in the register of customs carriers shall be prescribed by Article 407 of the Customs Code of the Union.

3. The status of a customs carriers shall be certified by a document issued by the customs authority, the form and the procedure for use whereof shall be defined by the Commission.

4. Relations between a customs carrier and deliverers of goods shall be regulated by contracts concluded between them.

5. The obligations of a customs carrier shall be prescribed by Article 409 of the Customs Code of the Union.

 

Article 265.

Application for inclusion in the register of customs carriers

 

1. The application for inclusion in the register of customs carriers shall indicate the following:

(1) information on the name, location and place of business of customs carriers (mail address or other contact information);

(2) information on the right of ownership, lease or use of means of transport having the capacity of being used for customs securities envisaged for international carriage;

(3) information on submission of the document confirming the security of fulfilment of obligations in accordance with sub-point 2 of point 1 of Article 407 of the Customs Code of the Union.

2. The original of documents confirming the information referred to in part 1 of this Article shall be attached to the application for inclusion in the register of customs carriers, which shall be returned after examination. The list of means of transport envisaged for customs carriage owned by the customs carrier or leased or transferred for use thereby and the carbon copies of technical passports thereof shall be submitted along with the documents provided for by this part.

 

Article 266.

Grounds for removing a customs carrier from the register of customs carriers

 

1. Grounds for removing a customs carrier from the register of customs carriers shall be prescribed by Article 408 of the Customs Code of the Union.

2. The customs carrier shall not be removed from the register of customs carriers upon the ground prescribed by sub-point 4 of point 1 of Article 408 of the Customs Code of the Union in the cases where the reorganisation has taken place in the manner prescribed by point 1 or point 5 of Article 64 of the Civil Code of the Republic of Armenia and has not led to the absence of conditions having been met for the registration of the established legal person as a customs carrier.

3. In accordance with point 2 of Article 408 of the Customs Code of the Union, other additional grounds for removing a legal person from the register of customs carriers in addition to the grounds prescribed by point 1 of Article 408 of the Customs Code of the Union may be prescribed by law.

 

Article 267.

Use of information received from the delegator by a customs carrier and the personnel thereof

 

1. The customs carrier and the employees thereof may use the information received from the delegator in order to fulfil the assignment exclusively for customs purposes.

2. Information containing state, bank, commercial or other secrets shall not be subject to disclosure and may not be used by the customs carrier or the employees thereof for their own benefit or for the benefit of third persons, provided to third persons, including state bodies, except for the cases provided for by law.

(Article 267 amended by HO-77-N of 1 March 2023)

 

CHAPTER 53

 

POSSESSOR OF TEMPORARY STORAGE WAREHOUSE

 

Article 268.

Possessor of a temporary storage warehouse

 

1. Possessor of a temporary storage warehouse shall be a legal person defined by Article 410 of the Customs Code of the Union.

2. A temporary storage warehouse may, according to the type of operation, be of open or closed type. Open temporary storage warehouses shall be designed for the use by every person. Closed temporary storage warehouses shall be designed for the storage of goods imported by the possessor of the given warehouse or organisations included in it or for the storage of certain types of goods, including such goods the circulation whereof is limited by the legislation of the Republic of Armenia and the Union, or which have special storage conditions.

3. Relations between persons transferring goods for storage and a possessor of temporary storage warehouses shall be regulated by contracts concluded between them.

4. The obligations of the possessor of temporary storage warehouses shall be prescribed by Article 414 of the Customs Code of the Union.

 

Article 269.

Conditions for including a legal person in the register of possessors of temporary storage warehouses

 

1. Conditions for including a legal person in the register of possessors of temporary storage warehouses shall be prescribed by Article 412 of the Customs Code of the Union.

2. The certificate on inclusion in the register of possessors of temporary storage warehouses shall contain the following:

(1) name of the possessor of temporary storage warehouses, information on legal and business addresses, taxpayer identification number thereof;

(2) type of the temporary storage warehouse;

(3) information on the location of the construction or open space of the temporary storage warehouse;

(4) name of the customs authority issuing the certificate;

(5) date of issue of the certificate and the number thereof.

 

Article 270.

Requirements for temporary storage warehouses

 

1. Constructions of temporary storage warehouses or open spaces must be equipped in such a way as to ensure the storage of goods in the territory of temporary storage warehouses and spaces, exclude the entry of unauthorised persons (including employees of the warehouse who do not have sufficient authority), carry out other activities, as well as to ensure only the activities of storage of goods under customs control.

2. The following requirements shall be set for temporary storage warehouses:

(1) to ensure compliance with proper sanitary and hygienic conditions necessary for the storage of goods in temporary storage warehouses, building protection, security alarm and fire safety requirements for the protection of constructions, as well as safety requirements for operating constructions for the designated purpose;

(2) to ensure availability of a security service (own or leased) for the protection of the territory of temporary storage warehouses;

(3) to ensure separation, enclosing or fencing of buildings and spaces designed for temporary storage warehouses, as well as construction of temporary storage warehouses in such a way as to carry out only the activity of storage of goods under customs control within the territory of the temporary storage warehouses and spaces, to exclude implementation of other activities, the possibility of receiving goods and their release from temporary storage warehouses out of customs control, damage of goods stored in temporary storage warehouses;

(4) to ensure availability of logistics equipment for the storage of goods in quantities defined by the Committee, including the availability of equipment necessary for loading and unloading and means of transport, storage facilities (weighing, placing, transporting), communication and other means;

(5) to ensure availability of the conditions envisaged for the customs authorities for the purpose of carrying out customs formalities and control, in the minimum sufficient quantities defined by the Committee;

(6) to ensure availability of constructions or equipment specifically separated and customised for goods requiring special storage conditions (perishable and fragile, requiring a certain regime of humidity and/or temperature, flammable, hazardous for the environment);

(7) to ensure availability of automatic systems of record-registration of goods and submitting reports to customs authorities;

(8) to ensure availability of control checkpoints for open temporary storage warehouses;

(9) to ensure availability of a solid covering (asphalt, concrete or other similar covering) of the open premises of temporary storage warehouses and the surfaces of spaces.

3. Compliance with the requirements provided for by point 1 of part 2 of this Article shall be certified by submitting the written document issued by the authorised bodies of the Government to the customs authorities at the intervals prescribed by the decision of the Government, and the obligation to receive the document referred to in this part and submit it to the customs authorities shall be borne by the possessor of the temporary storage warehouse.

4. Other requirements for the location, equipment, surfaces of constructions, premises (parts of premises) or open spaces used or designed for use as temporary storage warehouses, as well as the procedure for their establishment and operation shall be defined by the Government.

(Article 270 supplemented by HO-387-N of 11 December 2023)

 

Article 271.

Application for inclusion in the register of operators of temporary storage warehouses

 

1. The application for inclusion in the register of operators of temporary storage warehouses shall contain the following:

(1) information on the name, legal and business addresses of possessors of temporary storage warehouses;

(2) information on constructions or open spaces under the possession of the possessors of temporary storage warehouses and designed for use as a temporary storage warehouse, their location, sizes of the occupied common and closed spaces, provision with facilities, equipment and logistics support;

(3) information on the contract (contracts) on risk insurance of civil liability.

2. Originals or signed carbon copies of the documents confirming the provided information and the opinions issued by relevant state authorised bodies shall be attached to the application for inclusion in the register of operators of temporary storage warehouses, which shall be returned to the possessor of the temporary storage warehouse after examination.

3. The size of the amount of the risk insurance of liability submitted by possessors of temporary storage warehouses shall be determined by the contract concluded between a temporary storage warehouse and an insurance organisation.

 

Article 272.

Grounds for removing a possessor of a temporary storage warehouse from the register of possessors of temporary storage warehouse

 

1. Grounds for removing a possessor of a temporary storage warehouse from the register of possessors of temporary storage warehouse shall be prescribed by Article 413 of the Customs Code of the Union.

2. A possessor of a temporary storage warehouse shall not be removed from the register of possessors of temporary storage warehouses on the grounds prescribed by sub-point 4 of point 1 of Article 413 of the Customs Code of the Union in the cases when the reorganisation has taken place in the manner prescribed by point 1 or point 5 Article 64 of the Civil Code of the Republic of Armenia and has not led to the lack of conditions ensured for the registration of the established legal person as a possessor of a temporary storage warehouse.

3. In accordance with point 2 of Article 413 of the Customs Code of the Union, other additional grounds for removing a legal person from the register of the possessors of a temporary storage warehouse in addition to the grounds prescribed by point 1 of Article 413 of the Customs Code of the Union shall be prescribed by law.

 

CHAPTER 54

 

POSSESSOR OF A CUSTOMS WAREHOUSE

 

Article 273.

Possessor of a customs warehouse

 

1. Possessor of a customs warehouse shall be the legal person prescribed by Article 415 of the Customs Code of the Union.

2. The types of customs warehouses shall be defined by the Customs Code of the Union.

3. Relations between possessors of a customs warehouse and declarants or other persons shall be regulated by contracts concluded between them.

4. The possessor of a customs warehouse shall fulfil the obligations provided for by Article 419 of the Customs Code of the Union.

 

Article 274.

Conditions for including a legal person in the register of possessors of customs warehouses

 

1. Conditions for including a legal person in the register of possessors of customs warehouses shall be prescribed by Article 417 of the Customs Code of the Union.

2. The certificate on inclusion in the register of possessors of customs warehouses shall contain the following:

(1) name, location, taxpayer identification number of the possessor of customs warehouse;

(2) type of the customs warehouse;

(3) location of constructions or open spaces of the customs warehouse;

(4) name of the customs authority issuing the certificate;

(5) date of issue of the certificate and the number thereof.

 

Article 275.

Application for inclusion in the register of possessors of customs warehouses

 

1. The application for inclusion in the register of possessors of customs warehouses shall contain the following:

(1) name of possessors of customs warehouses, information on legal and business addresses;

(2) information on the type of the customs warehouse (in case of an open warehouse — also grounds for the necessity and appropriateness of selecting that type of warehouse);

(3) information on constructions or open spaces under the possession of the possessors of customs warehouses and designed for use as a customs warehouse, sizes of the occupied common and closed spaces, their location, provision with facilities, equipment and logistics support;

(4) information on the contract (contracts) on risk insurance of civil liability of possessors of open customs warehouses.

2. Originals of documents confirming the information provided for by part 1 of this Article and Article 417 of the Customs Code of the Union and of the opinions issued by relevant state authorised bodies or the signed carbon copies thereof shall be attached to the application submitted for inclusion in the register of the possessors of customs warehouses, which shall be returned after examination.

3. The size of the amount of risk insurance of liability of the possessors of customs warehouses shall be determined by the contract concluded between a possessor of the customs warehouse and an insurance organisation.

 

Article 276.

Requirements for customs warehouses

 

1. The constructions, premises (parts of premises) of customs warehouses or open spaces shall be equipped in such a way as to ensure the preservation of products in the territory of customs warehouses and spaces, to exclude the entry of unauthorised persons (including employees of the warehouse who do not have sufficient authority), other activities, as well as to ensure only the activities of keeping goods under customs control, the possibility of customs control over the goods.

2. The following requirements shall be set for customs warehouses:

(1) to ensure compliance with proper sanitary and hygienic conditions necessary for the storage of goods in customs warehouses, building protection, security alarm and fire safety rules for the protection of constructions, as well as safety requirements for operating constructions for the designated purpose;

(2) to ensure availability of security service (own or leased) for fulfilling protection of the territory of customs warehouses;

(3) to ensure separation, enclosing or fencing of buildings and spaces designed for customs warehouses, as well as construction of customs warehouses in such a way as to carry out only the activity of storage of goods under customs control within the territory of the customs warehouses and spaces, to exclude implementation of other activities, possibility of receiving goods and their release from temporary storage warehouses out of customs control, damage of goods stored in customs warehouses;

(4) to ensure availability of logistics equipment for the storage of goods defined by the Committee, including the availability of equipment necessary for loading and unloading and means of transport, storage facilities (weighing, placing, transporting), communication and other means;

(5) to ensure the availability of the conditions envisaged for the customs authorities for the purpose of carrying out customs formalities and control, in the minimum sufficient quantities defined by the Committee;

(6) to ensure availability of constructions or equipment specifically separated and customised for goods requiring special storage conditions (perishable and fragile, requiring a certain regime of humidity and temperature, flammable, hazardous for environment);

(7) to ensure availability of automatic systems of record-registration of goods and submitting reports to customs authorities;

(8) to ensure availability of control checkpoints for open customs warehouses;

(9) to ensure availability of a solid covering (asphalt, concrete or other similar covering) of the open premises of customs warehouses and the surfaces of spaces;

(10) in accordance with point 7 of part 1 of Article 71 of this Law, in case of being a place of temporary storage, the same conditions shall be set for the organisation of the customs warehouse, which are provided for the organisation of the temporary storage warehouse.

3. Compliance with the requirements provided for by point 1 of part 2 of this Article shall be certified by submitting the written document issued by the authorised bodies of the Government to the customs authorities at the intervals prescribed by the decision of the Government, and the obligation to obtain the document referred to in this part and submit it to the customs authorities shall be borne by the possessor of the customs warehouse.

4. The Government may define other requirements for the location, equipment, surfaces of premises (parts of premises) or open spaces used or intended for use as customs warehouses.

5. The procedure for establishment and operation of customs warehouses shall be defined by the Government.

 

Article 277.

Grounds for removing a possessor of a customs warehouse from the register of possessors of customs warehouses

 

1. Grounds for removing a possessor of a customs warehouse from the register of possessors of customs warehouses shall be prescribed by Article 418 of the Customs Code of the Union.

2. The possessor of the customs warehouse shall not be removed from the register of possessors of a customs warehouse on the ground prescribed by sub-point 4 of point 1 of Article 418 of the Customs Code of the Union in cases when the re-organisation has taken place in the manner prescribed by point 1 or point 5 of Article 64 of the Civil Code of the Republic of Armenia and has not led to the lack of conditions ensured for registration of the established legal person as a possessor of a customs warehouse.

3. In accordance with point 2 of Article 418 of the Customs Code of the Union, other additional grounds for removing a legal person from the register of possessors of customs warehouse in addition to the grounds prescribed by point 1 of Article 418 of the Customs Code of the Union shall be prescribed by law.

 

CHAPTER 55

 

POSSESSOR OF A FREE WAREHOUSE

 

Article 278.

Possessor of a free warehouse

 

1. Possessor of a free warehouse shall be the legal person carrying out activities in accordance with Article 420 of the Customs Code of the Union.

2. In accordance with point 2 of Article 420 of the Customs Code of the Union, entrepreneurial activities may be carried out within the territory of the free warehouse.

3. The Government may, in accordance with point 3 of Article 420 of the Customs Code of the Union, define the types of activities the performance of which shall be prohibited in free warehouses.

4. Obligations of the possessor of a free warehouse shall be prescribed by Article 424 of the Customs Code of the Union.

 

Article 279.

Conditions for including a legal person in the register of possessors of free warehouses

 

1. Conditions for including a legal person in the register of possessors of free warehouses shall be prescribed by Article 422 of the Customs Code of the Union.

2. In accordance with Article 422 of the Customs Code of the Union, the requirements for the system for record-registration of goods, which shall be a condition for including a legal person in the register of possessors of free warehouses, shall be defined by the Committee.

3. The certificate on inclusion in the register of possessors of free warehouses shall include the following:

(1) name, location, taxpayer identification number of the possessor of free warehouse;

(3) location of constructions or open spaces of the free warehouse;

(3) name of the customs authority issuing the certificate;

(4) date of issue of the certificate and the number thereof.

 

Article 280.

Application for inclusion in the register of possessors of free warehouses

 

1. The application for inclusion in the register of possessors of free warehouses shall contain the following:

(1) information on the name, legal and business addresses of possessors of free warehouses;

(2) information on constructions, premises or open spaces under the possession of possessors of free warehouses and designed for use as a free warehouse, legal and business addresses thereof, sizes of the occupied common and closed spaces, provision with facilities, equipment and logistics support.

2. Originals of documents confirming the information provided for by part 1 of this Article and of opinions issued by relevant state authorised bodies or the signed carbon copies thereof shall be attached to the application submitted for inclusion in the register of the possessors of free warehouses, which shall be returned after examination.

 

Article 281.

Requirements for free warehouses

 

1. The constructions, premises (parts of premises) of free warehouses or open spaces shall be equipped in such a way as to ensure the preservation of goods in the territory of free warehouses and spaces, to exclude the entry of unauthorised persons (including employees of the warehouse who do not have sufficient authority), other activities, as well as to ensure only the activities of keeping goods under customs control in the territory of free warehouses and spaces, the possibility of customs control over the goods.

2. The following requirements shall be set for free warehouses:

(1) to observe proper sanitary and hygienic conditions for the storage of goods in free warehouses, security alarm and fire safety requirements for the protection of constructions;

(2) to ensure availability of a security service (own or leased) for fulfilling protection of the territory of free warehouses;

(3) to ensure separation, enclosing or fencing of buildings and spaces designed for free warehouses, as well as construction of free warehouses in such a way as to ensure the implementation of customs control over the activities within the territory of free warehouses by the customs authorities, to exclude the possibility of receiving goods and their release from free warehouses out of customs control, t goods stored in free warehouses;

(4) to ensure availability of logistics equipment for the storage of goods in quantities defined by the Committee, including the availability of equipment necessary for loading and unloading and means of transport, storage facilities (weighing, placing, transporting), communication and other means;

(5) to ensure availability of the conditions for the customs authorities for the purpose of carrying out customs formalities and control, in the minimum sufficient quantities defined by the Committee;

(6) to ensure availability of constructions or equipment specifically separated or customised for goods requiring special storage conditions (perishable and fragile, requiring a certain regime of humidity and temperature, flammable, hazardous for environment);

(7) to ensure availability of automatic systems of record-registration of goods and submitting reports to customs authorities;

(8) to ensure availability of control checkpoints.

3. The Government shall define the requirements for the location, provision with facilities and equipment of structures, constructions, premises (parts of premises) or open spaces used or intended for use as free warehouses, including the requirements for fencing the territory of the free warehouse and installing a video surveillance system along the perimeter of the borderline.

4. The procedure for establishment, operation, suspension and resumption of operation of free warehouses shall be established by the Government.

 

Article 282.

Grounds for removing a possessor of a free warehouse from the register of possessors of free warehouses

 

1. Grounds for removing a legal person from the register of possessors of free warehouses shall be prescribed by Article 423 of the Customs Code of the Union.

2. The possessor of a free warehouse shall not be removed from the register of possessors of free warehouses on the ground prescribed by sub-point 4 of point 1 of Article 423 of the Customs Code of the Union in the cases when re-organisation has taken place in the manner prescribed by point 1 or point 5 of Article 64 of the Civil Code of the Republic of Armenia and has not led to the lack of conditions ensured for registration of the established legal person as the possessor of the free warehouse.

3. In accordance with point 2 of Article 423 of the Customs Code of the Union, other additional grounds for removing a legal person from the register of possessors of free warehouses in addition to the grounds prescribed by point 1 of Article 423 of the Customs Code of the Union shall be prescribed by law.

 

CHAPTER 56

 

POSSESSOR OF A DUTY-FREE SHOP

 

Article 283.

Possessor of a duty-free shop

 

1. Possessor of a duty-free shop shall be a legal person prescribed by Article 425 of the Customs Code of the Union.

2. Obligations of the possessor of a duty-free shop shall be prescribed by Article 429 of the Customs Code of the Union.

 

Article 284.

Conditions for including a legal person in the register of possessors of duty-free shops

 

1. Conditions for including a legal person in the register of possessors of duty-free shops shall be prescribed by Article 427 of the Customs Code of the Union.

2. In accordance with paragraph five of Article 427 of the Customs Code of the Union, being pre-qualified as prescribed by the decision of the Government for inclusion in the register of possessors of duty-free shops shall also be a condition for being included in the register of possessors of duty-free shops.

3. In case of including a legal person in the register of possessors of duty-free shops, a certificate confirming the fact of inclusion in the register of possessors of duty-free shops shall be issued.

4. The certificate on inclusion in the register of possessors of duty-free shops shall include the following:

(1) name, location, taxpayer identification number of the possessor of a duty-free shop;

(2) location of the trade hall of the duty-free shop;

(3) location of the warehouse of the duty-free shop;

(4) name of the customs authority issuing the certificate;

(5) date of issue of the certificate and the number thereof.

5. Places of duty-free shops shall be determined by the Committee agreed upon with the National Security Service of the Republic of Armenia.

6. Persons pre-qualified in accordance with the procedure provided for by part 2 of this Article may carry out activities in the places provided for by part 5 of this Article, in case of being selected through a tender.

7. The procedure for conducting the tender provided for by part 6 of this Article shall be established by the Government.

(Article 284 supplemented by HO-113-N of 28 February 2024)

 

Article 285.

Application for inclusion in the register of possessors of duty-free shops

 

1. The application for inclusion in the register of possessors of duty-free shops shall contain the following:

(1) information on the name, location of the duty-free shop;

(2) information on constructions under the possession of possessors of duty-free shops and designed for use as a duty-free shop, their location, provision with facilities, equipment and logistics support;

(3) information on being pre-qualified and being declared as a winner by the result of the tender organised as prescribed by part 7 of Article 284 of this Law.

2. Originals of documents confirming the submitted information, as well as of documents confirming the fulfilment of the requirements provided for by Article 286 of this Law and of the opinion issued by relevant state authorised bodies or the signed copies thereof shall be attached to the application for inclusion in the register of possessors of duty-free shops, which shall be returned after examination.

(Article 285 supplemented by HO-113-N of 28 February 2024)

 

Article 286.

Requirements for provision with facilities, equipment, location and conditions for sale of goods of duty free shops

 

1. Duty-free shops shall be separated territories within the zone of customs control, wherein goods released exclusively under the customs procedure “Duty-free trade” shall be permitted for sale (storage).

2. The territory of a duty-free shop may include more than one trade hall, warehouse premises and auxiliary premises located at the same address.

3. Requirements for provision with facilities, equipment, and location of a duty free shop shall be the following:

(1) a duty-free shop must have a trade hall and a warehouse premise, which must be located within the zone of customs control;

(2) the territory of a duty-free shop must be equipped in such a way as to carry out the sale of goods exclusively in the trade hall of the duty-free shop and to ensure the storage of goods and the possibility to exercise customs control;

(3) warehouses and auxiliary premises of a duty-free shop must be customised and equipped in such a way as to exclude the entry of unauthorised persons (persons that are not employees of the duty-free shop or do not have any rights to the goods located in the duty-free shops, including employees who do not have sufficient authority over the warehouse), as well as must be provided with the possibility to apply customs identification means on constructions;

(4) a duty-free shop may not include any object that is not related to the activity of the shop;

(5) the warehouse of a duty-free shop shall be located only in a closed construction and shall be designed exclusively for implementation of actions ensuring the activity of the duty-free shop;

(6) trade halls of a duty-free shop must be located in such a way as to exclude taking goods entered into the duty-free shop out of the store hall without customs control, except for goods sold in retail;

(7) trade halls of a duty-free shop must be located after the place designated for direct customs control purpose for passengers departing from the Republic of Armenia and citizens crossing the border, whereas for passengers arriving in the territory of the Republic of Armenia and citizens crossing the border — in the customs control zones located before the designated place for direct customs control purpose;

(8) observance of proper sanitary and hygienic conditions, security alarm and fire safety requirements for the protection of constructions shall be ensured in the territories of duty-free shops and warehouses;

(9) availability of a security service (own or leased) for fulfilling the protection of the territory of duty-free shops.

4. Requirements for the sale of goods in duty-free shops shall be the following:

(1) goods released under the customs procedure "Duty-free trade" shall be transferred to the trade hall or warehouse of the duty-free shop, as well as from the warehouse to the hall of the duty-free shop under the control of customs authorities;

(2) sale of goods shall be carried out exclusively from the trade hall of the duty-free shop;

(3) sale of goods in duty-free shops shall be carried out by means of cash register machines;

(4) sales of goods in duty-free shops shall be carried out with the currency of the Republic of Armenia and with foreign currency freely convertible in the Republic of Armenia, in cash, by cheque, with payment cards and other payment means.

5. A person making purchases from duty-free shops shall be obliged to provide a document certifying the right to make purchases from a duty-free shop.

6. The procedure for entering goods into a duty-free shop and inclusion of sale thereof, as well as submitting reports on these goods to customs authorities shall be defined by the Government, and the record-registration and control of the movement of goods of a warehouse and trade halls shall be carried out as defined by the Committee.

7. Preparation of goods for further delivery and sale, division into consignments, sorting, packing, re-packing, labelling, loading, unloading, stamping and any other action not resulting in change of the characteristics and the designated purpose of goods may be carried out upon the permission of the customs authority with regard to goods stored in the storage area.

8. The use of trade halls, auxiliary premises and the warehouse of a duty-free shop shall not be permitted for the storage and sale of goods not placed under the customs procedure "Duty-free trade".

9. The Government may define other requirements for duty-free shops.

 

Article 287.

Grounds for removing a possessor of a duty-free shop from the register of possessors of a duty-free shop

 

1. Grounds for removing a possessor of a duty-free shop from the register of possessors of a duty-free shop shall be prescribed by Article 428 of the Customs Code of the Union.

1.1 Failure by a possessor of a duty-free shop to fulfil the obligations assumed by the result of pre-qualification shall be a ground for removing the possessor of a duty-free shop from the register of possessors of a duty-free shop.

2. The possessor of a duty-free shop shall not be removed from the register of possessors of a duty-free shop on the ground prescribed by sub-point 4 of point 1 of Article 428 of the Customs Code of the Union in the cases when re-organisation has taken place in the manner prescribed by point 1 or point 5 of Article 64 of the Civil Code of the Republic of Armenia and has not led to the lack of conditions ensured for the registration of the established legal person as a possessor of a duty-free shop.

3. In accordance with point 2 of Article 428 of the Customs Code of the Union, other additional grounds for removing a legal person from the register of possessors of a duty-free shop in addition to the grounds prescribed by point 1 of Article 428 of the Customs Code of the Union shall be prescribed by law.

(Article 287 supplemented by HO-113-N of 28 February 2024)

 

CHAPTER 57

 

AUTHORISED ECONOMIC OPERATOR

 

Article 288.

Authorised economic operator

 

1. An authorised economic operator shall be a legal person established as prescribed by law and engaged in foreign economic activity that corresponds to the criteria prescribed by the Customs Code of the Union and this Law.

2. The procedure for including a legal person in the register of authorised economic operators, removing it from the register, issuing a certificate on inclusion in the register of authorised economic operators, suspending and restoring the certificate may be defined by the Government with respect to the part not regulated by the Customs Code of the Union.

 

Article 289.

Conditions for inclusion in the register of authorised economic operators

 

1. Conditions for including a legal person in the register of authorised economic operators shall be prescribed by Article 433 of the Customs Code of the Union.

2. In accordance with paragraph two of sub-point 1 of point 1 of Article 433 of the Customs Code of the Union, the submission of no less than 10 declarations of goods during each year by persons carrying out foreign economic activities (except for the provision of goods transportation services) or transportation of goods with a total value equivalent to no less than EUR 500 000 during each year through the customs border of the Union, calculated at the current exchange rate as of the date of registration of the application by the customs authority, shall be a condition for inclusion in the register of authorised economic operators with the issuance of the 1st type certificate of the authorised economic operator.

3. In accordance with paragraph four of sub-point 1 of point 1 of Article 433 of the Customs Code of the Union, the submission of no less than 200 customs declarations per year by persons carrying out activities in the field of customs affairs as a customs representative or the declaration of goods with a total value equivalent to no less than EUR 500 000 during each year in the customs declarations submitted by them each year, calculated at the current exchange rate as of the date of registration of the application by the customs authority, shall be a condition for inclusion in the register of authorised economic operators with the issuance of the 1st type certificate of the authorised economic operator.

4. In accordance with paragraph five of sub-point 1 of point 1 of Article 433 of the Customs Code of the Union, the implementation of protection of goods with a total value equivalent to no less than EUR 500 000 by persons carrying out activities in the field of customs affairs as possessors of customs warehouses and temporary storage warehouses during each year, calculated at the current exchange rate as of the date of registration of the application by the customs authority, shall be a condition for inclusion in the register of authorised economic operators with the issuance of the 1st type certificate of the authorised economic operator.

5. The list of offences prescribed by this Law, the legislation of the Republic of Armenia on administrative and criminal offences, which are a ground for not including a legal person in the register of authorised economic operators, shall be defined by the Government.

6. In accordance with sub-point 7 of point 1 of Article 433 of the Customs Code of the Union, the requirements for the system for record-registration of goods of authorised economic operators shall be defined by the Committee.

7. In accordance with point 4 of Article 433 of the Customs Code of the Union, in case the financial stability of a legal person engaged in the production or export of goods does not correspond to the indicator defined as prescribed by point 7 of Article 433 of the Customs Code of the Union, the provision of a security for the fulfilment of the obligations of the authorised economic operator in the amount equivalent to no less than EUR 150 000, calculated at the current exchange rate as of the date of registration of the application by the customs authority, shall be a condition for inclusion in the register of authorised economic operators with the issuance of the 2nd type certificate.

8. In accordance with point 6 of Article 433 of the Customs Code of the Union, the availability of a certificate of a law-abiding taxpayer obtained as prescribed by Article 293.1 of the Tax Code of the Republic of Armenia shall also be a condition for inclusion in the register of authorised economic operators with the issuance of all types of certificates provided for by the Customs Code of the Union shall be.

9. The Government may, in accordance with point 7 of Article 433 of the Customs Code of the Union, define the procedure for determining the financial stability of legal persons contending for inclusion in the register of authorised economic operators, in the cases provided for by the Commission.

 

Article 290.

Peculiarities of temporary storage of goods in constructions, premises or open spaces of an authorised economic operator

 

1. Temporary storage of goods in constructions, premises or open spaces of an authorised economic operator shall be carried out in accordance with Article 439 of the Customs Code of the Union.

2. The peculiarities of storage of temporarily stored goods and other goods in constructions, premises or open spaces of an authorised economic operator shall be defined by the Government.

 

Article 291.

Application for inclusion in the register of authorised economic operators

 

1. In order to be included in the register of authorised economic operators, a legal person shall submit an application to the customs authority electronically or in hard copy, the form, procedure for filling in whereof, as well as the list of documents certifying the information included in the mentioned application shall be defined by the Commission.

2. A legal person shall submit the application provided for by part 1 of this Article along with the originals of the document certifying the security of fulfilment of the obligations of the authorised economic operator provided for by the Customs Code of the Union, which shall be returned after examination.

3. The customs authorities shall examine the application submitted by the legal person in accordance with part 1 of this Article for inclusion in the register of authorised economic operators within the shortest possible time period, which may not exceed 60 calendar days.

 

Article 292.

Maintenance of the register of authorised economic operators and the certificate on inclusion in the register of authorised economic operators

 

1. The customs authority shall maintain the electronic register of authorised economic operators and ensure its periodic publication through information systems in accordance with Article 431 of the Customs Code of the Union.

2. The status of authorised economic operator shall be granted to the legal person by the Committee by issuing a certificate on inclusion in the register of authorised economic operators.

3. The customs authority shall, within five working days, verify the reliability of the information submitted by the authorised economic operator in accordance with sub-point 3 of point 1 of Article 442 of the Customs Code of the Union and, where necessary, amend the certificate on inclusion in the register of the authorised economic operator or issue a new certificate.

 

Article 293.

Suspension of the certificate of authorised economic operator and grounds for removing a legal person from the register of authorised economic operators

 

1. Grounds for suspending the certificate of authorised economic operator shall be prescribed by point 1 of Article 435 of the Customs Code of the Union.

2. The list of offences prescribed by the legislation of the Republic of Armenia on administrative and criminal offences, which serve as a ground for suspending the certificate of authorised economic operator in the cases prescribed by point 1 of Article 435 of the Customs Code of the Union, shall be defined by the Government.

3. In accordance with point 2 of Article 435 of the Customs Code of the Union, additional grounds for suspending the certificate of authorised economic operator may be prescribed by law.

4. Grounds for removing a legal from the register of authorised economic operators shall be prescribed by point 8 of Article 435 of the Customs Code of the Union.

5. In accordance with sub-point 3 of point 8 of Article 435 of the Customs Code of the Union, re-organisation of a legal person shall not be a ground for removing a legal person from the register of authorised economic operators in the case when the re-organisation has taken place in the manner prescribed by point 1 or point 5 of Article 64 of the Civil Code of the Republic of Armenia and has not led to the lack of observance of the conditions prescribed by the Customs Code of the Union or this Law for including the re-organised legal person in the register of authorised economic operators.

6. The list of offences prescribed by the legislation of the Republic of Armenia on administrative and criminal offences, which serve as a ground for removing a legal person from the register of authorised economic operators in the cases prescribed by point 8 of Article 435 of the Customs Code of the Union, shall be defined by the Government shall define the.

7. In accordance with point 9 of Article 435 of the Customs Code of the Union, additional grounds for removing a legal person from the register of authorised economic operators shall be prescribed by law.

8. In case of detecting a violation of customs rules prescribed by Chapter 58 of this Law, the certificate of authorised economic operator shall not be suspended on the ground stipulated by sub-point 11 of point 1 of Article 435 of the Customs Code of the Union, if proceedings for violation of customs rules have been initiated against the authorised economic operator for the first time during the year covering the date of detection of the violation of the customs rules.

 

Article 294.

System for including an authorised economic operator and procedure for submitting reports

 

1. An authorised economic operator shall be obliged to perform separated accounting for goods imported and exported thereby, by providing complete and accurate accounting and tax accounting of goods subject to customs control and their movement in accordance with the legislation of the Republic of Armenia.

2. The authorised economic operator shall be obliged to submit a report — each quarter, including the 10th day of the month following the quarter — on goods transported with special simplifications.

3. The report on goods transported with special simplifications shall include information on the date of placing the goods under temporary storage, the special simplifications applied thereto, the number of the customs declaration, the CN FEA code, net and gross weight of the goods, customs value, customs fees calculated by the result of the customs formality, as well as information on the person on whose behalf the customs formalities are carried out, as well as other information necessary for customs control.

4. The reports shall be submitted to the customs authorities in hard copy or electronically, with the signature of the head of the legal person (in case of electronic form — with the electronic digital signature thereof).

5. In case of failure to submit or untimely submission of reports or submission of reports in a timely manner but with inaccurate information, the authorised economic operator shall bear liability as prescribed by this Law.

6. The form of the report submitted by the authorised economic operator as prescribed by this Article shall be defined by the Committee.

 

Article 295.

Security of fulfilment of obligations of the authorised economic operator

 

1. Security of fulfilment of obligations of the authorised economic operator shall be implemented in accordance with the provisions prescribed by Article 436 of the Customs Code of the Union and this Article.

2. Security of fulfilment of obligations of the authorised economic operator shall be implemented in accordance with any one or by combination of several of the methods of security for fulfilment of obligations with respect to the payment of customs duties, taxes, special, anti-dumping and compensation duties prescribed by point 1 of Article 63 of the Customs Code of the Union and as prescribed by Articles 51-54 of this Law in accordance with point 2 of Article 63 of the Customs Code of the Union.

3. In case of security of fulfilment of obligations of the authorised economic operator with respect to customs duties, taxes, special, anti-dumping and compensation duties by the authorised economic operator, the order and procedure for the use thereof shall be defined by the Committee.

4. The security of fulfilment of obligations of the authorised economic operator prescribed by Article 436 of the Customs Code of the Union by the authorised economic operator shall be provided in the currency of the Republic of Armenia, calculated in accordance with point 11 of Article 436 of the Customs Code of the Union.

5. Replacement of the method of the security of fulfilment of obligations provided by the authorised economic operator shall be carried out if the condition prescribed by point 8 of Article 436 of the Customs Code of the Union has been met.

6. The application for replacement of the method of the security of fulfilment of obligations provided by the authorised economic operator shall be submitted to the customs authority.

7. The application referred to in part 6 of this Article shall be submitted in the chosen way along with a document certifying the security of fulfilment of obligations of the authorised economic operator, electronically or on paper carrier, by indicating in the application the security of fulfilment of obligations of the authorised economic operator or its part which is planned to be replaced.

8. The customs authority shall examine the application referred to in part 6 of this Article and attached documents within five working days. In case of granting the application, the customs authority shall replace the security of fulfilment of obligations of the authorised economic operator with a new security, by returning the previously provided security.

9. In case the security of fulfilment of obligations provided by the authorised economic operator in accordance with this Article is not acceptable, the customs authority shall return it within five working days, by notifying in writing of the rejection of the application and the reasons for it.

10. The reduction of the amount of the security of fulfilment of obligations of the authorised economic operator shall be carried out in accordance with the conditions prescribed by points 12-22 of Article 436 of the Customs Code of the Union, on the basis of an application submitted to the customs authority by the authorised economic operator.

11. The application referred to in part 10 of this Article shall be submitted electronically or on paper carrier.

12. The customs authority shall, within five working days after receiving the application referred to in part 10 of this Article, verify the information at its disposal regarding the activities of the authorised economic operator, as well as the observance of the conditions prescribed by points 12-22 of Article 436 of the Customs Code of the Union. In case of meeting the prescribed conditions, the customs authority shall make a decision on the reduction of the amount of the security of fulfilment of obligations provided by the authorised economic operator, of which the authorised economic operator shall be notified electronically or on paper carrier.

13. If the activities of the authorised economic operator do not meet the conditions prescribed by this part, the customs authority shall, within five working days after receiving the application referred to in part 10 of this Article, notify the authorised economic operator electronically or on paper carrier of the rejection of the reduction of the amount of the security of fulfilment of obligations provided thereby.

14. The security of fulfilment of obligations provided by authorised economic operators shall be returned on the basis of the application submitted thereby electronically or on paper carrier on the working day following the day of submitting the application, in case of meeting the conditions prescribed by points 23 and 25 of Article 436 of the Customs Code of the Union.

15. In addition to the case prescribed by point 25 of Article 436 of the Customs Code of the Union, additional cases of or requirements for returning the security of fulfilment of obligations of the authorised economic operator shall be prescribed by law.

16. The Government may, in accordance with point 26 of Article 436 of the Customs Code of the Union, define the procedure for and cases of returning the documents confirming the provision of security of fulfilment of obligations of the authorised economic operator.

 

Article 296.

Special simplifications provided to authorised economic operators

 

1. Special simplifications provided to authorised economic operators shall be prescribed by Article 437 of the Customs Code of the Union.

2. In accordance with sub-point 2 of point 3 of Article 437 of the Customs Code of the Union, authorised economic operators having the 2nd type certificate may temporarily store goods of persons not having the status of authorised economic operator in their premises (parts of premises), constructions or open spaces (parts of open spaces).

3. The customs authority shall define the requirements in case of compliance with which the authorised economic operators may apply the special simplification referred to in part 2 of this Article.

 

Article 297.

Discharge of the customs procedure "Customs transit" in customs control zones established in constructions, premises or open spaces of authorised economic operators

 

1. The peculiarities of discharge of the customs procedure "Customs transit" in customs control zones established in constructions, premises (parts of premises) or open spaces (parts of open spaces) of an authorised economic operator shall be prescribed by Article 440 of the Customs Code of the Union.

2. In accordance with paragraph one of point 4 of Article 440 of the Customs Code of the Union, a protocol on transfer and acceptance of goods shall be drawn up in three copies during acceptance of goods from the carrier by the authorised economic operator. They shall be certified by the carrier and the authorised economic operator.

3. The form of the protocol referred to in part 2 of this Article, as well as the procedure for distributing copies of the protocol shall be defined by the Committee.

4. The Government may, in accordance with point 9 of Article 440 of the Customs Code of the Union, define the peculiarities of discharging the customs procedure “Customs transit” applied for goods transported by railway transport in customs control zones established in constructions, premises (parts of premises) or open spaces (parts of open spaces) of the authorised economic.

 

Article 298.

Peculiarities of releasing goods being declared by the authorised economic operator before submitting the declaration of goods

 

1. Peculiarities of releasing goods being declared by the authorised economic operator before submitting the declaration of goods shall be prescribed by Article 441 of the Customs Code of the Union.

2. In accordance with point 3 of Article 441 of the Customs Code of the Union, the customs authority shall define the cases when the application submitted by the authorised economic operator for releasing the goods before submitting the declaration of goods shall be submitted to the customs authorities on paper carrier.

 

Article 299.

Obligations of an authorised economic operator

 

1. Obligations of an authorised economic operator shall be prescribed by Article 442 of the Customs Code of the Union.

2. The authorised economic operator shall, in accordance with sub-point 5 of point 1 of Article 442 of the Customs Code of the Union, be obliged to submit a report to the customs authorities as prescribed by Article 294 of this Law.

 

Article 300.

Co-operation between customs authorities and authorised economic operators

 

1. In accordance with point 1 of Article 443 of the Customs Code of the Union, a memorandum (contract) of co-operation shall be concluded between customs authorities and authorised economic operators.

2. The Government may define the procedure for co-operation between customs authorities and authorised economic operators.

 

SECTION 9

 

PROCEEDINGS WITH REGARD TO VIOLATION OF CUSTOMS RULES AND LIABILITY FOR VIOLATION OF CUSTOMS RULES

 

CHAPTER 58

 

VIOLATION OF CUSTOMS RULES

 

Article 301.

Violation of customs rules

 

1. Violation of customs rules shall be deemed any illegal action or omission by a person, which is directed against the procedure for carrying out customs control and customs formality of goods and means of transport transported across the state border of the Republic of Armenia, prescribed by the customs legislation of the Republic of Armenia and the international treaties of the Republic of Armenia in the customs field, and for which liability is provided for by this Law.

2. Natural persons and officials shall be held liable for intentionally or negligently violating the customs rules.

3. The concepts applied in this Chapter shall be used in the meanings of the Customs Code of the Union and the Administrative Offences Code of the Republic of Armenia.

 

Article 302.

Obstruction of actions of the official of the customs authority and failure to comply with the lawful request of the official of the customs authority

 

1. Obstruction of actions performed by the official of the customs authority within the scope of customs control shall:

entail a fine in the amount of AMD 100 000.

2. Failure to comply with the lawful request of the official of the customs authority relating to the customs sector shall:

entail a fine of in the amount of AMD 100 000.

3. Failure to submit the necessary documents or information regarding goods or vehicles for carrying out customs operations or customs control upon the request of the customs authority, regardless of submitting a customs declaration or another customs document, shall:

entail a fine in the amount of AMD 30 000 for natural persons and in the amount of AMD 50 000 for officials.

 

Article 302.1.

Violation of mandatory rules of conduct in customs control zones

 

1. Violation of mandatory rules of conduct in customs control zones shall:

entail a warning.

2. Commission of the act referred to in part 1 of this Article again within a period six months shall:

entail a fine in the amount of AMD 200 000.

(Article 302.1 supplemented by HO-317-N of 25 October 2023)

 

Article 303.

Insulting an official of the customs authority during the performance of official duties

 

1. Insulting an official of the customs authority during the performance of official duties arising from the duties of the customs authorities prescribed by the Law “On public service”, the Law “On customs service” and this Law shall:

entail a fine in the amount of AMD 100 000.

 

Article 304.

Failure to submit documents and information to the customs authority for carrying out customs operations or customs control

 

1. Failure to submit customs declarations or other customs documents subject to mandatory submission, prescribed by the Customs Code of the Union or this Law, within the prescribed time limits shall:

entail a fine in the amount of AMD 30 000 for natural persons and in the amount of AMD 50 000 for officials.

 

Article 305.

Failure to deliver goods, means of transport or accompanying documents transported under customs control to the customs authorities or failure to observe the time limit for customs transit or the transit route, or delivery of goods or means of transport to a place different from the place of delivery defined by the customs authority

 

1. Failure to deliver goods or means of transport transported under customs control or documents accompanying them to the customs authorities, failure to observe the time limit for customs transit or the transit route defined by the customs authority, or delivery of goods or means of transport to a place different from the place of delivery defined by the customs authority shall:

entail a fine in the amount of AMD 100 000.

 

Article 306.

Removing, damaging, losing or changing customs identification means

 

1. Removing or damaging or losing or changing, without the permission of the customs authority, the customs identification means applied by customs authorities or in the case provided for by sub-point 6 of point 2 of Article 437 of the Customs Code of the Union by the authorised economic operator shall:

entail a fine in the amount of AMD 200 000.

2. Commission of the act referred to in part 1 of this Article again within a year shall:

entail a fine in the amount of AMD 400 000.

 

Article 307.

Cargo and other operations carried out without the permission of the customs authority

 

1. Taking goods under customs control out of the customs control zone, loading, unloading, transloading, removing damages to packages, opening packages, packing or repacking without the written permit of the customs authority shall:

entail a fine in the amount of 20 % of the customs value of such goods, but no less than AMD 1 000 000.

2. Commission of the violation provided for by part 1 of this Article again within one year shall:

entail a fine in the amount of 40 % of the customs value of such goods, but no less than AMD 2 000 000.

 

Article 308.

Transfer, alienation, destruction of goods without the permission of the customs authority, as well as loss thereof

 

1. The full or partial transfer, alienation, destruction of goods or means of transport under customs control without the written permit of the customs authority (except for the case of transfer of means of transport for personal use by natural persons), as well as loss of goods under customs control shall:

entail a fine in the amount of 30 % of the customs value of such goods and means of transport.

2. The transfer of means of transport for personal use under customs control by natural persons without the written permit of the customs authority shall:

entail a fine in the amount of 20 % of the customs value of such means of transport.

 

Article 309.

Violation of the obligation of further export or further import by natural persons

 

1. Failure to export — within the prescribed time limits — the means of transport for personal use imported to the Republic of Armenia by natural persons with the obligation of further export from the Republic of Armenia, where the obligation of further export has been violated by more than ten days, shall:

entail a fine in the amount of 10 % of the amount of customs fees (except for the state duty charged for carrying out customs operations by customs authorities) envisaged for the import for the purpose of release of those means of transport for free circulation by natural persons, but no less than AMD 30 000.

2. Failure to import — within the prescribed time limits — the means of transport for personal use exported from the Republic of Armenia by natural persons with the obligation of further import to the Republic of Armenia, where the obligation of further import has been violated by more than ten days, shall:

entail a fine in the amount of AMD 30 000.

3. Failure to take out of the Republic of Armenia the means of transport for personal use registered in other member states of the Union after crossing the state border of the Republic of Armenia by resident natural persons of the member states of the Union within the time limits prescribed by part 2 of Article 178 of this Law for the stay in the territory of the Republic of Armenia shall:

entail a fine in the amount of AMD 30 000.

 

Article 310.

Violation of obligations of further export or further import

 

1. Failure to export — within the prescribed time limits — goods or means of transport imported to the Republic of Armenia with the obligation of further export shall:

entail a fine in the amount of 20 % of the amount of customs fees, other taxes, duties and fees charged by the customs authorities (except for the state duty charged for the execution of customs operations by the customs authorities) and envisaged for those goods and means of transport by the customs procedure "Release for domestic consumption" as of the day of the violation, but no less than AMD 50 000.

2. Failure to import — within the prescribed time limits — to the Republic of Armenia goods or means of transport exported with the obligation of further import shall:

entail a fine as of the day of the violation, where those goods and means of transport had been imported under the customs procedure "Release for domestic consumption", in the amount of 20 % of the amount of customs fees, other taxes, duties and fees (except for the state duty charged for the execution of customs operations by the customs authorities), but no less than AMD 50 000.

3. The same violation that was accompanied with the alienation of goods or means of transport shall:

entail imposition of a fine in the amount of the customs value of the alienated goods and means of transport.

 

Article 311.

Performance of prohibited operations over goods and means of transport under customs control

 

1. In cases prohibited by the legislation regulating the customs sector, performance of operations over goods and means of transport under customs control which cause changes thereto other than those caused by their transportation, storage under natural wear and tear and regular conditions shall:

entail a fine in the amount of 50 % of the customs value of those goods, but no less than AMD 200 000.

 

Article 312.

Transportation of goods and means of transport across the border of the Republic of Armenia by circumventing customs control

 

1. Transportation of goods or means of transport under customs control across the state border of the Republic of Armenia by circumventing customs control, i.e. their transportation across the state border of the Republic of Armenia beyond the location of the customs authority, in the absence of elements of crime, shall:

entail imposition of a fine in the amount of 50 % of the customs value of those goods or means of transport, but no less than AMD 1 000 000.

 

Article 313.

Transportation of goods across the state border of the Republic of Armenia by concealing from the customs control

 

1. Transportation of goods under customs control across the state border of the Republic of Armenia by concealing them from customs control by using caches and through other methods making the detection of goods difficult or changing the appearance of goods, in the absence of elements of crime, shall:

entail a fine in the amount of 50 % of the customs value of those goods, but no less than AMD 1 000 000.

 

Article 314.

Illegal transportation of cash monetary funds and payment instruments

 

1. Illegal transportation of cash monetary funds or payment instruments across the customs border of the Union, committed on a small-scale and without customs control or by concealing them from customs control or failure to declare accurate information thereon as prescribed or declaring under a different name or by violating the rules of transportation thereof or using customs or other documents by fraud shall:

entail a fine in the amount of 10 % of the nominal value of the sum of illegally transported cash monetary funds or illegally transported payment instruments.

2. The action provided for by part 1 of this article shall be considered committed on a small-scale, where the sum of the illegally transported cash monetary funds or the value of the illegally transported payment instruments exceeds the value of cash monetary funds or payment instruments permitted by the customs legislation of the Union transported without a written declaration, but does not exceed the large-scale prescribed by part 4 of Article 291 of the Criminal Code of the Republic of Armenia. When calculating the amount of the value of the sum of illegally transported cash monetary funds or illegally transported payment instruments, the amount the transportation whereof without a declaration is permitted by the legislation of the Union shall be subject to deduction from the sum of the illegally transported cash monetary funds or from the value of the illegally transported payment instruments.

 

Article 315.

Transportation of goods and means of transport across the state border of the Republic of Armenia by using customs and other documents or customs identification means by deception

 

1. Transportation of goods or means of transport across the state border of the Republic of Armenia or handing them over for temporary storage by submitting to the customs authority customs and other documents that are forged, illegally obtained, declared invalid or pertaining to other goods and means of transport, as well as by using fraudulent customs identification means for carrying out customs operations or control, in the absence of elements of crime, shall:

entail a fine against natural persons in the amount of 10 % of the value of those goods or means of transport, but no less than AMD 500 000, and against officials in the amount of 50 % of the customs value of those goods or means of transport, but no less than AMD 1 000 000.

 

Article 316.

Failure to declare goods and means of transport or declaration thereof under not their name or provision of inaccurate information during declaration

 

1. Failure to declare goods or means of transport or declaration thereof under not their name or provision of inaccurate information in the declaration which does not cause non-calculation (less calculation) or failure to pay (less payment) of customs fees, other taxes, duties and fees (except for the state duty charged for the performance of customs operations by the customs authorities) charged by the customs authorities, as well as non- application of prohibitions and limitations, measures of non-tariff regulation, in the absence of elements of crime, shall:

entail a warning.

2. Commission of the act specified in part 1 of this Article again within one year shall:

entail a fine in the amount of AMD 10 000.

3. The act prescribed by part 1 of this Article that causes non-calculation (less calculation) or failure to pay (less payment) of customs fees, other taxes, duties and fees (except for the state duty charged for the performance of customs operations by the customs authorities) charged by the customs authorities, in the absence of elements of crime, shall:

entail a fine in the amount of 20 % of the sum of not calculated (less calculated) or not paid (less paid) customs fees, other taxes, duties and fees (except for the state duty charged for the performance of customs operations by the customs authorities) charged by the customs authorities, but no less than AMD 30 000.

4. The act prescribed by part 1 of this Article that causes non-application of prohibitions and limitations, measures of non-tariff regulation, shall:

entail imposition of a fine in the amount of 50 % of the customs value of those goods or means of transport, but no less than in the amount of AMD 30 000.

5. The declarant or customs representative shall be exempt from the administrative liability prescribed for the offence provided for by this Article, where he or she has voluntarily notified the customs authority which has carried out the release of the goods about the failure to declare the goods or means of transport or declaration thereof under not their name or provision of inaccurate information in the declaration, when the following conditions have been met before the date preceding such notification:

(1) where the customs authority has not detected a fact of violation of customs rules with regard to the goods specified in the notification;

(2) where the customs authority has not notified the declarant of carrying out customs control after the release of the goods or has not started a customs inspection.

 

Article 317.

Illegal use or disposal of conditionally released goods and means of transport

 

1. The use or disposal of conditionally released goods or means of transport in violation of the condition of release prescribed by the customs legislation that has led to failure to pay customs fees, other taxes, duties and fees charged by the customs authorities shall:

entail a fine in the amount of 50 % of the total sum of import customs duties, taxes not calculated (calculated less) or not paid (paid less) due to the application of benefits for goods or means of transport (except for the state duty charged for the performance of customs operations by the customs authorities).

The act prescribed by part 1 of this Article that has not led to failure to pay import customs duties, taxes and non-application of prohibitions and restrictions, measures of non-tariff regulation shall: entail a fine in the amount of AMD 20 000.

2. The act prescribed by part 1 of this Article that has led to prohibitions and restrictions, as well as non-application of measures of non-tariff regulation shall:

entail a fine in the amount of 20 % of the customs value of those goods or means of transport, but no less than AMD 100 000.

 

Article 318.

Violation of the time limits prescribed for the payment of customs fees, other taxes, duties and fees charged by customs authorities

 

1. Failure to pay import customs duties, taxes, customs fees, other taxes, duties and fees charged by customs authorities within the prescribed time limits shall:

entail a fine in the amount of AMD 10 000.

 

Article 319.

Failure by persons carrying out activities in the sector of customs affairs to fulfil the obligations prescribed by the Customs Code of the Union

 

1. Failure by customs representatives to fulfil the obligations prescribed by Article 405 of the Customs Code of the Union, by possessors of temporary storage warehouses to fulfil the obligations prescribed by Article 414 of the Customs Code of the Union, by possessors of customs warehouses to fulfil the obligations prescribed by Article 419 of the Customs Code of the Union, by possessors of free warehouses to fulfil the obligations prescribed by Article 424 of the Customs Code of the Union, by possessors of duty free shops to fulfil the obligations prescribed by Article 429 of the Customs Code of the Union shall:

entail a fine against officials in the amount of AMD 30 000.

 

Article 320.

Failure by the authorised economic operator to fulfil the obligations prescribed by the Customs Code of the Union

 

1. Failure by the authorised economic operator to submit reports as prescribed by this Law, as well as failure to fulfil the obligations prescribed by sub-points 3 and 4 of point 1, sub-points 2 and 3 of point 3 of Article 442 of the Customs Code of the Union shall:

entail a fine against officials in the amount of AMD 30 000.

 

Article 321.

Failure to take goods located in customs control zones out of the territory of customs control after the release thereof

 

1. Failure to take goods located in the customs control zones out of the territory thereof fully or partially within one working day following the day of release thereof, unless their remain in the territory of that customs control zone derives from the conditions for release of those goods, within the scope of any one of the customs procedures "Customs warehouse", "Free customs zone", "Free warehouse" or "Duty free trade": shall entail a fine:

(1) in the amount of AMD 10 000, where the goods continued to stay in the territory of that customs control zone for no longer than two working days from the day of release thereof;

(2) in the amount of AMD 5 000 for each tonne (full or incomplete) of goods not taken out of the territory of that customs control zone for each calendar day exceeding the term specified in part 1 of this Article;

(3) at border crossing points, in the amount of AMD 10 000, where the goods continued to be in the territory of that customs control zone after their release for more than three hours, but no more than two working days;

(4) at border crossing points, in the amount of AMD 5 000 for each tonne (full or incomplete) of goods not taken out of the territory of that customs control zone for each calendar day exceeding the term specified in point 3 of this Article.

 

Article 321.1

Failure to fulfil or improper fulfilment of obligations by the national operator ensuring traceability by using GPS lead seals for goods under customs control in the cases defined in accordance with the Treaty "On the use of navigation lead seals for tracking carriages in the Eurasian Economic Union" signed on 19 April 2022

 

1. Failure to fulfil or improper fulfilment of the obligation to ensure uninterrupted operation of the information system used by the national operator ensuring traceability by using GPS lead seals for goods under customs control in the cases defined in accordance with the Treaty "On the use of navigation lead seals for tracking carriages in the Eurasian Economic Union" signed on 19 April 2022, defined by the mentioned Treaty (except in cases of force majeure), which does not result in non-calculation (calculation less) or non-payment (underpayment) of customs fees, other taxes, duties and fees charged by customs authorities (except for the state duty charged by customs authorities for the performance of customs operations), as well as non-application of prohibitions and restrictions in the absence of elements of crime shall:

entail a fine in the amount of AMD 30 000.

2. Commission of the violation prescribed by part 1 of this Article again within a month shall:

entail a fine in the amount of AMD 50 000.

3. The violation prescribed by part 1 of this Article, which results in non-calculation (calculation less) or non-payment (underpayment) of customs fees, other taxes, duties and fees charged by customs authorities (except for the state duty charged by customs authorities for the performance of customs operations), in the absence of elements of crime shall:

entail a fine in the amount of 50 % of the total sum of non-calculated (calculated less) or non-paid (underpaid) customs fees, other taxes, duties and fees charged by customs authorities (except for the state duty charged by customs authorities for the performance of customs operations), but no less than AMD 100 000.

4. The violation prescribed by part 1 of this Article, which results in non-application of prohibitions and restrictions, shall:

entail imposition of a fine in the amount of 50 % of the customs value of those goods or means of transport, but no less than AMD 100 000.

5. Commission of the violations prescribed by parts 1-4 of this Article more than twice within a month shall be a ground for termination of the activity of the national operator, as prescribed by the Government.

(Article 321.1 supplemented by HO-387-N of 11 December 2023)

 

CHAPTER 59

 

PECULIARITIES OF PROCEEDINGS ON VIOLATIONS OF CUSTOMS RULES

 

Article 322.

Peculiarities of proceedings for violation of customs rules

 

1. Proceedings for cases on violation of customs rules in the customs sector provided for by Chapter 58 of this Law shall be regulated by this Chapter and by the part of the Administrative Offences Code of the Republic of Armenia not contradicting this Chapter.

2. Proceedings for cases on violation of customs rules shall be regulated by the Law "On fundamentals of administration and administrative proceedings" to the extent not regulated by the legal acts prescribed by part 1 of this Article.

3. Proceedings for cases on violation of customs rules shall be conducted by officials designated by heads of customs authorities.

4. Cases regarding violation of customs rules shall be examined and decided by the customs authorities. Heads of the customs authorities, their deputies, and heads of structural sub-divisions of the customs authority having the relevant competence, official of the customs authority with relevant competence shall have the right to examine and decide those cases on behalf of the customs authorities.

5. The head of the customs authority may take the conduct of the proceedings from one structural sub-division and assign it to another structural sub-division.

5.1. The head of one structural sub-division of customs authority may transfer the administration of proceedings to another structural subdivision of the customs authority, where the whereabouts or place of residence of the person having committed the customs offence is closer to the given structural sub-division in terms of territory, with consideration of the possibility to ensure the comprehensiveness and completeness of examination of the case.

6. The authorised official of the body conducting the proceedings for violation of customs rules may assign the performance of specific actions in proceedings for offences to an official of another customs authority to conduct through territorial procedure.

The assignment prescribed by this part must be fulfilled within five working days after the day of its receipt.

7. After initiating proceedings on the violation of customs rules, the official of the customs authority with relevant competence shall, given the required documents at his or her disposal for the adoption of relevant administrative act, and having sufficiently clarified the circumstances of the given case, examine the case immediately, in the case where no objections were filed by persons having violated customs rules, whereon a protocol shall be drawn up. Where objections were filed by persons having violated customs rules, proceedings shall be administered under the general procedure established by this Law.

(Article 322 amended, supplemented by HO-386-N of 24 October 2024)

(Law HO-386-N of 24 October 2024 contains a transitional provision)

 

Article 323.

Grounds for initiating proceedings for violations of customs rules

 

1. The grounds for initiating proceedings for violations of customs rules shall be as follows:

(1) detecting cases of a customs offence by officials of the customs authorities while exercising the powers thereof;

(2) reports of persons on customs offences;

(3) reports of the mass media on customs offences;

(4) reports received from law enforcement bodies and competent authorities of foreign states.

2. Proceedings for violations of customs rules may be initiated in case of availability of sufficient data pointing to the elements of such violation.

 

Article 324.

Processing the report on violations of customs rules

 

1. The customs authority shall, within three working days after receiving the report on violations of customs rules, perform any one of the following actions:

(1) a protocol on violation of customs rules shall be drawn up for the purpose of instituting proceedings for violation of customs rules;

(2) in case of existence of circumstances precluding the proceedings, a decision on rejecting to institute proceedings shall be rendered;

(3) the received report shall be handed over according to jurisdiction.

2. The person sending the report shall be notified of the actions provided for by part 1 of this Article.

 

Article 325.

Protocol on violation of customs rules

 

1. Proceedings for violations of customs rules shall be initiated by drawing up a report on violation of customs rules.

The form of the protocol provided for by this part and the procedure for completion thereof shall be defined by the Committee.

2. The information provided for by Article 255 of the Administrative Offences Code of the Republic of Armenia, the electronic mail address, where available, as well as the detailed description of the customs offence and the preliminary decision on the action according to the relevant article of the Customs Code of the Union and this Law, information on the objects and documents taken, as well as other circumstances essential for the case shall be indicated in the protocol specified in part 1 of this Article.

3. The protocol specified in part 1 of this Article shall be read by the person drawing it up, as well as all the participants of the action, the participation of a translator shall be ensured upon necessity, and the rights thereof shall be explained to them.

4. The protocol specified in part 1 of this Article shall be signed by the official drawing it up, the person having committed a customs offence, where present, and the witnesses.

5. Where the person having committed an offence refuses to sign the protocol, a relevant note shall be made in the protocol regarding the reasons for such refusal. The explanation of the offender shall be attached to the protocol.

6. The protocol on violation of customs rules shall be drawn up in two copies, one copy of which shall be handed over to the person having committed a customs offence with a signature or shall be sent to him or her with an accompanying letter.

 

Article 325.1.

Procedure for notifications regarding the cases on violations of customs rules

 

1. The documents of the proceedings regarding the violation of customs rules, initiated against head of executive body of taxpayer, prescribed by the Tax Code of the Republic of Armenia (hereinafter referred to as “the Taxpayer” ), against individual entrepreneur, which are subject to mandatory notification under the law (protocols, letters of notification, decisions, acts etc.), may be notified in an electronic form, which shall be implemented through posting on the personal page of the taxpayer of the electronic management system for submission of reports of the tax authority.

2. The head of the executive body of the taxpayer or individual entrepreneur, having violated the customs rules, shall be considered as properly notified on the day of posting the documents specified in part 1 of this Article on the personal page of taxpayer of the electronic management system of submission of reports of the tax authority.

3. The documents specified in part 1 of this Article shall be notified to the employee of the taxpayer having violated customs rules and to the physical person not considered as an employee of the taxpayer, through the system for notification of persons of “YesEm” national identification platform, and the persons specified in this part shall be considered as notified on the third day following the day of uploading the documents into the system.

4. The documents subject to mandatory notification shall be forwarded to the foreign physical person having violated customs rules, who stays in the Republic of Armenia in the course of the proceedings, however has failed to submit information to the customs authority regarding his or her place of residence or record–registration in the Republic of Armenia, via the electronic mail address provided by him or her, which shall be verified by the electronic management system, and shall be considered as notified on the third day following the day of forwarding the notified documents.

In case of absence of an electronic mail, the notification shall be made through posting them on the official Internet website of public notifications of the Republic of Armenia, where the person having violated customs rules shall be considered as properly notified from the day of posting these documents on the website.

(Article 325.1 supplemented by HO-386-N of 24 October 2024)

(Law HO-386-N of 24 October 2024 contains a transitional provision)

 

Article 326.

Administrative arrest

 

1. Administrative arrest for up to three hours of a person having committed a violation of customs rules shall be permitted for the purpose of drawing up the protocol on violation of customs rules, rendering the decision on the violation of customs rules, where the person having committed a violation of customs rules obstructs the exercise of the functions of the officials of the customs authorities, refuses to stop the offense being committed, or other measures for establishing the identity of the person having committed a violation of customs rules have been exhausted.

2. When sufficient data are available on the transportation of goods across the customs border concealed in the body by a person and where the person obstructs the exercise of the functions of the officials of the customs authority during the personal inspection, attempts to flee from the scene of the incident, he or she may be arrested for up to six hours by immediately informing the prosecutor thereof.

3. The term of administrative arrest shall be calculated as prescribed by the Administrative Offences Code of the Republic of Armenia.

4. A protocol on administrative arrest shall be drawn up, wherein the position, name and surname of the person drawing it up, data of the arrested person, grounds for the arrest, place, time, and date thereof shall be specified.

5. Within the meaning of this Article, failure to obey the lawful demands of officials of customs authorities, showing resistance to officials of customs authorities, hindering the detection of goods concealed from customs control or otherwise obstructing the performance of official duties of officials of customs authorities, in the cases provided for by parts 1 and 2 of this Article, shall be deemed to be obstructing the exercise of functions of officials of customs authorities.

(Article 326 supplemented, amended by HO-317-N of 25 October 2023)

 

Article 327.

Taking goods, means of transport and documents

 

1. Goods that are considered a direct object of customs offence, means of transport used for the transportation thereof across the customs border, caches created for the purpose of transportation of goods across the customs border, as well as documents necessary for the examination of the proceedings for violations of customs rules shall be taken as prescribed by the Administrative Offences Code of the Republic of Armenia, the Customs Code of the Union and this Law. Taking shall be carried out with the participation of attesting witnesses and, where necessary, also a translator and a specialist.

2. For the purpose of taking goods, means of transport and documents, officials of customs authorities have the right to request to open closed constructions and storages units, whereas in case of failure to fulfil the request — to open and access them independently. The procedure for the access of officials of customs authorities to apartments of natural persons shall be defined by law. All the goods, means of transport and documents taken shall be presented to the participants of the taking, described in detail in the protocol, and sealed upon necessity.

3. Upon the completion of the taking, a relevant protocol shall be drawn up wherein the position and surname of the person drawing it up, the place, time, and circumstances of taking, data confirming the identity of the participants of the taking, number, size, weight, characteristic features and other peculiarities of taken objects shall be specified.

4. The official drawing up the protocol shall be obliged to introduce the protocol to all the participants of the action, who shall sign it after becoming familiar with it and shall have the right to request to include their remarks in the protocol.

5. The carbon copy of the protocol shall be handed over, with signature, to the person in whose presence the action of taking has been.

 

Article 328.

Procedure for submitting goods and means of transport for identification

 

1. Upon the necessity to submit any goods or means of transport for identification, the official of the customs authority, in proceedings conducted whereby the case on customs violation is, shall take an explanation from the identifier in advance regarding the features of that object and the circumstances under which he or she has seen those goods or means of transport. After taking the explanation, the goods or object subject to identification shall be presented to the person identifying it along with other goods or objects of the same type to the extent possible, and he or she shall be offered to point at one of them and explain by what features and peculiarities he or she has identified that object. Identification shall be carried out in the presence of attesting witnesses.

2. A relevant protocol shall be drawn up on the results of identification, wherein the position, name and surname of the person drawing up the protocol, the place, date of submitting for identification, description of the goods or means of transport submitted for identification, by stating in detail the features whereby the identification has been done, as well as the data of the participants shall be specified. All the participants of the action shall sign the protocol. Where photographing, audio-recording and other types of recordings have been made during the action, a relevant note thereon shall be made in the protocol.

3. Persons having participated in the identification shall have the right to request to include their remarks in the protocol.

 

Article 329.

Taking samples or test samples for examination

 

1. During examination of cases on customs offences, the officials of customs authorities shall have the right to take samples or test samples, where the examination thereof is necessary for the examination of the case.

2. A decision on taking samples or test samples shall be rendered, wherein the position, name and surname of the person rendering the decision, from where, in what amount, and what samples or test samples must be taken and other necessary circumstances shall be specified.

3. The official of the customs authority shall perform all the necessary actions and take samples or test samples in the presence of attesting witnesses. The samples (test samples) shall be packed and sealed, except for documents.

4. A relevant protocol shall be drawn up on taking samples or test samples, wherein all the performed actions, applied methods and means, as well as the types of samples or test samples taken shall be specified.

 

Article 330.

Conducting an expert examination

 

1. Where special professional knowledge is required in order to establish circumstances essential for cases on violation of customs rules, the official conducting the proceedings shall assign an expert examination.

2. A decision on conducting an expert examination shall be rendered, wherein the grounds for assigning the expert examination, material evidence and other objects sent for expert examination shall be specified, at the same time indicating the circumstances under which they have been detected or obtained, the name of the institution to which the expert examination is assigned and the questions posed to the expert.

3. The official assigning the expert examination shall explain to the expert his or her rights and responsibilities provided for by law.

4. The expert shall be obliged to issue a substantiated and objective opinion on the questions posed to him or her, and where necessary, to appear upon the request of the customs authorities with regard to the circumstances emerged in the course of conducting the expert examination and to give explanations regarding the content of the expert opinion.

 

Article 331.

Evaluation of taken goods and objects

 

1. The customs authority shall evaluate the goods taken in accordance with Article 327 of this Law based on the current prices in the Republic of Armenia, and in case of absence of information thereon — based on the expert opinion.

2. The recalculation of the taken foreign currency into the Armenian dram shall be made by the customs authority by the exchange rates published by the Central Bank of the Republic of Armenia as of the day of detection of the customs offence.

 

Article 332.

Participation of a person being subjected to liability in the examination of a case on violations of customs rules

 

1. A case on violations of customs rules shall be examined with the participation of the person being subjected to liability or in the absence of that person in cases prescribed by Article 267 of the Administrative Offences Code of the Republic of Armenia.

2. The case on violations of customs rules may be examined in the absence of the person specified in part 1 of this Article, where the person is absent and his or her place is unknown, or where he or she is outside the state borders of the Republic of Armenia.

3. Examination of the case may be conducted through the means of telecommunications based on the written application of the person having violated customs rules, the results whereof shall be summarised under the protocol drawn up by the official conducting the examination of the case. In case of technical possibility of recording the examination of the case, the recording shall be attached to the protocol.

(Article 332 supplemented by HO-386-N of 24 October 2024)

(Law HO-386-N of 24 October 2024 contains a transitional provision)

 

Article 333.

Impermissibility to disclose materials of cases on violations of customs rules

 

1. Details of cases on violations of customs rules may be disclosed fully or partially only upon the permission of the person examining the given case.

2. Upon necessity, the official of the customs authority shall warn the persons having relation to the case of the impermissibility to disclose the details of the case without his or her consent and the liability provided for by law for it.

 

Article 334.

Decisions of the customs authority on cases on violations of customs rules

 

1. Upon examining the case on violations of customs rules, the official of the customs authority shall render one of the following decisions:

(1) imposing an administrative penalty;

(2) dismissing the case proceedings.

2. The decision specified in part 1 of this Article shall include the position, name, surname of the person rendering it, the date of rendering the decision, information on the person with regard whereto the case has been examined, and where that person is identified — the statement of the circumstances that have been revealed while examining the case, indication of the article of the Customs Code of the Union and this Law which provides for liability for violation of customs rules, the decision rendered with regard to the case, and the time limit and procedure for appealing the decision. The decision shall enter into force from the moment of rendering it.

3. Within three working days after rendering the decision specified in part 1 of this Article, the carbon copy thereof shall be handed over or sent to the person with regard whereto it has been rendered. Where the person to whom the decision specified in part 1 of this Article has been sent was not found at the place of residence, location or temporary location specified by him or her or did not specify the location address correctly, the given decision shall be published on the official website for public notifications of the Republic of Armenia, whereof the person shall be notified via his or her electronic mail available at the customs authority.

4. The decision of the customs authorities on imposing an administrative penalty may be appealed as prescribed by Article 37 of the Law "On customs service" or through judicial procedure.

 

Article 335.

Time limit for returning taken goods

 

1. The person wherefrom goods have been taken for the purpose of securing charging of fine, customs fees and other fees subject to payment to the customs authorities as prescribed by Article 327 of this Law may receive them within one working day after the payment of the fine, discharge of obligations with regard to customs fees and other fees subject to payment to the customs authorities.

 

Article 336.

Rights and responsibilities of the person being subjected to liability for violations of customs rules

 

1. The person being subjected to liability for violation of customs rules shall have the rights prescribed by Article 267 of the Administrative Offences Code of the Republic of Armenia from the moment of initiating proceedings against him or her, as well as shall have the right to receive explanations on his or her rights during the proceedings from the body conducting the proceedings, to object to the actions of the body conducting the proceedings and to request to include his or her objections in the protocol, to seek recusals, become familiar with the minutes of the session in which he or she has participated or been present at, submit remarks with regard to the accuracy and completeness of the records in protocols, request to make records in the protocol on the circumstances which, in his or her opinion, must be specified.

2. The person being subjected to liability for an offence in the customs sector shall be obliged to fulfil the lawful demands of the official conducting the proceedings, and not to impede the conduct of the proceedings.

 

SECTION 10

 

FINAL PART AND TRANSITIONAL PROVISIONS

 

CHAPTER 60

 

FINAL PART AND TRANSITIONAL PROVISIONS

 

Article 337.

Entry into force of this Law

 

1. This Law shall enter into force on the tenth day following the day of its official promulgation

2. From the day of the entry into force of this Law, the following shall be repealed:

(1) Law No HO-241-N of 17 December 2014 "On customs regulation";

(2) Section 13 of the Customs Code of the Republic of Armenia of 6 July 2000.

 

Article 338.

Transitional provisions

 

1. The legal acts of the Republic of Armenia related to the customs legislation, adopted before the entry into force of this Law, shall continue to be effective after the entry into force of this Law with respect to the part compliant with and not contradicting the Customs Code of the Union and this Law until repealing them or bringing them in full compliance with the Customs Code of the Union and this Law.

2. The system of advance payments prescribed by Article 42 of this Law may be put into operation, and those advance payments and the amounts of customs duty paid in excess, prescribed by part 2 of Article 55 of this Law, may be channelled to the discharge of obligations with respect to customs fees (except for customs duties) after the introduction of the relevant software.

3. Refund of the amounts of the customs duty, taxes, special, anti-dumping and compensation duties paid or charged in excess, prescribed by Article 55 of this Law, shall be made, where:

(1) those amounts have arisen before the entry into force of this Law, and where the time limit prescribed for submitting an application for refund thereof under the Law "On customs regulation" effective until that day has not expired as of the day of the entry into force of this Law;

(2) those amounts have arisen after the entry into force of this Law.

4. Until the entry into force of the Decision of the Commission provided for by point 4 of Article 210 of the Customs Code of the Union, which will prescribe the list of conditions, production and technological operations deemed to be sufficient for declaring the goods made of (made from) foreign goods placed the customs procedure "Free customs zone" as goods of the Union, the sufficient processing standards prescribed by this Law shall be applied in the Republic of Armenia for the purpose of declaring the goods made of (made from) foreign goods placed under the customs procedure "Free customs zone" as goods of the Union.

5. Until the establishment of a customs authority having the competence to conduct customs examination by the customs authorities in accordance with part 2 of Article 236 of this Law, customs examinations shall be conducted by organisations conducting customs examinations, accredited by the customs authority, based on a contract being concluded in the form prescribed by the Committee between the head of the customs authority and relevant organisations conducting examinations. The procedure for accreditation of organisations conducting customs examinations, prescribed by this part, shall be established by the Government.

6. For the purpose of enforcing the powers vested in the national legislation of the Republic of Armenia by international treaties concluded within the scope of the Union and/or legal acts adopted by the Commission in the customs regulation sector, the Government may adopt decisions, unless otherwise provided for by the laws of the Republic of Armenia regulating the sector of customs regulations.

7. Cases on violations of customs rules committed before the entry into force of this Law shall be examined in accordance with the provisions of Section 13 of the Customs Code of the Republic of Armenia of 6 July 2000.

8. Part 9corr. of Article 174 of this Law shall be applied as long as the norms prescribed by the Commission exceed the amount equivalent to AMD 200 000.

9. The regulations prescribed by part 5 of Article 316 of this Law shall extend to the relations having arisen from 1 January 2022.

10. The procedure for the implementation of pilot projects preceding the legislative amendments, provided for by the customs legislation of the Union and of the Republic of Armenia, shall be defined by the Government.

11. The regulatory legal acts prescribed by this Law shall be adopted within one year after the entry into force of this Law.

 

President of the Republic	V. Khachaturyan
7 October 2022 Yerevan HO-353-N

 

Published on a joint site 14.04.2025