RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/ARM/1/Rev.8 
13 November 2002 
 (02-6309) 
Working Party on the 
Accession of Armenia  
 
 
DRAFT REPORT OF THE WORKING PARTY 
ON THE ACCESSION OF THE REPUBLIC OF ARMENIA 
Revision  
I. Introduction 
1. At its meeting on 17 December 1993, the Council of Representatives established a Working 
Party to examine the application of the Government  of Armenia to accede to the General Agreement 
on Tariffs and Trade (GATT 1947) under Article  XXXIII, and to submit to the Council 
recommendations which might include a draft Protocol of Accession.  In a communication dated 
31 January 1995 (WT/L/25), the Government of Armenia applied for accession to the Agreement 
Establishing the World Trade Organization (WTO) pur suant to Article XII of the WTO Agreement. 
Following Armenia's application a nd having regard to the Decision adopted by the General Council 
on 31 January 1995 (WT/GC/M/1),  the Working Party on the Accession of Armenia to the GATT 
1947 was transformed into a WTO Accession Working Pa rty.  The terms of reference of the Working 
Party were also contained in document WT/L/25. 
2. The Working Party met on 24 January and 23-24 September 1996, 14 May 1997, 24 June 
1999 [and ...] under the Chairmanship of H.E. Mr. D. Kenyon (Australia). 
Information 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Armenia (WT/ACC/AR M/1), and the questions submitted by Members on 
the Armenian foreign trade regime together with  the replies of the Armenian authorities thereto 
(WT/ACC/ARM/2 and Corr.1;  WT/ACC/ARM/5;   and WT/ACC/ARM/8).  In addition the 
representative of Armenian made available to  the Working Party the following material: 
- The Customs Code of the Republic  of Armenia of 1 January 2001; 
- Decree of the Government of the Republic of  Armenia No. 40 of 13 February 1993, "Additional 
Measures on State Regulation of In ternational Economic Activities"; 
- Resolution No. 31 of 21 February 1995, "On Regulation Regarding the Establishment, 
Registration, Licence and Suspension of Activitie s of Banks and Their Branches and Agencies 
and Those of Foreign Banks Opera ting in the Republic of Armenia” WT/ACC/SPEC/ARM/1/Rev.8 
Page 2  
 
- Law on Amendments and Additions to the Republic of Armenia Law on the "Value-Added 
Tax" of 10 December 1994; 
- Law of the Republic of Armenia on Property Tax; - Law on Making Amendments in the Repub lic of Armenia Law on Excise Tax of 
30 November 1994; 
- Law on Pledge Collateral; 
- Law on Bankruptcy of Enterprises and Indi vidual Entrepreneurs of 15 June 1995; 
- Law on Making Amendments in the Republic  of Armenia Law on Corporation Tax of 
19 December 1994; 
- Law on Standardization of 9 December 1999; 
- Law on Conformity Asse ssment of 9 December 1999; 
- Law on Patents of 21 August 1993; - Law on Income Tax of 8 February 1995; - Law on Land Tax of 27 April 1994; - Law on State Agrarian Inspections; 
- Statute of the Peasant and Collec tive Peasant Farms of 22 January 1991; 
- The Land Code of 29 January 1991; - Supreme Council Resolution on the Maximum Sizes of the Land Lots in Property of the Peasant 
and Peasant Collective Farms; 
- Resolution No. 581 of 16 December 1994, “On Co rroboration of the Tem porary Regulations for 
Auditing Activities in the Republic of Armenia”; 
- Government Decision of 17 January 1995, "O n the Procedure of Granting Licenses for 
Importation and Exportation of Goods (Works , Services) in the Republic of Armenia"; 
- Government Resolution No. 67 of 8 February  1995, "On the State Procurement Order of 1995 
of the Republic of Armenia"; 
- Government Resolution No. 4 of 19 Augus t 1995, "On Confirmation of the Temporary 
Regulations for Trademarks and Service Marks"; 
- Government Resolution No. 606 of 29 Decembe r 1994, "On Rates of  the Exci se Tax"; 
- Government Resolution No. 88 of 23 February  1994, "On the Order of Submitting Statistical 
Reports Regarding the Importation and Exportati on of Services in the Republic of Armenia"; 
- Council of Ministers Resolution No. 161 of 5 Ma rch 1991, "On the Order of Exercising Diverse 
Types of Economic Activities on the Te rritory of the Republic of Armenia"; 
- Decree of the Government of the Republic  of Armenia No. 124 of 29 December 1995 On 
Non-Tariff Regula tion of the Commodities (Operations, Services) Import and Export in the 
Republic of Armenia; 
- Statement of the Central Bank of  the Republic of Armenia on Jo ining to Article VIII of the IMF 
Agreement.; 
- The Law of the Republic of Armenia of 30 June 1996, "O n Central Bank of Armenia"; 
- The Law of the Republic of  Armenia of 30 June 1996, "On Banks and Banking"; 
- The Law of the Republic of  Armenia of 10 June 1996, "On Bankruptcy of Banks"; 
- Decree of the Government of the Repub lic of Armenia No. 124 of 29 December 1995, "On 
Non-Tariff Regula tion of the Commodities (Operations, Services) Import and Export in the 
Republic of Armenia"; 
- Amendments to the Law, "On Privatization a nd Denationalization of St ate-Owned Enterprises 
and Unfinished Construction Sites"; 
- List 2 of the Resolution of the Government of the Republic of Armenia No. 415 of 1995,"On 
types of Activities that are Subject to Licensing in the Territory of the Republic of Armenia"; 
- Statute of the Ministry of Economy of the Re public of Armenia of 20 June 1996, "On Issuing 
Inferences on Minimal Pricing of Exports of Pr oducts from Ferrous and Non-ferrous Metals not 
Produced in Armenia, as  well as their Scrap"; 
- Statute of the Ministry of He alth of the Republic of Armeni a of 20 June 1996, "On Issuing 
Inferences on Import and Export of Pharmaceuticals into and from the Republic of Armenia";  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 3 
 
 
- Statute of the Ministry of Environment Prot ection and Mineral Resources of the Republic of 
Armenia of 20 June 1996, "On Issuing Inferences on Export of  Wild Animals and Plants 
Included in the Red Book (Endangered Specie s Listing) of the Republic of Armenia"; 
- Statute of the Ministry of Agriculture and F ood of the Republic of Armenia of 20 June 1996 On 
Issuing Inferences on Import of  Plant Protection Agents into the Republic of Armenia. 
- Decree of the Ministry of Health of the Republ ic of Armenia, "On Regul ation of Pharmaceutical 
Activity and Ensuring the Quality of Drugs and Medical Facilities"; 
- Programme of the Government of the Republic  of Armenia, "On Pr ivatization of State 
Enterprises and Unfinished Construction sites of the Republic of Armenia for 1996-1997";  and 
- Amendment of 1 May 1996 to Annex N 1 to Decr ee of the Government of the Republic of 
Armenia No. 615 of 6 December 1993, "On Determining the Cu stoms Duties"; 
- Law of the Republic of Armenia "On Customs Duties" of 30 December 1998; 
- Law of the Republic of Armenia "On Customs User Fees of 30 December 1998; 
- Decree of the Government of Armenia "To Defi ne the Rules for Determining the Country of 
Origin of Goods"; 
- Civil Code of the Republic of Armenia of 5 May 1998; 
- Civil Procedure Code of 20 January 1998; 
- Criminal Procedure Code of 20 January 1998; 
- Law of the Republic of Armenia "On Trade Names" of 12 May 1997; 
- Law of the Republic of Armenia "On Trade and Service Marks and Appellations of Origin of 
Goods"; 
- Patent Law of 21 August 1993; 
- Law of the Republic of Armenia "On Copyrigh t and Neighbouring Rights" of 27 May 1996; 
- Draft Law of the Republic of Armenia "Protection of Secret Information"; 
- Draft Law of the Republic of Armenia "On Protection of Selection Achievements"; 
- Law of the Republic of Armenia "On Legal Protection of Topographies of Integrated 
Circuits" of 3 February 1998; 
- Draft Proposals on the Amendments in the Armenian Law on Patents Dealing with the 
Provisions of the WTO Component Agreement TRIPS; 
- Regulation "On Importation of Goods Subject to Ce rtification in the Republic of Armenia into 
the Customs Territory of the Republic of Armenia" of 16 January 1998; 
- Decree No. 15 of the Government of the Republic  of Armenia "On Compulsory Certification 
of Goods and Services in the Republic of Armenia" of 16 January 1998; 
- Regulation "On Application of Certificate of  Compliance when Realising and Advertising 
(Rendering Services) the Certifie d Goods Subject to Compulsory Certification in the Republic 
of Armenia" of 16 January 1998; 
- Regulation "On Fees for the Compulsory Certification in the Republic of Armenia" of 
16 January 1998; 
- Decree No. 171 of the Republic of Armenia "On Establishment of Agrarian Regulations" of 
11 March 1998; 
- List of Toxic and Biological Means Permitted for the Use in the Republic of Armenia to 
Struggle Against Pests, Diseases and Weeds of Ag ricultural Cultivated Plants, Forestry and 
Ornamental Plants; 
- List of Quarantine Pests, Diseases of Plants  and Weeds for the Republic of Armenia; 
- List of Quarantine Plants, Food, Seeds and Seedlings of Plant Origin for Quarantine 
Protection Purposes; 
- Law of the Republic of Armenia "On Agrarian State Inspections" of 15 May 1996; 
- Regulation "On Cooperation Between the Customs Authorities, Border Veterinary Inspection 
Stations and State Plant Quarantine Services of the Republic of Armenia" of 27 January 1998; 
- Law of the Republic of Armenia  "On Plant Protection and Plant Quarantine" of 
20 March 2000; 
- Law of the Republic of Armenia "O n Veterinary" of 26 October 1999; WT/ACC/SPEC/ARM/1/Rev.8 
Page 4  
 
- Government Decree No. 26 of the Republic of  Armenia "On the Measures to Ensure the 
Implementation of the Separate Articles of the Laws of the Republic of Armenia on 
"Standardization and Certificati on"  and the "Uniformity of Measures" of 20 January 1998; 
- Decree of the Government of Armenia No. 26 "Procedure on the Implementation of State 
Metrology Control Over the Quantity of Withdrawn Commodities" 20 January 1998;  
- Government Decree No. 29 of 11 January 2000 on  Preparation, Adoption and Application of 
Technical Regulations; 
- Law on Taxes, adopted by the National Assemb ly of the Republic of Armenia, on 14 April 
1997; 
- Law on Excise Tax effective 1 August 2000; 
- Law on Simplified Tax effective 5 June 2000; 
- Government Decree No. 913 of 31 December 2000; 
- Law on Amendment to the Customs Code of th e Republic of Armenia of 26 December 2000; 
- Draft Law on Land Tax;   
- Draft Law on Antidumping and Countervailing Measures;  
- Draft Law on State Registration of Legal Persons;  
- Law on Medicines; 
- Law on Licensing (May 30, 2001); 
- Law on State Registration of Legal Entities (April 26, 2001); 
- Resolution 239 of 12 May 2000, with amendments 
- Government Resolution 581 of 20 September 2000;  
- Draft Law on Making Amendments and Additions to the Customs Code; 
- Draft Law on Making Changes and Amendments in the "Criminal Code" of the Republic of 
Armenia; 
- Draft Law on Making Changes and Amendments in the Law of the Republic of Armenia on 
"Copyright and Neighbouring Rights"; 
- Draft Law on Making Amendments in the Law of the Republic of Ar menia on "Value Added 
Tax"; and 
- Draft Law on Making Amendments in the Law of  the Republic of Armenia on "Excise Tax". 
 
Introductory statements 
4. In an introductory statement, the represen tative of Armenia said that since declaring 
independence from the former Soviet Union in 199 1, Armenia had vigorously pursued free market 
reforms within a democratic fra mework, notwithstanding acute political and economic difficulties.  
Economic decline had been reflected in sharp reduc tions in output, falling incomes, reduced trade 
flows, severe shortages of energy, and scarcity of food and other consumer goods.  Despite this 
adversity, the Government had persevered with the economic reform programme, placing particular 
emphasis on liberalization, stabilization, and econo mic restructuring.  Most agricultural land was 
privatized shortly after inde pendence and privatization in other sectors was moving ahead.  
Demonopolization and deregulation had removed barrier s to private sector participation in all but a 
few areas of economic activity.  Price controls we re only applied to a limited number of essential 
goods and services, and were being phased out.  Foreign investment was encouraged.   
5. He further added that on the macroeconomic side, stabilization policy was a government 
priority, given the challenge of the difficult budgetary  position, combined with the need to contain 
inflationary pressures and maintain exchange ra te stability.  The Government had successfully  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 5 
 
 
brought monthly inflation down to a single digit level,  from the triple-digit levels prevailing at the end 
of 1993.  By the end of 1997 the annual inflation wa s 21.9 per cent, and annual inflation for 1998 2.9 
per cent, for year 1999 6 per cent, for year 2000 0.8 per cent and for year 2001 2.9 per cent.  The 
Government was strongly committed to securing a sound and stable macroeconomic framework for 
future economic growth and development.  Fuller in tegration into the world economy, and continuing 
diversification of Armenia's economic relations with  other countries, were central planks of the 
Government's reform efforts.  The Government of Armenia believed that these objectives could only 
be attained through open trade policies that empha sized specialization on the basis of international 
comparative advantage.  It was for this reason that the Government of Armenia attached priority to its 
accession to the World Trade Organization, and wished  to complete negotiations for membership at 
the earliest opportunity. 
6. The Working Party welcomed Armenia's application for accession to the Agreement 
Establishing the WTO.  Several members of th e Working Party acknowledged that Armenia had 
undergone a rapid process concerning reform and trad e liberalization which, notwithstanding internal 
and external difficulties, appeared to be succe eding in permitting economic growth.  These members 
expressed support for Armenia's integration into the multilateral trading system and indicated their 
readiness to pursue the negotiations in earnest. 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
- Foreign exchange and payments 7. In response to questions from members of th e Working Party concerning Armenia’s foreign 
exchange reserves and the convertibility of the Dram, the representative of Arme nia stated that gross 
official reserves made up US$ 330 million by the en d of 2000 and covered about  4 months of imports. 
Gross official reserves had risen from 0.7 months of  import cover in 1994 to 2.3 months in 1996, 2.7 
months in 1997 and 3 months in 1998.  On 29 May 1997, Armenia accepted the obligations of Article 
VIII of the International Monetary Fund's Agreemen t, Sections 2, 3 and 4, and has committed to 
refrain from imposing restrictions on the making of payments and transfers for current international 
transactions, and from engaging in discriminator y currency arrangements or multiple currency 
practices without IMF approval. According to  R esolution No. 141 "On Foreign Exchange Regulation 
and Administration of Control", there were no rest rictions on current account  operations. After being 
licensed by the Central Bank natural persons and legal entities were allowed to act as foreign 
exchange dealers. The Central Bank of Armenia (CBA) determined the daily exchange rate as a 
midpoint of the previous day’s buying and sellin g operations in foreign exchange market (the 
participants of foreign exchange market are those dealing with over-the-counter market, stock WT/ACC/SPEC/ARM/1/Rev.8 
Page 6  
 
exchanges, foreign exchange bureaus, etc.). Forei gn exchange dealers (including banks) were free to 
establish their own exchange rates for transactions . Non-resident banks could be authorized to 
participate in the domestic foreign exchange mark et on conditions equal to those set for resident 
banks. Legal entities and natural pe rsons, residents and non-resident s of Armenia could open and hold 
their current accounts in foreign banks without any restrictions.  Residents of Armenia could undertake  movement of capital without any rest rictions unless otherwise specified by CBA. Non-
residents could undertake the  movement of capital according to the "Law on Foreign Investments" of 
the Republic of Armenia.  All bilateral clearing arrangements based on barter had been eliminated. 
- Income Tax 
8. The representative of Armenia stated that accord ing to the Law on Income Tax, which entered 
into force on 1 January 1998, personal income tax w as determined on the basis of the amount of the 
taxpayer’s income earned during the reporting peri od. In determining the taxable income the 
following deductions could be made from a gro ss income: deductible income, personal deductions, 
and expenses. Gross income was deducted by Dram  20,000 for each month during which an income 
was earned.  The income tax rates were as follows: 
Monthly taxable income Amount of income tax 
Less than Dram 80,000  10 per cent of taxable income 
More than Dram 80,000 Dram 8,000 added to 20 per cent of total income 
exceeding Dram 80,000 
 
Annual taxable income Amount of income tax 
Less than Dram 960,000  10 per cent of taxable income 
More than Dram 960,000 Dram 96,000 added to 20 per cent of total  income 
exceeding Dram 960,000 
 
He further added that the rate of income tax for in come received from royalties, payments of interest 
and property rent was 10 per cent.  The following cat egories of receipts were exempt income for tax 
considerations: social security allowances under Ar menian legislation, lump-sum allowances to 
families of military servicemen killed or handicapped,  alimony payments, earnings of individuals for 
donations of  blood and pectoral milk or for othe r type of donor activities, as well as income from 
agricultural activities. 
- Land Tax 
9. The representative of Armenia stated, that a  land tax was imposed on private landowners and 
users of State owned land. The land tax was calculated   as an annual fixed charge for a land plot unit.  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 7 
 
 
For agricultural land the land tax rate was set at 15 per cent of calculated net income determined by 
the estimated fiscal value of the land, and for the land for non-agricultural usage the land tax rate was 
established at 1 per cent of the estimated fiscal l valu e of the land (0.5 per cent if outside residential 
area). In order to promote the development of plan t-raising, newly established and immature orchards 
and vineyards were exempted from payment of la nd tax.  In the event of adverse agricultural 
circumstances,  the Government, with the consent of  the National Assembly of Armenia, could  grant 
certain tax exemptions to some taxpayers or to groups of taxpayers.  In a new Draft of the Law on 
Land Tax, which was submitted to th e National Assembly of Armenia, the property character of the 
tax was accentuated, and tax calcu lation methods were simplified. In  particular, for both agricultural 
and non-agricultural land plots the amount of tax woul d be calculated based on their value, and that 
value would be determined according to the same Law. 
- Profit Tax 
10. The representative of Armenia stated that  the new Law on Profit Tax, which entered into 
force on 1 January 1998, introduced a profit tax  on residents and non-residents.   For residents the profit tax was charged on taxable profit earned  in  Armenia and abroad. For non-residents the profit 
tax was charged on taxable profit earned from Armenian  sources.  For residents the amount of profit 
tax charged on taxable profit was determined at a rated of 20 per cent.  The following types of 
revenues were included in Armenian taxable in come of non-residents from Armenian sources: 
- income derived from entrepreneurial activ ities within the Republic of Armenia; 
- passive income earned  by non-residents from residents or non-residents; and 
- other income obtained by non-residents within the Republic of Armenia. 
The tax charged on income obtained by non-residents from the Armenian sources was levied 
according to the following rates: 
Type of Income: Profit tax rate 
  
Insurance offsets received as a result of insu rance; payments received for reinsurance, 
incomes received from shipment (freight) 5 per cent 
Dividends, Royalties; income received from property rent; property value increment and 
other passive income (except income received from shipment (freight)), as well as other 
income received from Armenian sources, Interest 10 per cent 
 
Taxpayers engaged in the production of agricultu ral products were exempted from the profit tax 
payments.   Since 1 January 1998, Armenian resident statutory funds with foreign investments of 
greater than 500 million Drams had been permitted to reduce their profit tax as follows:   WT/ACC/SPEC/ARM/1/Rev.8 
Page 8  
 
Proportion of profit tax reductions  from the tax liability of the 
resident enterprise with foreign investment, allowed for the 
respective years Year when the established investment 
benchmark in the statutory fund of a 
resident enterprises would be fulfilled 100 per cent 50 per cent 
1998 1999 and 2000 2001-2008 inclusive 
1999 2000 and 2001 2002-2009 inclusive 
2000 2001 and 2002 2003-2008 inclusive 
2001 2002 and 2003 2004-2007 inclusive 
2002 2003 and 2004 2005-2006 inclusive 
2003 2004 and 2005  
2004 2005 and 2006  
2005 2006 and 2007  
2006 2007 and 2008  
2007 2008 and 2009  
 
If the taxpayer’s ceased operations during the  peri od of tax reduction, the amount of the profit tax  
would be calculated at the full rate fo r the entire period of economic activity. 
- Simplified tax 
11. The representative of Armenia said that according to the Law on Simplified Tax, which 
entered into force on 5 June 2000, simplified tax replaced VAT and Profit Tax or Income Tax (as 
applicable)  for entrepreneurial activities. All entrep reneurs, whether Armenian or foreign in origin 
were subjected equally to the tax.  For legal pe rsons simplified tax substituted for VAT and Profit 
Tax.  For individual entrepreneurs simplified tax substituted for VAT and Inco me Tax.  Tax privileges 
for VAT and Profit or Income Tax  had been terminat ed for taxpayers covered by simplified tax.  All 
legal persons and individual entrepreneurs were liable to simplified tax if during the previous 
reporting year the total amount of turnover of  goods supplied and services rendered had not exceeded 
AMD 30 million (exclusive of VAT).  Trade and pu blic catering activities carried out in shops and 
counters (retail shops, market stall vendors, restaurants,  snack bars and the like) are not subject to the 
tax threshold, and are therefore liable to simplif ied tax notwithstanding the total annual amount of 
turnover.  He further noted that the legal persons and individual entrepreneurs to whom simplified tax 
applied in 2001 amounted to 0.8 per cent of GDP.   The following taxpayers were not subject to 
simplified tax: 
- Producers of goods subject to excise tax; 
- Taxpayers with outstanding liabilities (incl uding fines and penalties envisaged by Tax 
legislation) exceeding 100 thousand Drams as at 1 January of the relevant year; 
- Loan and insurance companies, investment funds, specialized parties of stock market, 
organizers of casinos, cash winning games or lotteries, persons carrying out audits or 
consulting services, etc.; 
- Presumptive taxpayers within the definition of the  law "On Presumptive Payments";  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 9 
 
 
- Taxpayers holding any remaining goods im ported under a "for free circulation" 
customs regime, (non VAT taxable at the mo ment of import and not sold within the 
previous year) the value of which exceeded 1 million Drams; 
- Those entities which ceased to be  considered as that prior to 31 December inclusive 
of that year; 
- Producers of agricultural products. 
He further added that the simplified tax base was the sale turnover of goods supplied and services of  
taxpayers during the reporting quarter 
For trading activities other than sales by shops and counters, the tax was determined on sales turnover 
at the following rates: 
- 8 per cent for the amount under AMD 30 million; 
- 13 per cent for the amount over AMD 30 million. 
The tax rate for income from sales by shops  and counters was at the following rates: 
 a) For the amount up to 30 million Drams – 5 per cent; 
 b) For the amount exceeding 30 million Drams – 7 per cent. 
For the purpose of the simplified tax expression trad e covered the activities carried out in shops and 
counters without any distinction be tween domestic or imported goods. 
- Property tax 
12. The representative of Armenia stated  that the property tax was a direct tax levied on all 
buildings and vehicles belonging to natural and lega l entities.    The calculation of the tax levied on 
buildings was based on their value (determined pursu ant to the  Law on Property Tax).  Taxation of 
vehicles was determined based on the power output  of  its engine and age of the vehicle. Buildings 
were revalued  every three years.  If  the value of a residential building was less than 3 million Dram, 
it was exempted from property tax.  If a residen tial buildings had a value above 3 million Dram, the 
tax rates were set according to a  scale, varying between  0.1-0.8 per cent.  
13. The representative of Armenia stated that in accordance with the Law on Property Tax, the 
property tax levied on buildings for public and production usage was established at 0.6 per cent of 
their value.  
The property tax for motor transport vehicles was levied according to the following annual rates: 
For passenger vehicles with up to ten seats:   if the tax base (engine power is): 
- less than 120 horsepower/88 kilowa tts:  200 Drams per horsepower/ 272 
Drams per kilowatt; WT/ACC/SPEC/ARM/1/Rev.8 
Page 10  
 
- 120-250 horsepower/88-184kilowatts:  then 300 Drams for each horsepower 
or 408 Drams for each kilowatt. 
For passenger vehicles with over ten seats and tr ucks:  if the tax base (engine power) is: 
- less than 200 horsepower/147kilowatts:  100 Drams for each horsepower/136 
Drams per kilowatt; 
- Over 200 horsepower/147kilowatts:  200 Drams per horsepower/ 272 Drams 
per kilowatt. 
- State ownership and privatization 
14. In response to requests for information concerni ng the privatization of State owned assets, the 
representative of Armenia stated that the process of privatization had started  in Armenia in  1991, 
when Government Decision No. 335 had permitted sm all enterprises in the sphere of public utilities, 
catering, trade and other services to be privatized . The Law on Privatization and Denationalization of 
Enterprises and Unfinished Construction Sites, adopted  in 1992, was the legal basis for all subsequent 
privatization. He further added that by 1 January 2002 the Government of Armenia had adopted 2,067 
decrees concerning the privatization of comp anies (including 170 decrees on dissolution of 
enterprises).  The national Assembly of the Repub lic of Armenia had adopt ed Laws on Armenia's 
Privatization Program.  
15. The representative of Armenia noted that five privatization programs adopted by the National 
Assembly had been undertaken sin ce the beginning of the privatiza tion process in Armenia. The first 
two privatization programs were covered the years (1994 and 1995 respectively.  They were followed 
by the adoption of the 1996-1997 and 1998-2000 priv atization programs.  Those privatization 
programs included most companies in the fields of industry, agriculture and transport as well as all 
"small enterprises" (in the sphere of  public utilities,  catering, trade and other services) and unfinished 
construction sites.  The current Privatization Program of State Assets for the for the period 2001-2003, was adopted by the National Assembly on 27 July 2 001.  It incorporated all enterprises intended to 
have been privatised under earlier programs. He furt her noted that foreign le gal and natural persons 
were free to participate in the privatization of any state assets.  
16. In response to further requests for information th e representative of Armenia noted that up to  
1 January 2002  1,643 medium and large enterprise s had been privatised.  Of those 1,081 had been 
privatised through the open subscription of shares, 62 through share auctions, 134  employee buy out,  
102 through tenders, 20 through auctions, and 377  thr ough direct sales, of which 200 to lessees.  The 
most common form of privatisation was the open sub scription of shares (65.8 per cent of privatized 
entities). Thirty six  companies, the privatization of  which failed, were dissolved, although a total of  
367 enterprises' privatizations had failed, mainly because of high prices, poor business prospects and  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 11 
 
 
heavy indebtedness.  The representative of Armenia noted that, for the year 2001, approximately 80 
per cent of GNP could be attributed to the private sector, and approximately 20 per cent of GNP to the 
State-owned sector.  The proportion attributed to the State-owned sector had been declining steadily 
over the previous few years and this trend was expe cted to continue.  The representative of Armenia 
noted further that the State-owned sector accounted (by value) for only 8.4 per cent of imports and 5.7 per cent of exports in 2001. 
17. In response to requests for further informa tion on the sale of privatised enterprises to 
foreigners, the representative of Armenia noted that the following enterprises privatized through 
international tenders:  "Armentel" State Enterprise, Yerevan Brandy plant, Hotel "Armenia" and Hotel 
"Ani" (during the privatization of which there was an  international mediator).  The privatization or 
transfer of the management rights of the State power, production and distribution network, "Nairit" 
Scientific-Research Union, as well as "Armenian Ai rlines" Company was anticipated.  In the energy 
sector eleven hydro-electric power stations had been already privatized, two of had been purchased by  
foreign persons.  The Armenian network of ga s distribution was privatized, resulting in the 
establishment of "ArmRusGasArd" CSC. In 2001  the strategic enterprises of "Almast" CJSC, 
"Sapfire" JSC,  "Tranzistor" and "Hrazdan Cement" we re privatized, one of which to a foreign entity.   
18. In response to further requests for information, the representative of Armenia stated that since 
1999, privatisation in Armenia had focussed on a ttracting of strategic investors, as well as 
encouraging minority shareholdings in  privatized co mpanies.   The government continued to seek to  
create new jobs and development social programs in privatized enterprises.    To achieve this  shares 
were privatized by tender, the terms of which reflected other development factors as well as the price. 
19. Some members of the Working Party enquired whether any sectors were excluded from 
privatization.  In response, the representative of Armenia stated that according to the “Privatization 
program for  2001-2003” enterprises of the followi ng sectors were not subject to privatization: 
- civil defence and mobilization establishments, military structures; 
- minting, state decorations, seals and stamps producing enterprises; 
- basic research institutions; 
- institutions engaged in fundamen tal research investigations; 
- geologic, cartographic, geodesic, hydrometereological enterprises, enterprises 
exercising control over conditions and pr otection of environmental and natural 
resources; 
- state strategic reserves and storage facilities; 
- enterprises providing sanitary-epidemiological services; 
- standardization and metrology services; 
- railways, public highways, Yerevan metro, security services for railway and air 
traffic, army motorcades; 
- enterprises producing radioactive materi als (and appliances for them) as well as 
enterprises involved in research and constructing activities in this area; WT/ACC/SPEC/ARM/1/Rev.8 
Page 12  
 
- reformatories and corrective labour establishments; 
- secondary educational institutions of the Republic of Armenia. 
He further added that  units generally subject to the Privatization could  not be privatized if they are 
located in:  
- engineering - technical buildings, trans port structure (bridges, tunnels, dams, 
undergrounds and etc.) or similar areas, such as railways, social sphere units (schools, 
institutes, cultural units, etc.);  
- defense and security units.  
He noted, however that enterprises excluded from pr ivatisation represented only  8 per cent of GDP.  
  WT/ACC/SPEC/ARM/1/Rev.8
 Page 13Table 1 (a) Privatised enterprises in the period 1994-2002 
Privatized Not privatized Type of Privatization 
Total In 2001 Industry 
and TradeAgricultureUrban 
Constructio
n Culture Energy Transport & 
Communi-
cation State Property 
Management Health Information & 
Typography Others In 
preparation 
Process Total In 2001 
Direct Sale 377 48 144 67 40 17 8 24 25 15 5 32 17 13  
   of which to lessees 200 10 81 29 30 11 7 9 1 8 1 23 3  
Tender 102 21 20 24 18 9 9 15 1 6 14 136 48 
Auction 20 1 9 10 1 4 18 10 
Share Auction 62  26 27 6 1 2 3  
Shares Open Subscription 1081 20 395 344 186 30 15 46 14 1 30 20 43 196 15 
In Specialized Markets 1  1 1  
New Stock Issue     
Total 1643 90 594 472 250 47 32 82 54 17 37 58 78 367 73 
Liquidation 
Government Decision 137 26 25 29 37 - 3 6 17 8 1 11  
Dissolved 49 21 12 7 6 - 1 2 15 1 - 5  
In the Process of Bankruptcy 52 17 10 8 24 - 1 4 - - 1 4  
Court Decision on Bankruptcy 46 25 9 7 23 - 1 4 - - 1 1  
 No Court Decision on    
Bankruptcy 6 2 1 1 1 - - - - - - 3  
Companies Dissolved 36 13 3 14 7 - 1 - 2 7 - 2  
 
 
Table 1 (b)   Number of small enterprises privatized until 1999 
 Evaluations made Privatized 1994 – 1999 Privatized through auction Subject to sale through auction 
Small enterprises 8,308 9,391 286 7 
  
 WT/ACC/SPEC/ARM/1/Rev.8 
Page 14 Table 1 c  Total privatizations 
 Paid 
(thousand Drams) 
Total of which by certificates by Drams 
Medium to large enterprises 105,321,836.2 39,766,020.0 65,555,816.2 
Unfinished construction site 524,912.4 176,180.0 348,732.4 
Small enterprises 27,161,321.8 23,856,460.0 3,304,861.8 
Total 133,008,070.4 63,798,660.0 69,209,410.4 
 
According to the amendments in the Law on Privatization made si nce the year 2001, the following changes applied to the above ta ble: 
 
1. The method of privatization through “International tender” wa s discontinued, since all types of prospective purchasers can p articipate in the tender so all types of 
tenders are presented together. 
2. Closed distribution of shares was one of the methods of privatization through direct sales, so the information on privatizat ion via closed distribution of stocks was 
included in the data on direct sales. 
3. The sale of assets to the lessees was one of the methods of privatization through direct sales, so the information on privat ization via sale of assets to the lessees was 
included in the data on direct sales. 
4. Though the Law envisages privatization through share auction,  it was currently out of practice by reason of its ineffectiven ess.  However, taking into account the fact 
that some enterprises were priva tized via this method, the information was included in the table. 
5. The Law on Privatization currently in force provides  for privatization through the issuance of new shares. 
6. The dissolution of companies was now used more frequently , so it was presented in the table in more detailed form. 
 
 
  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 15 
 
 
 20. The representative of Armenia added that with in Armenia there remained some  concerns 
about the privatization programme, particularly in re lation to  overall concept of privatization, and the 
desirability of voucher versus tender. As had b een the case with some other transition economies, 
short term gains  from privatization proved to be overstated.  A more realistic approach currently 
prevailed which as oriented toward maximization of money gains from privatization.  It was clear that 
many years may elapse before the privatised enterprise could become a genuinely profitable business, 
within which period the enterprise may change owners  several times.   The representative of Armenia 
stated that after taking all these considerations in to account, the government had recently adopted a  
more pragmatic  approach.  Currently, the main objec tives of the state privatization policy were to try 
and maximise cash returns from the privatisation on  an enterprise in combination with appropriate 
management reform.    
21. He further noted that this approach had l ead to a recent focus on the tender method of 
company privatization.  Whenever possible, enterpri ses were sold to strategic, long-term investors.  
This in turn assisted the government's objective of job creation and continuing social improvements.   
In this connection, the new Law on Privatization of  State-owned Assets provided greater flexibility in 
privatizing individual enterprises, with respect to th e form of privatization, as well as with respect to 
the terms of payment.  The Government had also begun the process of winding-up enterprises 
previously offered for privatization in respect of  wh ich privatization had failed.  He further noted that 
the transparency of information relating to pr ivatized enterprises was ensured, and detailed 
information on privatized enterpri ses was readily available in Armeni a's mass media and on a special 
internet page (www.privatization.am).   
22. In response to a  question concerning privatisa tion of agricultural land, the representative of 
Armenia stated that  almost 70 per cent of agricultura l land had been privatised.  Title to  all land had 
been made freely transferable.  Th e small share of land still in Stat e hands was reserve land and land 
used for certain kinds of agricu ltural support activities described in paragraphs 157-159 below.  There 
was no  timetable for the privatization of th e agricultural land remaining  in State hands. 
23. The representative of Armenia confirmed that to  ensure full transparency and to keep WTO 
members informed of its progress in the reform of its transforming economic and trade regime, 
Armenia would provide annual reports to WTO Me mbers on developments in its programme of 
privatization along the lines of the information provi ded to the Working Party, and on the other issues 
related to its economic reforms as relevant to its obligations  under the WTO Agreement.  The 
Working Party took note of this commitment. WT/ACC/SPEC/ARM/1/Rev.8 
Page 16  
 
 - Investment regime 
24. The representative of Armenia stated that th e 1994 Law on Foreign Investments regulated 
Armenia’s  foreign investment regime.  The Law was designed to attract foreign investment and  
provided guarantees against nationalization, by requir ing that expropriation  only take place following 
a judicial decision.  In such a case,  full compen sation would be payable.  He further noted that 
foreign investors were indemnified against damages resulting from illegal actions by Government, or 
from the improper actions by the Government (as de termined by a Court of Law).  The Law also 
guaranteed investors the right to freely repatriate profits and assets.  In the event that foreign 
investment legislation was changed after an inv estment has occurred, the investor concerned was 
entitled to an exemption from any less favourable provisions during a five-year period.  The representative of Armenia further noted  that discussion of a new Investment Law had been 
discontinued.  The main reason for this was the rec ognition  that the existing legislation did fit the  
current economic situation  and there was no  need fo r new legislation to coordinate foreign investors 
activities. 
25. The representative of Armenia recalled the descr iption of the Law on Profit Tax described in 
paragraph 10 above.  He further added that Decree No. 124 expressly stipulated that the unified 
system of export and import of goods and servi ces was extended to all economic entities of the 
Republic of Armenia, irrespective of the form of ownership and the place of registration.  This 
permitted enterprises with foreign investment to also  enjoy the benefits of certain duty-free treatment 
available to domestically owned enterprises.   
26. In response to further questions he further not ed that foreign investors were free to choose 
their own insurers.  No investment performance requi rements were maintained.  There were no export 
performance requirements for foreign investors.  The Government did not intend to introduce any such requirements.   He further stated that fo reign investors received full national treatment. Any 
restrictions on investment were  applied on a non- discriminatory basis between national and foreign 
investors, although the Constitution of the Republic  of Armenia provided that non-citizens  did not 
have the right to own land, although the Land C ode  permitted foreign citizens, juridical persons, 
other economic entities and  international organizations  to lease land in the Republic of Armenia.  The 
Civil Code of Armenia permitted state bodies or local self-government to decide to lease publicly 
owned land  or for private or collective owners to le ase their land on the basis of a reciprocal contract 
between the parties.  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 17 
 
 
 - Pricing policies 
27. In response to requests for an update on the progress of price reform, the representative of 
Armenia stated that since 1995, almost all government-mandated pri ce controls had been removed.  
The only domestic prices that were still subject to regulation were those for irrigation (Government 
Decree No. 240 from March 2002), urban electrical tran sport, electricity, hot water, gas, heating 
(delegated to Energy Commission established by the Law on Energy of 7 March 2001), sewage 
services, garbage collection, and telephone ser vices (Government Decree No. 658 of 28 October 1998 
and Government Decree No. 717 of 26 November 1999).  Those prices were still subject to regulation 
because State-owned enterprises were the exclusiv e or dominant suppliers, or in case of telephone 
services, the private supplier enjoyed exclusive rights on provision of services.  All administered prices were adjusted on a regular basis to mainta in their real value. In Armenia there was no 
differentiation in pricing based upon the category of user.  The prices of electricity and gas to 
domestic and industrial users were the same and depended upon the volumes of gas or voltage of 
electricity used.  Prices for petroleum were free and not subject to Government control.  According to 
Armenian legislation the price formulation for elect ricity and natural gas was the responsibility of an 
independent Energy Commission.  The prices for el ectricity established by the Energy Commission in 
pursuance of Decree No. 52 of 11 November 1998 were as follows: 
For consumers which use 35 Kw high voltage electricity 16 AMD per KwH 
For consumers which use 6 Kw high voltage electricity 20 AMD per KwH 
For consumers which use 0.38 Kw high voltage electricity 25 AMD per KwH 
 
The price for natural gas according to Energy Commission Decree No. 34 of 29 November 1999 were 
as follows: 
For consumers which use not more than 10,000 cubic 
metres per month 51,000 AMD per 1,000 cubic metres 
For consumers which use more than 10,000 cubic metres 
per month 46,500 AMD per 1,000 cubic metres 
 
The representative of Armenia confirmed that there was no price differentiation based on type of firm 
or output. 
28. The representative of Armenia added that subsidies on bread, municipal electric transport and 
garbage collection, and cross-subsidies on water a nd sewerage had been eliminated.  The subsidies on 
district heating and hot water (the only remaining c onsumer subsidies) were under review.  In the case 
of district heating, which less than one-third of households actually receive, the issue of provision of WT/ACC/SPEC/ARM/1/Rev.8 
Page 18  
 
 targeted heating subsidies to vulnerable groups woul d be resolved as part of the overall reform of 
social assistance. 
29. The representative of Armenia confirmed that price controls on products and services in 
Armenia have been eliminated with the exception of  those listed in paragraphs 27 and 28 of this 
Report, and that in the application of such controls, and any that are introduced or re-introduced in the future, Armenia would  apply such measures in a WTO-consistent fashion, taking account of the 
interests of exporting WTO members as provided for in Article III:9 of the GATT 1994.  He also 
confirmed that the goods and services listed in paragraphs 27 and 28 had been published in the 
Government’s official newspaper and any products subject to State price controls in the future, 
including any changes in the initial list reported at the time of accession, would be published in the 
official newspaper.  The Working Party took note of these commitments. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES 
- Powers of executive, legislative and judiciar y, administration of policies on WTO-related 
issues 
30. The representative of Armenia said that the legi slature of the Republic of Armenia was the 
National Assembly, which consiste d of 131 deputies.  The plenary powers of the National Assembly 
terminated in June in the fourth year after its election, on the opening day of a first session of the 
newly elected National Assembly when its plenar y powers commence. The members of the National 
Assembly and the Government were authorized  to submit Bills for approval by the National 
Assembly.  The National Assembly elected the Chairm an by majority vote for the whole period of its 
plenary powers.  The Chairman conducted sessions, ad ministered material and financial resources of 
the National Assembly and ensured the performance of  its ordinary activities.  Armenian Laws were 
enacted  adopted by the National Assembly.  Laws entered into force upon signature by the President 
of the Republic and following promulgation, if no ot her date was stipulated by the respective Law.  
This procedure applied to all legislative amendments  and rectifications, including those relating to the 
establishment or alteration of tariffs and taxes.  Th e President of the Republic was required to adhere 
to the  Constitution, and oversaw the ordinary activitie s of the legislative, and all exercise of executive 
and judicial powers. The President of the Republic w as elected by popular vote every five years.  The 
President issued decrees and orders, which were s ubject to implementation throughout the Republic of 
Armenia.  These decrees and orders should not be in conflict with th e Constitution and laws. 
31. The representative of Armenia added that the G overnment carried out the executive power in 
the Republic of Armenia and comprised the Prime Minister and Ministers. The President of the  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 19 
 
 
 Republic appointed and dismissed the Prime Mini ster, as well as, upon recommendation of the Prime 
Minister, appointed and dismissed the members of the Government. Resolutions of the Government 
were signed by the Prime Minister, and were ratified by the President. The Prime Minister was 
responsible for the day-to-day running of the Gove rnment and for the coordination of activities of 
other Ministers. The Prime Minister issued resolutions, which should be signed also by the Minister, responsible for implementation, in cases, envisag ed by the Order of Governmental Activities. 
32. The representative of Armenia said that in conf ormity with the Constitution of the Republic 
of Armenia, judicial powers were executed excl usively by the Courts, in accordance with the 
Constitution and legislation.  In administering jus tice, Judges were independe nt and answerable only 
to law. The guarantor of the independence of judicial bodies was the President of the Republic, who was the Head of the Council of Justice.  The Minister of Justice and the Procurator General were the 
Deputy Heads of the Council of Justice.  The Courts  of general competence were the Courts of First 
Instance, the Review Courts and the Court of A ppeals.  The Constitutional Court comprised nine 
members,  five of which were appointed by the National Assembly, and another four were appointed 
by the President of the Republic.  The Constitutiona l Court adopted resolutions and verdicts.  These 
resolutions were final, could not be challenged a nd entered into force upon promulgation.  According 
to the Constitution of the Republic of Armenia, th e Constitutional Court should decide on conformity 
of the provisions of the Agreement Establishing the WTO and of other WTO Agreements with the 
Constitution of the Republic of Armenia before submitting them for ratification to the National 
Assembly.  If norms, other than those provided by the laws of the Republic, were provided in these 
Agreements then the norms provided in that Agre ement shall prevail.  International treaties and 
agreements that contradicted the Constituti on may be ratified after making a corresponding 
amendment to the Constitution. 
33. The representative of Armenia said that accordi ng to the 1999 Civil Code of the Republic of 
Armenia  (as amended on 11 September 2001),  al l economic disputes (whether the parties were 
natural or legal persons) should firs t be referred to the jurisdiction of Economic Court.  Decisions 
taken by the Economic Court could be  appealed acc ording to the procedures stipulated by Armenian 
legislation.  Armenian legislation did  not cont emplate any differential treatment between CIS and 
non-CIS legal entities. As a result of on-going judici al and legal reforms a number of legislative acts 
had been developed and adopted.  In particular , economic litigation was required to be handled 
through the new Civil Procedure Code and the ne w Criminal Procedure Code, which entered into 
force on 1 January and 12 January 1999 respectively.  In matters other than economic issue, judicial 
review of administrative action could be obtained th rough the Courts of general competence  in the 
area of intellectual property rights protection and customs issues.  The Economic Court was 
authorized to review administrative decisions in all other areas covered by WTO provisions, including WT/ACC/SPEC/ARM/1/Rev.8 
Page 20  
 
 rulings in antidumping, safeguard and countervailing duty investigations. The Court of First Instance 
was authorised to review administrative decisions in cases where citizens are in disagreement.  The 
representative of Armenia advised that, accordi ng to the Law on Administrative Infringements, 
administrative decisions could be appealed to the hi gher authority within the administrative body after 
which it could be appealed to the court. 
34. The representative of Armenia confirmed that from the date of accession Armenia's laws 
would provide for the right of appeal of administ rative rulings on matters subject to WTO provisions 
to an independent tribunal in conformity with WTO provisions, including Article X:3(b) of the GATT 
1994. The Working Party took note of this commitment. 
35. The representative of Armenia added that as a result of the changes in the structure of the 
Government a Ministry of Trade and Economic Deve lopment had been created.  That new Ministry 
had been given  primary responsibility in most aspect s of policy affecting international trade in goods 
and services. The Ministry of Finance and Economy was responsible for fiscal policy, but decisions 
on tariffs were made together with the Ministry of Trade and Economic Development.  The Central 
Bank was responsible for monetary policy, exch ange rate policy and the banking system.  The 
Intellectual Property Agency within the struct ure of the Ministry of Trade and Economic 
Development was responsible for industrial property protection and copyright protection. 
36. The representative of Armenia confirmed that international treaties and agreements ratified by 
Parliament, including the WTO Agreement, had precedence over domestic laws or other acts in 
Armenia.  He stated that in matters of policy a ffecting trade in goods and services, including subsidies 
and taxation, the Central Government retained full authority.  Sub-central and Local administrative 
bodies have no jurisdiction or authority to estab lish regulations or taxe s on goods and services in 
Armenia independent of the central authorities in  matters covered by provisions of the WTO 
Agreement.  Within the framework of the process of Armenia's accession to the WTO, the obligations 
assumed by the Government of the Republic of Armenia, including the WTO Agreement and 
Armenia’s Protocol of Accession were subject to implementation uniformly throughout the Republic of Armenia, including in regions engaging in border trade or frontier traffic "special economic zones" 
and other areas where special regimes for tariffs, ta xes and regulations are established.  He further 
confirmed that, from the date of accession, the central government would eliminate or nullify 
measures taken by sub-central authorities in the Rep ublic of Armenia that were in conflict with the 
WTO Agreement when those measur es were brought to its attention, without requiring affecting 
parties to petition through the courts.  The Working Party took note of these commitments.  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 21 
 
 
 37. The representative of Armenia informed the Work ing Party that after the signing of the WTO 
Accession Protocol by the Government of Armeni a, all WTO Agreements would be submitted for 
review to the Constitutional Court of Armenia.   Legal conclusion of Armenia's WTO Accession 
would be accomplished upon ratification of all WTO agreements by the National Assembly.  He 
confirmed that international treaties and agreem ents ratified by the National Assembly, including 
WTO Agreements, had precedence over domestic laws or other acts in Armenia. All the laws and 
legislative instruments necessary for the application of the provisions would be adopted as provided in 
the Protocol of Accession and would  be in place pr ior to that time. The Wo rking Party took note of 
these commitments. 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Market Access Negotiations 
38. Armenia undertook negotiations on market access in  goods with interested members of the 
Working Party.  The Schedule of Concessions and Commitments resulting from those negotiations is 
in Annex I to the Appendix of the Protocol of Accession of Armenia. 
- Registration requirements 
- The rights of import and export (trading rights) 
39. The representative of Armenia informed the Wo rking Party that with certain exceptions 
necessary to safeguard human, animal and plant health and the environment, the former State 
monopoly in foreign trade in Armenia was abolis hed in 1989, and was replaced by a registration 
requirement Enterprises or private entrepreneurs engaging in trading (inc luding importation) were 
required to be registered in the State Register of Enterprises.  
40. He further stated that the Decree of the President of the Republic of Armenia of 4 January 
1992 entitled On Foreign Economic Activity, provided that all enterprises or branches, subsidiaries 
and representations thereof that were registered a nd operating in the Republic of Armenia, regardless 
of their form of ownership, were granted the ri ght to conduct foreign economic activity without any 
additional registration requirements. The legi slation governing company incorporation and 
registration consisted of:  The Law on the State Regi ster of Legal Entities; The Armenian Civil Code, 
1999; The Law on Foreign Investment, 1994; The Law on State Fees, 1997. The State registration of enterprises and private entrepreneurs in the Repub lic of Armenia, as well as the procedure and 
conditions for the use of information provided thr ough the registration process was defined in the Law WT/ACC/SPEC/ARM/1/Rev.8 
Page 22  
 
 on the State Registration of Legal Entities of 26 Apr il 2001.  Additional provisions could be found in 
the Civil Code, and for foreign investors in the Law on Foreign Investment.   
41. Engaging in entrepreneurial activities without State registration was prohibited in the 
Republic of Armenia.  Natural pe rsons were permitted to import limited quantities of items into 
Armenia for personal use without registration, althou gh to engage in resale of those items registration 
as a sole entrepreneur was required. No registra tion was required in Armenia for any enterprise 
operating from outside the Republic of Armenia as an  exporter to Armenia.  The representative of 
Armenia noted that with the entering into force of  the new Law on State Registration of Legal Entities 
(26 April 2001) a significant improvement of  registration proce dures had taken place. 
42. He further noted that certain types of activ ities required a licence.  The Law on Licensing 
(adopted on 30 May 2001) listed the types of activ ities subject to licensing.  Licenses were of the 
following type; licenses issued by "simple" procedur es;  licenses issued by "compound" procedures.   
A simple licence required submission of an applicati on to receive a licence; a copy of a legal entity's 
charter and a copy of a state registration certificate,  a copy of the state registration certificate (for an 
individual entrepreneur) and any other documents provided by law.   To obtain a compound licence an 
applicant had to supply documents required for a simple licence as well as documents certifying the 
professional qualification of a person (as applicable).  A simple licence was required to be issued within 3 days of submission of the complete a pplication.  A compound licence was required to be 
issued within 30 days, based on the conclusions of a licensing commission. 
43. The State registration of legal entities and indi vidual entrepreneurs was carried out by the 
State Registry, which operated as part of the Ministry  of Justice.  The State Registry consisted of a 
Central Body and regional divisions.  In acco rdance with Article 21 of the Law on the State 
Registration of Legal Entities the following do cuments should be submitted to the regional 
subdivisions of the State Registry at the legal entity's place of location; the application of the founder;  
the protocol of the founders' meeting on establishment of the legal entity, (signed by the chairman and 
secretary);  two copies of the charter approved by the meeting;  and a receipt for the State fee.  Legal entities with a foreign founder were also requi red to submit an extract from the commercial 
registration book of the given country (or equivale nt document confirming the legal status of the 
foreign investor) and founding documents (or the corresponding extracts), translated into Armenian 
and verified.  
44. He further added that not later than five da ys after submitting all necessary documents, the 
regional subdivision of the State Registry was requi red to complete the state registration of a legal 
entity. The state registration of individual entrepre neurs was required within a period of two days.  A  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 23 
 
 
 unified system of codes of the State registration of  legal entities operated in the Republic of Armenia. 
The Unified State Register contained information about all legal entities and individual entrepreneurs 
registered in the Republic of Armenia and was mainta ined by the Central Body of the State Registry, 
which updated it at least once every 10 days. The info rmation of the Unified State Register was open 
for general public access.   
45. He further noted that to obtain state registra tion of an amended business charter, the following 
documents must be submitted to the regional subdiv ision of the State registry: an application; the 
decision of the authorized body relating to the amendm ents and supplements in the charter, as well as 
the approval of the restated charter with am endments and supplements; the amendments or 
supplements of the charter; receipt for state fee pa yment.  Any changes and amendments in statutory 
documents, or changes in any data entries verified by State registration, were also subject to State 
registration.  The documents necessary for state registrations conditioned by different types of 
reorganization were defined by Article 23 of the Law. 
46. For the state registration of the winding-up of a legal entity the following documents shall be 
submitted:  an application, the decision of th e founders; references from tax and social security 
bodies; a corresponding document on the return of the seal; the state registration certificate.   
47. The representative of Armenia c onfirmed that the former State monopoly in foreign trade in 
Armenia had been abolished and that no restrictions  on the right of foreign and domestic individuals 
and enterprises to import and export goods and ser vices within the Republic of Armenia existed, 
except as provided for in WTO Agreements; that indi viduals and firms were not restricted in their 
ability to import or export based on their registered scope of business; and that the criteria for 
registration of companies in Armeni a were generally applicable and published officially and generally 
available to traders for their review. He further confirmed that from the date of accession, Armenia 
would ensure that all of its laws  and regulations relating to trade in goods and all fees, charges or 
taxes levied on such rights would be in full conf ormity with its WTO obligations, including Articles 
VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would also implement such laws and regulations in full conformity with these obliga tions.  The Working Party took note of these 
commitments. 
- Customs tariff 
48. The representative of Armenia stated that the Law on Customs Tariffs, adopted by the 
Parliament in August 1993, provi ded a legislative framework for setting tariffs and dealing with 
customs matters.  Decree No. 615 issued by th e Government in December 1993 introduced new 
customs duties, which were further modified by Government Decree No. 224 of May 1994 and by WT/ACC/SPEC/ARM/1/Rev.8 
Page 24  
 
 Government Decree No. 39 of January 1995. Accord ing to the new Constitution of the Republic of 
Armenia, adopted in 1995, any alterations to the Tariff were required to be  adopted by the National 
Assembly. The Law on Customs Tariffs Rates, adopt ed by the National Assembly in April 1997, 
introduced the new list of customs duties. The r ectification of the Law on Customs Tariffs was 
accomplished by the Law on Amendments to the Law on Customs Tariffs in September 1997.   In December 1998, the Law on Customs Duties was a dopted by the National Assembly.  The Law on 
Customs Duties covered the following sections:  custom s duties and types thereof;  customs valuation; 
and customs tariffs rates.  Thus an integration of the Law on Customs Tariffs of the Republic of 
Armenia and the Law on Customs Tariffs Rates of the Republic of Armenia had been made. The Law 
was in full compliance with the relevant WTO provisions.  Armenia had been using the Harmonized System of Commodity Classification since 1991.  In July 2000, the new Customs Code of the 
Republic of Armenia was adopted by the National As sembly, which incorporated the provisions of the 
Law on Customs Duties, including the customs duty rat es.  The Customs Code entered into force on 
1 January 2001. 
49. The representative of Armenia said that the cu stoms tariffs were expressed in ad valorem 
terms and were levied on c.i.f. values, except fo r tobacco products.  The Law "On Fixed Charges for 
Tobacco Products" of 31 March 2000 provided that  customs duties on tobacco products were levied 
at a fixed rate.  This law stipulated that imports of  tobacco products  were subject to specific  charges  
consisting of a value added tax, an excise tax a nd customs duties, according to the following rates: 
Table Two  
CN Code Brief Description of Products Amount of fixed 
charges (US$ for 
1,000 items) 
for imported 
products  Amount of fixed 
charges (US$ for 
1,000 items) 
for domestically 
produced products  
2402 10 001 Cigars 3,000 2,200 
2402 100 09 Cigarillos 30 22 
2402 20 900 Cigarettes with filters 11 8 
2402 20 910 Cigarettes without filters 6 3,5 
 
He further added that the difference between th e fixed charges on imported products and the fixed 
charges on domestically produced products represen ted a customs duty within the context of the 
Republic of Armenia’s commitment on ad valorem tariff rate bindings, as follows:  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 25 
 
 
 Table Three 
CN Code Brief Description of 
Products Average Value of 
Imports in 2001 
(per 1000 items) 
US$ Specific Customs 
Duty (rate per 1000 
items)  
US$ Equivalent Ad 
Valorem Customs 
Duty rate 
% 
2402 10 001 Cigars 5,750 800 13.9 
2402 100 09 Cigarillos 65 8 12.3 
2402 20 900 Cigarettes with filters 27  3 11.5 
2402 20 910 Cigarettes without filters  27 2,5 9.3 
 
50. In response to requests for information on any further specific duties charged on imports, he 
noted that the Law on Amendment to the Customs Co de of the Republic of Armenia of 26 December 
2000, established customs duties for alcohol and alcoho lic beverages.  Some members of the Working 
Party expressed concerns that the speci fic rates applied might exceed the bound ad valorem  rate.  In 
response, the representative of Armenia stated th at following accession, the Ministry of Trade would 
periodically review specific rates against average im port values for subject goods to ensure that those 
rates did not exceed the bound ad valorem  equivalent rate.  In response to further requests for 
information he provided the following table:   
Table Four 
 
HS number Product description Unit Measure Customs 
Duty Rate 
(AMD) Average of 
Customs 
Value 
(AMD per 
liter) Equivalent 
Ad Valorem 
Customs 
Duty Rate %
2203 Beer 1 litre  50 434.8 11.5
2204 Grape wines 1 litre  100 845.0 11.8
220410 Sparkling wines 1 litre  75 591.0 12.7
2205 Vermouth and other wine of 
fresh grapes flavoured with 
plants or aromatic substances  1 litre  140 1166.6 12.0
2206 Other brewed drinks (for 
example, cider, perry, mead); 1 litre  60 572.9 10.5
2207 Ethyl spirit  1 litre 
(by recalculation 
of 100% spirit)70 498.2 14.1
2208 Spirit drinks, including    
220820 Made from distillation of grape 
wine and wine ingredients 
(cognac, armagnac, etc.) 1100 7329.3 13.9
220830 Whiskies 370 2892.9 12.8
220840 Rum & tafia 420 2438.6 12.9
220850 Gin & Geneva  450 3913.0 11.5
220860 Vodka 240 2000.0 12
220870 liquor, and fruit-vodka 600 5454.5 11
220890 Other 1 litre  
(by 
recalculation of 100% spirit)
240 1920.0 12.5WT/ACC/SPEC/ARM/1/Rev.8 
Page 26  
 
 51. The representative of Armenia stated that 279 items were specified in Armenia’s tariff 
schedule.  The majority of product categories id entified at the two-digit level of the Harmonized 
System had the same rate of duty. Some member s of the Working Party asked whether it would be 
possible to disaggregate the tariff to the four or great er digit level.  In response, the representative of 
Armenia stated if it proved necessary the Government  of Armenia would continue disaggregating its 
tariff schedule from its present level.  
52. The representative of Armenia noted that more th an sixty per cent of the items in the tariff 
schedule were subject to a duty rate of zero (161 ite ms) with the remaining 97 items subject to a 10 
per cent duty rate.  Taking into account the volume  of imported goods belonging to each of those 
groups, the weighted average tariff was less than 4 per cent. Tariff revenue comprised about 5.06 per 
cent of budget revenue in 2001. 
53. The representative of Armenia stated that the ra tes of customs duty would not be applied in 
excess of the levels bound in Armenia’s WTO Sche dule of Concessions on Goods, which is annexed 
to the Protocol of Accession of Armenia.  In a ddition, upon request, Armenia would consult with 
WTO Members to address any concerns related to th e application of specific duties to imports where 
Armenia had adopted bound ad valorem  tariff rates.  The Working Party took note of this 
commitment. 
- Other duties and char ges levied on imports 
54. The representative of Armenia confirmed that there were no other duties and charges levied 
on imports except ordinary customs duties and the fees for services rendered by customs bodies as 
described in paragraphs 57-60 below.   Any such  charges applied to imports from the date of 
accession would be in conformity with WTO provisions of Armenia's Protocol of Accession.  The representative of Armenia confirmed that regarding import/export documentation there was no requirement for authentication of the documentation by Armenian consulates overseas, and there was 
no fee charged in this respect. The representative of Armenia stated that Armenia would bind all 
duties and charges, other than ordinary customs duties, at zero in Armenia's Market Accession 
Schedule under Article II:1(b) of the GATT 1994, anne xed to the Protocol of Accession of Armenia.  
The Working Party took note of this commitment. 
- Tariff rate quotas 
55. The representative of Armenia stated that Armenia did not apply any import quotas, including 
tariff rate quotas.  The representative of Armenia confirmed that his Government had no plans to 
introduce tariff rate quotas.  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 27 
 
 
 - Tariff exemptions 
56. The representative of Armenia stated that all tari ff exemptions other than those granted in the 
context of free trade area agreements were granted on a MFN basis.  According to Article 18 of the 
Republic of Armenia Law on Customs Duties of 30  December 1998, tariff exem ptions were granted 
in respect of the following:  
- capital assets imported by fo reign investors and designated for a statutory fund of joint 
ventures and enterprises wi th foreign investments;  
- goods in transit through the Re public of Armenia; 
- trucks and vehicles, regularly  operating as freight and pass enger carriers through the 
Republic of Armenia, as well as fuel, food, tools and other minor items necessary for 
temporary use to perfo rm these operations; 
- foreign exchange, bonds and other securities; 
- goods imported into the Republic of Armenia within the fram ework of humanitarian aid 
or charity programs; 
- specific goods temporarily imported into Re public of Armenia and further exported 
without being processed, such as fair and exposition exhibits, co mmodity patterns and 
package, professional equipment of tempor ary visitors, advertis ing materials, live 
animals, etc.; 
- goods imported into duty-free shops fo r subsequent exportation from the Re public of 
Armenia; 
- goods imported into the Republic of Armenia as a property of foreign clients with a 
view of processing in the Republic of Armenia and subsequent exportation; 
- goods and articles imported by the Central Bank of the Republic of Armenia; 
- any other instances foreseen in international agreements. 
According to Article 104 of the Republic of Arme nia’s new Customs Code, which had replaced the 
Law on Customs Duties, the following goods were exempt from the imposition of customs duties: 
- goods in  transit; 
- goods  temporarily imported; 
- goods  temporarily exported; 
- goods temporarily imported for  inward processing; 
- goods temporarily exported for outward processing; 
- goods released into  a customs warehouse; 
- goods released into  a free customs warehouse; 
- goods released under the regime of re-im portation and re-exportation, except for the 
cases foreseen by the Code; 
- goods released to be  destroyed; 
- goods released to a  duty free shop; 
- vehicles used for regular interstate transport of freight,  luggage a nd travellers, as well 
as tools, fuel, foodstuffs, which may  be needed during the trip, at stopovers or for 
fixing the malfunctions of the mentioned means of transport; 
- currency, foreign currency and securities; 
- goods imported into the Republic of Armeni a within the framework of humanitarian 
aid or charity programmes; 
- goods imported into the Republic of Armenia for the contribution to the statutory 
fund of commercial organizati ons and included in the list of goods established by the 
Government of the Republic of Armenia; WT/ACC/SPEC/ARM/1/Rev.8 
Page 28  
 
 - sample quantities of goods imported into the Republic of Armenia within the 
framework of exhibitions, international fairs and similar events. 
- Customs fees and charges for services rendered 
57. Some members of the Working Party stated that they considered the ad valorem  customs fee 
levied by Armenia on imports was inconsistent with the provisions of the WTO, in particular, Article 
VIII of the GATT 1994.  They also noted that a trans ition period to bring the fee into conformity with 
Article VIII was not appropriate.  Those members c onsidered that Armenia should conform with the 
requirements of Article VIII from the date of ac cession, and from that time the proceeds from the 
collection of fees should only be used for the opera tion of customs clearance facilities.  They further 
stated that  total  revenues from the fee  should not  exceed the actual cost of customs clearance of the 
imported goods.  Those members stated that following accession, Armenia should provide 
information on the method of calculation of the fee and the cost of provision of customs clearance facilities,  to WTO Members upon request. 
58. In response, the representative of Armenia stated that according to the amendment to 
Government Decree No. 615, which had entered into  force on 1 May 1996, an ad valorem, customs 
fee of 0.3 per cent had been charged on imports, with the upper limit of AMD 600,000 (approximately 
US$1,200).  The Law on Customs Fee, adopted by  the National Assembly on 28 December 1998, 
abandoned the ad valorem principle for the charging of  customs fees replacing it with a uniform fee of 
Dram 3,500 (about US$6.50) for customs processing and specific weight-related fee of Dram 300 per 
ton (about US$0.55) for freight inspection.  Article 3 of the Law on Customs Fee, set the amounts of 
the fees.    
59. He further noted that the Republic of Arme nia’s Customs Code, which incorporated the 
provisions of the Law on Customs Fees, was adopted  by National Assembly on 28 December 1998.  
According to Article 110 of the new Code, the followi ng rates of customs fees were applicable as of 
1 January 2001:  
1. A customs fee of AMD 3,500 for the customs formalities (apart from inspection and 
registration) in respect of the goods and m eans of transport carried across the customs 
border of the Republic of Armenia, as well as currency and foreign currency carried 
by the banks. 
2. A customs fee levied on the inspection and registration of the goods, except the goods 
transported through pipelines and electric transmission circuits, the amount of:  
- AMD 1,000 for the customs control of cargo declared under the same 
declaration and having up to one ton of weight; 
- AMD 300 for each additional (or incomple te) ton of weight of cargo declared 
under the same declaration and havi ng above one ton of weight.   WT/ACC/SPEC/ARM/1/Rev.8 
 Page 29 
 
 
 3. A customs fee of AMD 500,000 monthly for the customs control and registration of 
the goods transported through pipelines and electric transmission circuits.  
4. If the customs formalities are performed in  places other than those specified by the 
customs bodies, the customs fees should be levied as twice the amount of the rates 
prescribed by Article 110. 
5. A customs fee of AMD 1,000 for each document form distributed by the customs 
bodies.  
6. A customs fee of AMD 10,000 per each 100 km for the customs escort of the goods 
throughout the Republic of Armenia. 
7. A daily customs fee for the cargo stored by the customs bodies: 
- AMD 1,000 for the cargo under 1 ton of weight; 
- AMD 300 for each additional one (or incomplete) ton of cargo; 
8. A customs fee for the customs c ontrol of the means of transport: 
- AMD 2,000 for a car with up to 10 seats; 
- AMD 5,000 for other means of transport. 
According to Article 111 of the new Customs Co de, the following goods were exempt from the 
customs fees: 
- goods that entered into the Republic of  Armenia within the framework of 
humanitarian aid and charity programmes; 
- all goods carried across the customs border of the Republic of Armenia by natural 
persons and permitted for duty free importation; 
- cultural values exported under the regime of  temporary exportation and subject to re-
importation; 
- means of transport involved in regular inte rnational transport operations when in the 
course of such transportation. 
The fee was also applied to exports and to impor t purchases by the Government of Armenia. Proceeds 
from customs fee collection are transferred to the State budget. 
60. The representative of Armenia confirmed that from the date of accession, Armenia would not 
reintroduce an ad valorem customs fee.  The f ee for customs processing established under the Law on 
Customs Fees of 30 December 1998 and as of 1 Janua ry 2001, by the Republic of Armenia’s new 
Customs Code, would be applied in conformity with  WTO obligations, in particular Articles VIII and 
X of the GATT 1994. The level of applied fee woul d not exceed the approximate cost of customs 
processing of individual import and export transactions.  Revenues from the collection of the fees 
would be used solely for customs processing of imports and exports, and total annual revenue from 
collection of the fees would not exceed the approxima te cost of customs processing operations for the 
items subject to fees. He also confirmed that revenues from the fees were not used for customs 
processing of imports exempted from the fees.   Info rmation on the application and level of the fees, WT/ACC/SPEC/ARM/1/Rev.8 
Page 30  
 
 revenues collected and their use, would be pr ovided to WTO Members upon request. The Working 
Party took note of these commitments. 
- Application of internal taxes to imports 
61. The representative of Armenia informed the Wo rking Party that Armenia's tax system had 
been completely overhauled since 1992, as part of the Government's overall policy of economic 
transformation towards a market economy. On 14 Ap ril 1997 the National Assembly of the Republic 
of Armenia adopted the new Law on Taxes. Under th is Law the taxes applied in Armenia were as 
follows: 
- value added tax; 
- excise tax; 
- profit tax; 
- income tax; 
- property tax;  
- land tax 
- simplified tax. 
In particular, two indirect taxe s were imposed on imports and dome stic production in Armenia - the 
value added tax, which was charged on the turnover of goods and services, and the excise tax on certain 
goods. He recalled that details of th ose taxes were provided in paragr aphs 62-71 below of this Report.  
- Value Added Tax 
62. The representative of Armenia informed the Wo rking Party that after the Law on Value Added 
Tax entered into force on 1 July 1997, the destinati on principle of VAT application was applied to all 
countries.  Armenian exports to any destination were  charged at zero rate, a nd any imports to Armenia 
were charged at the standard rate.  In this rega rd, Armenia ensured MFN treatment in the application 
of VAT to imports.  The VAT was uniformly charged at  the rate of 20 per cent on sales of domestic and 
imported goods and services.  The value added tax was calculated and levied by customs bodies on 
goods imported to Armenia irrespective of the countries of e xportation.  With respect to certain imported 
goods with zero customs duty rate and not subject to excise tax, listed in the Law "On approval of the 
list of goods imported by orga nizations and private enterprises that have zero custom duty rate and are 
not subject to excise taxation and for which VAT shall not be calculated and levied by customs 
authority" adopted by the National Assembly on 25 J une 2001, the value added tax was calculated and 
levied by the Tax Authorities upon their sale or consumption.   
63. He further added that the VAT for all importe d goods (except for goods to which a 0 per cent 
customs duty applied and which were not subject to excise tax) was levied by customs bodies at the  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 31 
 
 
 moment of importation irrespective of the country of  origin.  The items exempted from VAT included:  
education in secondary schools, exercise books and music books for schoolchildren scientific research 
work; sales of veterinary drugs; sa les of domestically produced agricu ltural products by the producer;  
activities related to the provision of pensions; some financial operations and servi ces, etc.  In addition, 
zero-rate tax was applied to:  the taxabl e turnover of goods exported out of the Re public of Armenia; 
goods imported for official usage by diplomatic and consular representations or by other equivalent 
international, intergovernmental (interstate) organi zations, as well as goods a nd services acquired by 
those organizations in the Republi c of Armenia; transit of foreign pay-loads through the Republic of 
Armenia; construction and relevant (d esigning, research, etc.).  He recalled that the full list of VAT 
exemptions had been provided to the Working Party.   That list forms Annex II to this Report.   
64. Some members of the Working Party noted that  Armenia's exemption of domestic agricultural 
output sold by farmers and sales of domestic veterina ry drugs from the value added tax appeared to 
constitute discriminatory treatment of imports in  relation to similar domestic products and was 
therefore inconsistent with Article III of the GA TT 1994 and should be eliminated upon accession.  
The representative of Armenia responded that the value added tax exemption for farmers was not 
extended beyond the point of first sale, i.e., agricultu ral produce after it left the farm was subject to 
application of the VAT, and that it was not intended to discriminate against imports.  The exemption 
was an integral part of Armenia's agricultural suppor t system and, a transitional period of application 
after accession would be necessary prior to its elim ination in order to minimize harm to Armenia's 
agricultural sector.  This was also true for the tax exemption for veterinary drugs.  In this regard, 
legislation had been adopted by Armenia's Parliame nt eliminating the VAT exemption.  This law on 
amending the VAT, Law No. 420-N, had been  enacted on 21 October 2002 and would be 
implemented from 1 January 2009.  The Work ing Party took note of these commitments.  
65. The representative of Armenia confirmed that his Government had enacted legislation that 
would eliminate, as of 31 December 2008, th e existing exemption from the value added tax of 
domestic agricultural production sold by producers a nd for  sales of veterinary products.  He added 
that during this period, the scope of the exemption would not be increased, either in terms of coverage 
or level of exemption, nor would the scope or am ount of the tax exemption be restored if it were 
reduced during this period.  He further confirmed that, to ensure transparency during this period, 
Armenia would notify the General Council annually of  the status of the tax exemption, and on its 
scope and level.  Upon request, Ar menia would consult with WTO Members concerning the status of 
the VAT exemption and its effect on their trade.  The Working Party took note of these commitments. WT/ACC/SPEC/ARM/1/Rev.8 
Page 32  
 
 - Excise Tax 
66. In response to requests for information from members of the Working Party concerning 
excise tax the representative of Armenia stated  that according to the Law on Excise Tax,  which 
entered into force on 1 August 2000, imposed excise tax on both domestic  and imported goods.  
Excise tax on imported goods was collected by th e customs authorities, and excise tax on local 
production was collected by the tax authorities. Acco rding to the Law on Excise Tax, excise tax was 
imposed on the following goods: 
- Beer; 
- Grape and other wines, wine ingredients, including: 
- sparkling wines; 
- champagne; 
- Vermouth and other wine of fresh grapes fla voured with plants or aromatic substances; 
- Other brewed drinks, including: 
- made from distillation of grape wine and wi ne ingredients (cognac, armagnac, etc.); 
- vodka, liquor, and fruit-vodka; 
- Tobacco substitutes; 
- Primary oil and oil; 
- Oil gas and other gaseous hydrocarbons (except for natural gas). 
 
67. He added that for goods produced in Armenia the amount of excise tax collected was based 
the value of the turnover or the sale of the goo ds, based on the sales prices (without excise and value 
added taxes). The taxpayers produc ing/selling taxable goods in Armenia paid the excise tax  on 
domestically produced goods by the fifteenth of the next month following the sale of goods.  For 
goods imported into Armenia the amount of excise tax collected was based on the customs value of 
the goods  (without value added taxes and customs ta riffs).  In the Republic of Armenia excise taxes 
charged on imported goods were levied by the cust oms bodies within ten days after importation.  
The rates of excise taxes were as follows: 
Table Five 
HS number Product descripti on Taxable base Rate(AMD) 
2203 Beer 1 litre 70 
2204 
 
 
220410 Grape and other wines, wine ingredients, 
 including 
Sparkling wines, 
Champagne 1 litre 100 
 
180 
250 
2205 Vermouth and other wine of fresh grapes flavoured 
with plants or aromatic substances. 1 litre 500 
2206 Other brewed drinks (for example, cider, perry, 
mead); 1 litre 180 
2207 Ethyl spirit 1 litre (by 
recalculation of 
100% spirit) 600  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 33 
 
 
 HS number Product descripti on Taxable base Rate(AMD) 
2208 
220860,   
220870 Spirit drinks, including 
Made from distillation of grape wine and wine ingredients (cognac, armagnac , etc.)Vodka, liquor, 
and fruit-vodka 1 litre 1,500 
1,200 
 
300 
2403 Tobacco substitutes  1 kilogram 1,500 
2709 Primary oil and oil 1 ton 27,000 
    
2711 (excluding 
271111 and 
271121) Oil gas and other gaseous hydrocarbons (except for 
natural gas) 1 ton 1,000 
 
For goods under code 2208 with spirit concentration over 40 per cent the tax rate was increased by 
additional AMD 7.5 for each per cent exceeding 40 per cent.  The excise tax rates of tobacco 
products, petrol and diesel fuel were determined by  separate laws.  The Law  "On Fixed Charges for 
Tobacco Products" of 31 March 2000 established fixe d fees on tobacco products. According to the 
Law the fixed fees on imported tobacco products subs tituted for the value added tax, the excise tax 
and customs duties, and the fees on tobacco products  produced in Armenia substituted for the value 
added tax and the excise tax. The law stipulated the following rates for imported and domestically 
produced tobacco products: 
Table Six 
Amount of fixed fees  
($US for 1,000 items) CN code Brief Description of Products On imported 
products On domestically 
produced products 
2402 10 001 Cigars  3,000 2,200 
2402 100 09 Cigarillos 30 22 
2402 20 900 Cigarettes with filters 11 8 
2402 20 910 Cigarettes without filters 6 3,5 
 
68. The representative of Armenia stated that on 1 January 1997 Armenia equalized excise taxes 
on domestic goods and imports of the same or like products as part of its accession commitments (see  
tables five and six of this Report).  Furthermor e, from  1 August 2000 the new law on Excise Tax  
defined specific tax rates, that were the same for both domestically-produced and imported goods.   
69. Some members of the Working Party stated that they considered that the taxation of vodka was 
only one-fifth the rate of excise taxati on of other spirits.  This appeared to  conflict with the provisions of 
Article III concerning the taxation of similar products.  Those members requested that Armenia present information on how it intended to bring its excise taxation of vodka into conformity with the its excise 
taxation of other distilled spirit beverages.   Some  members of the Working Party also noted that the WT/ACC/SPEC/ARM/1/Rev.8 
Page 34  
 
 different rates of ex cise tax for tobacco products constituted a tariff duty applie d within Armenia's 
bound rates of duty.   
70. In response, the representative of Armenia stated that legislation had been enacted by Armenia's 
Parliament in Law No. HO-415-N on 21 October 2002 and would be implemented before the date of 
accession to equalise the level of excise duties applied to all distill ed beverages, vodka, cognac, liquor, 
etc. (HS 2208) and to equalise the level of excise dut ies applied to champagne, sparkling wines, wines, 
etc. (HS 2204).  The Working Part y took note of these commitments. 
71. Some members of the Working Party noted that the non-application of these taxes to imports 
from FSU States could  be seen to give rise to discrimination against products from non-FSU countries.  The representative of Armenia stated that Armenia had switch ed to the destination 
principle of taxation with respect to imports from all sources.  In addition Armenia was attempting to 
persuade its CIS trading partners of the desirab ility of charging these tax es at destination and not 
origin.  He further confirmed that no credit was gi ven for excise taxes applied in the exporting CIS 
country when determining the amount of excise tax payable for CIS imports into Armenia.   
72. The representative of Armenia confirmed that, from the date of accession, Armenia would 
apply its domestic taxes, including value-added and excise taxes, in a non-discriminatory manner 
consistent with Articles I and III of the GATT 1994 , with the exception noted in paragraphs 64-65 
above. In this regard, in accordance with the ne w Laws on VAT and on Excise tax, these taxes were 
applied at an equal rate on domestic and imported goods and Ar menia applied the destination 
principle to value-added and excise taxes with respect to imports from all sources, and no credit was 
given for excise or other taxes applied to imports in  their home markets prior to export to Armenia. In 
addition, the method of application of all indirect taxes applied to imports w ould be published in the 
official newspaper or other widely available sour ce and readily available to importers, exporters, and 
domestic producers. The Working Part y took note of these commitments. 
- Quantitative import restrictions (including  prohibitions, quotas and licensing systems) 
and licensing procedures 
73. The representative of Armenia stated that R esolution No. 124, 29 December 1995,  regulated 
non-tariff measures in Armenia.  Most imports were free of any prohibitions or quotas. Import 
restrictions were imposed only for health, security , and environmental reasons. The items affected 
were all kinds of weapons; military technology a nd the consumables necessary for its production; 
technologies, equipment and locators of nuclear ma terials (including heating materials); special non-
nuclear materials and services related to it; and ioni zing radiation sources.  The importation of those 
products  was subject to  specific authorization issued  by the Government of the Republic of Armenia.    WT/ACC/SPEC/ARM/1/Rev.8 
 Page 35 
 
 
 In response to requests from member s of the Working Party, the repr esentative of Armenia stated that 
Armenia would provide its initial notification of  the laws and measures that establish these 
requirements to the Committee on Import Licensing upon accession.  The Working Party took note of 
this commitment. 
74. The representative of Armenia noted that, taking into consideration the need to control the 
safety of certain products, labour and services for the protection of the national environment and 
human life and health, as well as the protection of c onsumer rights, some products were subject to 
mandatory conformity assessment according to R esolution No. 239, 12 May 2000. Pharmaceutical 
products and medicines are excluded from the list of products subject to mandatory conformity 
assessment (mandatory certification), but were subj ect to import and export permission requirements. 
The representative of Arme nia stated that the list of pharmaceutic al products and medicines subject to 
import and export permissions, issued by the Mini stry of Health, was established by Government 
Resolution 581 of 20 September 2000 as follows: 
Table Seven 
 HS number 
Pharmaceutical products, 
medicines 051000;  1211;  2941;  3001;  3002;  3003;  
3004;  3005;  300630 000;  300650 000;  300660;  380840;   
1108*;  1301;  1302;  1504;  152000 000;  1702;  1804;  1805;  2207;  2209;  2501;  2520;  
2712;  2801-2802;  280440 000;  281000 000;  284700 000;  
285100;   2904-2909;  2912-2940;  2942; 3301. 
*   1108 and the following categorie s of products in the list used for pharmaceutical purposes, are subject to 
import and/or export permission. 
 
75. The representative of Armenia stated that ac cording to the provisions of the “Law on 
Licensing” of the Republic of Armenia, a number of  activities are subject to licensing.  The list of 
activities subject to licensing is provided in Annex III.   
76. In response to questions concerning the importation of pharmaceutical products and 
medicines, the representative of Armenia stated that the importation of those products required 
authorisation from the Ministry of Health of the Re public of Armenia (except for veterinary drugs and 
related products).  Resolution 581 "On i ssuing permission for importing and exporting 
pharmaceuticals", stipulated that: 
- permissions for importation of pha rmaceuticals were issued by th e Ministry of Health of the 
Republic of Armenia; 
- the permissions were for single use only; WT/ACC/SPEC/ARM/1/Rev.8 
Page 36  
 
 - permissions could  be obtained by: 
- those importers that had a licence for con ducting exportation and im portation activity in 
pharmaceutical products and (or) medicines, given by the Ministry of Health; 
- those importers that have a licence for production of pharmaceutic al products and (or) 
medicines, given by th e Ministry of Health; 
- those importers who had no licence, but  whose activity was connected to the 
pharmaceutical products and medicines rese arch, experimental testing, quality, 
effectiveness and safety control. 
77. He further added that to obtain permission to  import those products, the following documents 
and conditions were required:   
 
(a) a licence for commercial activities involving pharmaceutical products in the Republic of 
Armenia.   (The Law on Licensing, Resolu tion 36). The Law on Licensing stipulated 
that the production and trade in medicines, trade in herbs, pharmaceutical activities, 
medical aid and services by organisations or  individual entrepreneurs, genetic 
engineering, implemen tation of medium professional  and high medical educational 
programs were subject to Stat e licensing in the Republic of Armenia.  After the Law on 
Licensing had been adopted and entered into  force some Resolutions needed to be 
changed to avoid overlaps and disparity.  Th e Ministry of Health  was responsible for 
these changes, but Resolutions except Resolu tions 161 and 415 were still in force.  The 
Law "On Medicines" stipulated that impor tation and exportation activity had to be 
licensed.  Specific requirements for import ation and exportation activity licensing were 
being elaborated by the Government.  Presently, a licence for wholesale trade gave to business entities a right to c onduct importation and exportati on activities.  Resolution 36 
stipulated that: 
- pharmaceutical and medi cal activities were subject to licensing in the Republic of 
Armenia; 
- licensing was carried out by the Ministry of Health; 
- licenses were issued for a period of 5 years. 
 Licenses for wholesale and retail trade in pharmaceutical products and medical utensils 
were issued by the State Licensing Commi ttee of the Ministry of Health. The 
procedures for issuing licenses were a pproved by the Resolution 188. The same 
procedures (including import  permission for pharmaceutica ls) applied to individuals 
who had received medical and pharmaceutical education in foreign countries.  In the 
case of the existence of international agreem ents signed by the Republic of Armenia the 
procedures specified in the agreement ap plied (Resolution 188, 24 July 1996). Foreign 
specialists invited to implement programs of international and intergovernmental 
agreements were not s ubject to licensing. 
(b) Imported or exported pharmace utical products were  required to  be registered in the 
Republic of Armenia. The regi stration of pharmaceu tical products and medical utensils 
was performed in the Republic of Armenia in accordance with the recently passed Law 
"On Medicines" and in compliance with re gistration requirements, approved by the 
Pharmaceutical Department of the Ministry of Health.   WT/ACC/SPEC/ARM/1/Rev.8 
 Page 37 
 
 
 (c) Imported and exported pharm aceuticals should have at least one year of their expiration 
period remaining, except for the pharmaceut icals whose original period of expiration 
was less than one year (the latter should have at least two-thirds of the period of 
expiration remaining at the time of importing). 
78. The representative of Armenia recalled that th e general rule for c onducting any business in 
Armenia is that legal and natural persons wishing to conduct economic activity must be registered in 
Armenia. Registration requirements and procedures  were simple and short in time, they did not 
include any prohibitions or restrictions on importa tion and exportation, and they did not discriminate 
between domestic and foreign individuals or enterpri ses.  All enterprises, or branches, subsidiaries 
and representations thereof that are registered a nd operating in Armenia, notwithstanding their form 
or nationality of ownership, have the right to conduct foreign economic activity, including importation 
and exportation (Presidential Decree on Foreign Economic Activity of 4 January 1992). Thus, a 
foreign firm desiring to import its products into Armenia need only apply for State registration, as 
well as meet such additional requirements as may a pply to the import of specific commodities.  The 
additional requirements applied with respect to trad e in pharmaceutical products  were not restrictive, 
but were maintained solely for health and saf ety purposes, and for ensuring the conformity of 
imported pharmaceuticals with the quality standard s accepted in Armenia. All requirements and 
procedures were the same for both Armenian and fo reign citizens or enterprises. Pursuant to the 
provisions of Decree 581, in order to import pharmace utical products into the Republic of Armenia, a 
person must have a license for conducting trade in pharmaceutical products (an activity licence), and 
for a specific shipment an importer having the activity license shall obtain permission from the Ministry of Health. The procedure of granting an import permission was not discretionary or 
discriminatory, and did not create unjustified barriers to  trade. It was aimed at checking the quality of 
medicines and whether those medicines were register ed in Armenia, and verifying the compliance of 
medicines with the technical requirements adopted in Armenia. Permission for importation was issued 
within ten days after application. 
Registration and licensing costs were as follows: 
a) State duty for registering a Legal entity  
1) as a private entrepreneur 3,000 AMD 
2) as a Company 12,000 AMD  
 b) The price for acquiring a   pharmaceutical activity licence 200,000 AMD  
c)  The Price for each Quality test  
 (conducted every time on selective bases) 16,200 AMD   d) The price for a single activity 20,500 AMD 
import - export permission, ( to cover the cost of issuing  WT/ACC/SPEC/ARM/1/Rev.8 
Page 38  
 
 the permit, document conformity assessment, document testing)  
valid for a period of not more than three months.   
    
 (note: 1US$=560 AMD) 
 
The representative of Armenia stated that the licence price in item d) covered the cost of issuing the 
licence. 
79. The representative of Armenia further stated that  any person, firm and institution wishing to 
apply for an import permission could do so if th ey possessed an appropriate license to perform 
pharmaceutical activities.  Registration as a juridical person or sole entrepreneur was an automatic 
procedure, subject only to any state licensing re quirement (as applicable). Applications for 
permissions were required to be determined within te n days of receipt of an application, although in 
practice permissions could be obtained within a shorter time period.  If goods arrived without 
permission, they could only be cleared thro ugh customs upon production of the necessary import 
permission. 
80. The representative of Armenia confirmed that a Government Decree making amendments to 
Government Decree No. 581 would be adopted by th e Government of Armenia prior to the adoption 
of the Decision concerning the accession of Arme nia by the WTO General Council.  This Decree 
would change the duration of the period of validit y for the import permits to one year and would 
permit multiple shipments by the same importers  as well as facilitating testing procedures.  The 
Working Party took note of this commitment. 
81. The representative of Armenia confirmed that appropriate information for importers and 
exporters concerning the regulations concerning pha rmaceutical products can be found on the website 
www.pharm.am.  
82. The representative of Armenia added that to receive permission for importation of 
pharmaceutical products the following documents were required: an application form, a 
document/contract relating to the acquisition of th e pharmaceutical products, a licence to trade in 
pharmaceutical products in Armenia, a certificate of quality issued by the producer.  The importation 
permissions were issued after the collection of a corresponding fee.  In response to further questions, 
the representative of Armenia stated that fee was designed to only cover the costs of the services 
rendered in considering the application.  The amount of the fee varied from application to application 
according to the particular expertise cal led upon to consider the application.  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 39 
 
 
 83. The representative of Armenia said that requests for permission could be refused if  (a) there 
was incorrect and/or insufficient information in the presented documents,  (b) the minimum shelf life 
requirement was not met  (c) the actual pharmaceuticals  did not correspond to the specifications 
stated in the importation documents  (d) the imported pharmaceuticals were not registered in Armenia or(e) the quality of imported pharmaceutical produc ts did not correspond to quality standards accepted 
in the Republic of Armenia. Unjustified delays a nd refusal to issue permission could give rise to 
judicial procedures within 30 days after the refusal. 
84. The representative of Armenia further noted th at permissions were issued for the period 
necessary to carry out the engagements, but no longe r than three months. The validity of a permission 
could be extended upon the substa ntiated request of an applicant.  The body issuing the permission 
could suspend its validity or cancel it. Permissi ons were not transferable among importers.  In 
response to further questions he confirmed that  permissions and licenses were available to both 
domestic and foreign entities, provided that they were  commercially registered, and that there was no 
difference in the requirements to obtain a licence de pending on whether an applicant was domestic or 
foreign in origin. 
85. The representative of Armenia stated that ther e were no agrochemicals other than fertilizers 
(HS 3102-3105) subject to mandatory conformity asse ssment (mandatory certification).  Pursuant to 
Decree No. 124 of 19 December 1995 importation of phytoprotection chemicals (HS 38.08) should be 
permitted by the Ministry of Agriculture, moreover the permission for importation of phytoprotection 
chemicals should also be approved by the Inspection of Plant Protection office in the Ministry of 
Agriculture.  The authority to make changes and ame ndments in the list of registered phytoprotection 
chemicals permitted to be imported was delegated to the Inspection of Plant Protection office in the 
Ministry of Agriculture (pending the establishmen t of the State Interdepartmental Committee for 
Registration of Phytoprotective chemicals. Impor ted or exported agricultural chemicals must be 
registered in the Republic of Armenia).  Accordi ng to the Rules on issuing permission on import of 
plant protection agents into the Republic of Armenia, to issue a  permission the following documents 
were required:  a) An application by the importer;  b) a certificate of origin and quality certificate 
issued by the producer or an appropriate organiza tion.  Import permission for agrochemical products 
was given for an import transaction (for singl e use). Permission was given only to those 
agrochemicals which were included in the list of phyt oprotection chemicals registered in Armenia.  A 
permission was normally given in 24 hours after receiving permission requirement documents.  A 
permission could be refused in case of incorrect  information provided by an importer in the 
requirement documents.  Unjustified delays and refusal to issue permission could give rise to judicial 
procedures, including to rights in the Code to appeal the superior body. WT/ACC/SPEC/ARM/1/Rev.8 
Page 40  
 
 86. The representative of Armenia confirmed that, at the latest by the date of accession, Armenia 
would provide an initial notificati on of all laws, regulations and ot her procedures regulating its import 
licensing or permission requirements, i.e. the list of measures, the legislation and its  responses to the 
import licensing questionnaire to the Committee on Import Licensing.  The Working Party took note of this commitment.   
87. The representative of Armenia confirmed that, from the date of accession, Armenia would 
eliminate and would not introduce, re-introduce or ap ply quantitative restrictions on imports or other 
non-tariff measures such as licensing, quotas, bans, permits, prior authorization requirements, licensing requirements, and other restrictions having  equivalent effect, that  cannot be justified under 
the provisions of the WTO Agreement. He furthe r confirmed that the legal authority of the 
Government of Armenia to suspend imports and expo rts or to apply licensing requirements that could 
be used to suspend, ban, or otherwise restrict th e quantity of trade would be applied from the date of 
accession in conformity with the requirements of the WTO, in particular Articles XI, XII, XIX, XX, and XXI of the GATT 1994, and the Multilateral Tr ade Agreements on Agriculture, Sanitary and 
Phytosanitary Measures, Import Licensing Procedures,  Safeguards and Technical Barriers to Trade.  
In this regard he also stated that the same kind of requirements contained in Resolution No. 124, 29 
December 1995 relating to imports would be equally applied to imports and to the purchase or sale of 
similar domestic products.  Any exemptions from those requirements would be equally applied to 
imports and the output of domestic firms. The Working Party took note of these commitments. 
- Minimum import prices 
88. The representative of Armenia noted that Armenia did not maintain a system of minimum 
import prices. 
- Customs Valuation 
89. Some members of the Working Party referred to  the Agreement on Customs Valuation and to 
certain inconsistencies of the Customs Regulations of Armenia in respect of customs valuation.  
Those members requested more detailed explanations  with regard to the implementation by Armenia 
of specific provisions of the Customs Valuation Agreem ent, in particular Articles 7, 8, 10, 11 and 12 
thereof. 
90. Noting that Armenia was a member of the Worl d Customs Organization, the representative of 
Armenia stated  that the customs valuation regime w as set out in  the Procedure for the Calculation of 
the Customs Value of Imported Goods attached to  Government Decree No. 615 of 6 December 1993,  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 41 
 
 
 and the Law on Customs Tariffs of 18 August 1993, and, following repeal of the Law on Customs 
Duties, by the Customs Code which ente red into force on 1 January 2001.   
91. According to those Laws, the primary method fo r determination of the customs value was the 
transaction value method. The Law, as well as th e Republic of Armenia’s new Customs Code, 
provided for the same six methods of valuation laid out in the Agreement on Implementation of 
Article VII of the GATT 1994.  In response to furt her questions, the representative of Armenia stated 
that Paragraph 3 of Article 12 of the Law on Custom s Duties provided a possibility of reversal of the 
order of application of the valuation methods speci fied in Articles 5 and 6 of the Customs Valuation 
Agreement upon request of an importer. This provi sion was included in Article 94 (Paragraph 2) of 
the Republic of Armenia’s new Customs Code.   
92. In response to questions of some members of  the Working Party concerning sales between 
related persons the representative of Armenia stat ed that provisions concerning such sales were 
incorporated in Articles 78 and 87 of the Customs Code.  Concerning Article 11 of the Customs Valuation Agreement, Paragraphs  2 and 3 of Article 13 of the Law on Customs Duties, as well as 
Article 96 of the new Customs Code, provided for appeal procedures concerning the decisions and 
actions of Customs bodies as regards the customs valua tion of goods.  Paragra ph 4 of Article 12 of the 
Law on the Customs Duties included provisions regard ing the circumstances specified in Article 5.2 
of the Valuation Agreement.  The relevant provisions  were incorporated in Article 91 (Paragraph 4) of 
the Republic of Armenia’s new Customs Code. 
93. In response to further questions, the representa tive of Armenia noted that the concept of 
"price paid or payable" was covered by Paragra ph 1 of Article 7 of the Law on Customs Duties 
adopted in December 1998, as well as by Article  81 of the Customs Code. The representative of 
Armenia said that in relation to Article 8 of th e Customs Valuation Agreement, Article 83 of the 
Customs Code stipulated that the customs value should include:  
the transaction value of the goods in the country of exportation; 
a) transport, loading, unloading, transhipment, insurance and other related costs made in 
connection of the goods’ carriage up to the customs border of the Republic of 
Armenia; 
b) commission and brokerage accrued in rela tion to the carriage of the goods up to 
customs border of the Republic of Armenia, except buying commissions; 
c) the costs of the following goods and services where supplied directly  or indirectly by 
the buyer to the supplier free of charge or at  reduced cost for use in connection with the 
production and supply of the goods carried across the customs border of the Republic 
of Armenia:  
 WT/ACC/SPEC/ARM/1/Rev.8 
Page 42  
 
 i) the value of materials, components, parts and similar items incorporated in the 
goods;  
ii) the value of tools and ot her similar items used in the production of the goods;  
iii) the value of materi als consumed in the production of the goods; 
iv) the value of engineering, artwork,  design work, and other similar work 
necessary for the production of the goods;  
 
d) royalties and licence fees related to the sale of the goods being valued paid or payable 
by the buyer, either directly or  indirectly, to the supplier; 
e) the value of tare, packing and packaging; 
f) the amounts payable to the supplier by the buyer  for the further sale, use and disposal of 
the goods carried across the customs bord er of the Republic of Armenia. 
94. In response to questions concerning the exch ange rate applied by the Customs, the 
representative of Armenia stated that the exchange  rate used was derived from the daily foreign 
exchange auctions held by the Central Bank of  Armenia.  The Central Bank announced exchange 
rates daily and these rates were published in the pr ess, as required by Article 9.1 of the Customs 
Valuation Agreement.  In response to questio ns concerning the mechanism for protection of 
confidential information, the representative of Armenia stated that the provisions concerning 
confidentiality of information were incorporated in  Article 95 (Paragraph 2) of the new Customs Code 
in conformity with provisions of Article 10 of the Customs Valuation Agreement.   
95. In response to requests for a detailed description of the process of review of the decisions 
made on customs valuation of goods, the representativ e of Armenia said that in relation to Article 11 
of the Customs Valuation Agreemen t, paragraphs 2 and 3 of Article  13 of the Law on Customs Duties 
provided for appeal procedures on the decisions a nd actions of the customs bodies.  The Article 
provided for appeal of a decision by the customs bod y to a higher customs body or to a court.  The 
higher customs body should make its decision regardi ng the appeal and inform the applicant about the 
decision within one month.  Respectively, paragra phs 2 and 3 of Article 96 of the new Code provided 
for similar appeal procedures on the decisions and actions of the customs bodies. 
96. The representative of Armenia said that as require d by Article 12 of the Customs Valuation 
Agreement, relevant national laws, regulations, decisions and rulings were published in the Bulletin of 
the Government of Armenia or in the Manual of th e National Assembly of the Republic of Armenia.  
In relation to the obligation contained in Artic le 13 (last sentence) of the Customs Valuation 
Agreement, when the customs value of goods cannot be immediately determined, the former 
paragraph 11 of Article 12 of the Law on Custom Du ties had provided that:  when the customs bodies 
deemed it necessary to verify or further scrutinize th e customs value declared by the applicant in the 
respective declaration, importers were entitled to remove their goods from customs control against a 
bank guarantee valid for one month, in  an amount e qual to the disputed amount payable, on condition 
of subsequent clearance in accordan ce with the final decision. He fu rther noted that the new Customs  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 43 
 
 
 Code, Article 96 (Paragraph 1), had incorporated the content of Article 12 of the Law on Customs 
Duties. Article 95 (Paragraph 1) of the Republic of Armenia’s Cust oms Code provided that the importer 
upon a written request should be entit led, within five working days, to  receive a written explanation of 
the valuation decision and the valuation method used by the customs authorities.   
97. The representative of Armenia stated that all the provisions of the WTO Agreement on the 
Implementation of Article VII of  GATT 1994 would be adopted as an integral part of Armenia’s 
Customs Code upon Armenia’s accession to the WTO. A ll relevant laws would be in full conformity 
with the requirements of the Agreement on Impl ementation of Article VII of the GATT 1994. In 
particular, a legislative amendment to Article 82 of the Customs Code enacted on 25 September 2002 
stipulates that customs valuation shall be made in accordance with the Inte rpretative Notes to the 
WTO Customs Valuation Agreement.  By means of a Government Decree, made pursuant to Article 
82 of the Customs Code, the Interpretative Notes of  the Agreement would be fully incorporated in 
Armenia’s customs valuation laws . As well, the Decision of 24 September 1984 on the Valuation of 
Carrier Media Bearing Software for Data Processing Equipment would be incorporated into the new 
Customs Code (Article 85, Paragraph (d)) ensuring that valuation of the software was based on the 
value of the media. Armenia would enact the legislation and regulations addressing these issues prior 
to the adoption of the Decision concerning Armeni a's accession to the WTO. He confirmed that on 7 
November 2002 the Government of Armenia had ad opted the necessary amendments to the Customs 
Code, which has been submitted to the Parliament for final adoption, prior to the adoption by the 
General Council of the Decision concerning Arme nia's accession to the WTO.  The Working Party 
took note of these commitments. 
- Other customs formalities 
 - Rules of origin 
98. The representative of Armenia stated that the ru les of origin applied by Armenia followed the 
principles stated in the Agreement on Rules of Origin .  Origin rules set forth the definitions of the 
goods wholly originating in one country, a change in the tariff classification of the goods, sufficient 
processing criteria, and the value-added criterion.  The choice of a method for determining origin 
depended on the goods concerned and any relevant international agreement in respect of which origin 
rules were being applied.  However, with the exception of the goods wholly originating in one 
country, the change in tariff heading criterion (at 4- digit level in the HS classification) was used 
unless an alternative was stipulated. According to th e procedure of determination of the country of 
origin attached to Government Decree No. 615 of 6 December 1993, the country of origin was WT/ACC/SPEC/ARM/1/Rev.8 
Page 44  
 
 considered to be the country where entire goods ha d been manufactured or where they had undergone 
sufficient processing.  
99. The representative of Armenia added that the Cust oms Code incorporated relevant provisions 
regulating the field of rules of origin.  The Custom s Code was in full conformity with relevant WTO 
provisions.  In particular the precise definitions of goods that were to be considered as being wholly 
obtained in one country, criteria of sufficient processi ng in terms of change of  tariff classification and 
the value added percentage criterion; and minimal operations or processes that did not by themselves 
confer origin to goods were given.  According to  Article 160 of the Republic of Armenia’s Customs 
Code the following goods should be deemed  as wholly obtained in one country:   
a) live animals born and ra ised in that country; 
b) animals obtained by hunting, trapping, fishing in the territorial and internal waters of 
that country or by performing other similar activities; 
c) produce obtained from live animals in that country; d) plants and plant products harvested, picked or gathered in that country; 
e) minerals and other natura lly occurring substances not in cluded in items (a)-(d), which 
are obtained from the territory, entrails or territorial and internal waters of that country; 
f) waste and recoverable resources derived from manufacturing and processing 
operations or from consumption in that count ry and fit only for disposal or as raw 
material; 
g) products obtained by fishing in neutral waters by vessels lawfully flying the flag of 
that country; 
h) produce made from the products referred to in (g) on board of the country's factory 
ship; 
i) products obtained on board of a spaceship owned or rented by that country pending 
the flight; 
j) goods obtained or produced in that country  solely from products referred to in items 
(a)-(i).  
100. He further added that according to Article 161 of the Customs Code, where more than one 
country were concerned in the production of the good,  the country of origin of a good would be the 
last country where the good has undergone significant processing. Criteria of significant processing were defined as:    
a) the processing operations, leading to a change  in the four digit classification of goods; 
b) processing operations, wherein the value of incorporated materials which originate in 
the given country and the value  add up at least 30 per cent of the ex-works price of 
the manufactured goods, whereas indirect ta xes, commissions, transport, insurance, 
security and other similar costs are disregarded in the ex-works price. 
In the case of goods which were classified as sets (g oods in sets) or were viewed as such, paragraph 3 
of Article 162 of the Customs Code provided that the origin of the goods, was the country where the 
set had been assembled or put together, if the overa ll value of the non-originating parts of the set did  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 45 
 
 
 not exceed 45 per cent of the value of the set.  Ac cording to Article 163 of the Customs Code, the 
following should not be deemed as criteria of sufficient processing: 
a) changes made exclusively in the meani ng and end use of the goods, for instance the 
modification of a minibus into a lorry and the like; 
b) mere packaging, in any form, in cluding bottling, wrapping and the like; 
c) classification of incomplete goods under finished goods, or the classification of 
finished, but not assembled products under assembled products pursuant to the rules 
of the Harmonized System; 
d) simple assembling operations, particularly, mere plugging together of units to form a 
good classifiable in another heading, such as the joining of a monitor, CPU, keyboard and mouse to the end of making a computer and the like; 
e) the mere addition of preservatives; 
f) obtaining of goods classifiable under meat and meat offal, from the goods classifiable 
live animals; 
g) preparatory works for the sale or transportation of the goods (making into lots,  
sorting, wrapping and the like), 
h) necessary operations for the protection, tr ansportation and storage of the products; 
i) affixing of marks, labels or other distin guishing signs of the like on products or their 
packaging; 
j) obtaining of products through mixing of goods (components), whereas the 
characteristics of these products little vary from the initial characteristics of the components; 
k) combination of two or more actions refe rred to in subparagraphs (a) to (j) above. 
 
101. The representative of Armenia stated that Article 162 of the Customs Code set forth the 
sequence of application of the rules of origin.  In his view, the Customs Code's, rules on rules of 
origin did not pursue, directly or indirectly, any tr ade objectives, nor  create obstacles for free trade, in 
accordance with WTO provisions.  The representative of Armenia added that the provisions of the 
Customs Code on rules of origin were applied to CIS imports as well as to imports of other countries 
and that certificates of origin were accepted fo r imports from CIS countries as well as from non-CIS 
countries.  According to Article 168 of the new Cust oms Code the absence of a certificate of origin by 
itself could not be the only reason to deny the en try of the goods.  Armenia would amend the Customs 
Code, prior to the adoption by the General Council of the Decision concerning Armenia's accession to 
the WTO, to bring the provisions of Article 167 (Paragraph 2) of the Customs Code into full 
compliance with the requirements of Article 2( h) and Annex II, paragraph 3(d) of the WTO 
Agreement on Rules of Origin.  Article 169 containe d provisions on appeal against actions, inactivity 
and decisions of the State bodies and the official s thereof in relation to the determination and 
confirmation of the country of origin.  That Article also provided that the declarant might apply to the 
Superior Bodies or to court, if it did not agree w ith the method of determina tion or confirmation of the 
country of origin of the goods.  The Superior Body  was required to  hear and determine  the request 
within one month and notify the applicant.  The Working Party took note of these commitments.  WT/ACC/SPEC/ARM/1/Rev.8 
Page 46  
 
 102. The representative of Armenia confirmed that from the date of accession its laws and 
regulations on rules of origin would be in confor mity with provisions of the Agreement on Rules of 
Origin and other WTO provisions including the requ irements of Article 2(h) and Annex II, paragraph 
3(d).  In this regard, he also confirmed that fo r non-preferential and preferential rules of origin, 
respectively, the relevant Armenian authorities, or preshipment inspection authority acting on their 
behalf, would provide, upon request of an exporter, importer or any pe rson with a justifiable cause, an 
assessment of the origin of the import and outlin e the terms under which it will be provided.  
According to the provisions of the WTO Agreement on Rules of Origin specified above, any request  
for such an assessment would be accepted even befo re trade in the goods concerned began, and any 
such assessment would be binding for three year s. He confirmed that on 7 November 2002 the 
Government of Armenia had adopted the necessar y amendments, which were submitted to the 
Parliament for final adoption, prior to the adoptio n by the General Council of the Decision concerning 
Armenia's accession to the WTO.  The Workin g Party took note of these commitments.  
- Pre-shipment inspection 
103. In response to questions, the representative of Armenia stated that while the Government of 
Armenia had announced an internati onal tender to submit competitive bi ds for selecting a company in 
charge of implementing pre-shipment inspection to imports from all directions in 1998, no agreement 
was ever signed.  The representative of Armenia further noted that the Government of Armenia 
currently did not see any reason or need to employ pre-shipment inspection companies. and noted that 
pre-shipment inspection was not in place in Armenia. 
104. The representative of Armenia confirmed that his Government would ensure that the 
operation of any future pre-shipment inspection syst em program would be applied in conformity with 
the requirements of the WTO Agreement, in particul ar the Agreement on Pre-shipment Inspection, the 
recommendations of the Working Party on Pre-sh ipment Inspection of 2 December 1997 and any 
subsequent recommendations issued by that Workin g Party, the Agreement on the Implementation of 
Article VII (the Customs Valuation Agreemen t), and the Agreements on Import Licensing 
Procedures, Rules of Origin, Implementation of Article VI (Anti-dumping), Subsidies and 
Countervailing Measures (SCM), Technical Barriers to  Trade, Sanitary and Phytosanitary Measures, 
Safeguards, and Agriculture.  Armenia would ensure  that any private firm performing customs duties 
covered by WTO rules would publis h their practices and procedures as required by GATT Article X, 
that ruling by the firm would be advisory onl y to the Government of Armenia and would be 
appealable to the Government and to the judiciary,  that any rulings of gene ral applicability would be 
made available to WTO members and to importe rs and exporters upon request, and that Armenia 
would, upon request of WTO Members, meet to di scuss the activities of such firms and their impact  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 47 
 
 
 on trade with a view to resolving problems. Th e representative of Armenia stated that any pre-
shipment inspection system would be temporary unt il such time as the Armenian customs authorities 
would be able to carry out these functions pr operly. The Working Party took note of these 
commitments. 
- Anti-dumping, countervailin g and safeguards regimes 
105. In response to questions, concerning whether Armenia had at present an anti-dumping, 
countervailing or safeguards regime, the representativ e of Armenia stated that  a  draft Law on Anti-
Dumping had been submitted to the National Assemb ly for adoption.  Safeguard Measures had been 
established by the adoption of the Law on Protection of the Domestic Market (Safeguard Measures of 
18 April 2001).  The Law on Protection of Ec onomic Competition had also been adopted 
(16 November 2000), the purpose of which was to protect and promote economic competition and to 
ensure an appropriate environment for fair compe tition.  These legislative acts have been drafted in 
full conformity with the relevant WTO provisions , including Articles VI and XIX of the GATT 1994 
and the Agreements on the Implementation of Article VI, the Agreement on Subsidies and 
Countervailing Measures and the Agreement on Safeguards.   
106. The representative of Armenia confirmed that from the date of accession Armenia would not 
apply any anti-dumping, countervailing or safegua rd measures until it had implemented and notified 
to the WTO appropriate laws in conformity w ith the provisions of the WTO Agreements on the 
Implementation of Article VI, on Subsidies and C ountervailing Measures, and on Safeguards.  After 
such legislation was implemented and notified,  Armenia would apply any anti-dumping duties, 
countervailing duties and safeguard measures in full conformity with the these Agreements and other 
relevant WTO provisions.  The Working Party took note of these commitments. 
- Export regulations 
 - Export restrictions and export licensing system 107. The representative of Armenia stated that the Resolution No. 124, 29 December 1995 on 
Non-Tariff Regulation of Commod ities (Operations, Services) Impor ted and Exported from  the 
Republic of Armenia regulated Armenia’s non-tari ff measures on export, and operated as a form of 
non-automatic export licensing.  The export permi ssion required by Armenia for export of certain 
goods was justified under WTO provisions, eg., Articles XI, XX or XXI of the GATT 1994.  
Automatic export licences were also required for textiles (to the European Communities only). The 
export licences on textiles were required pursuant to an agreement with the European Communities, 
but no restrictions on these exports were currently  in place. For medicines, and for certain live WT/ACC/SPEC/ARM/1/Rev.8 
Page 48  
 
 animals and plants, permission of the relevant  authorities was required.  The permission for 
medicines, live animals and plants were  generally  not restrictive - rather, they were designed to 
ensure public health and safety. The exportation and importation of weapons ; military technology and 
the consumables necessary for its production; t echnologies equipment and locators of nuclear 
materials (including heating materials); special non-nuclear materials and services related to it; and ionizing radiation sources were carried out through au thorization issued by the Government of the 
Republic of Armenia. All other prod ucts could  be freely exported fro m Armenia.  The system applied 
to exports to all destinations, except in the case of the licensing requirement for exports of textiles and 
clothing to the European Union.  The permission requirements were not intended to restrict the quantity or value of exports.  Rather, they were intended to protect the national interest and human, 
animal or plant life or health, and the environment.   The representative of Armenia stated that the 
Government did not consider that at this time , a better way existed of achieving these objectives.  
108. The representative of Armenia noted that Armenia’s non-tari ff regulation system on export 
closely paralleled that applied to imports. As on the import side, exportation of pharmaceuticals and rare animals and plants were subject to non-restric tive regulation, designed to protect health and the 
environment. Export permission procedures for pha rmaceutical products were the same as import 
permission procedures, and were regulated by the sa me Resolutions. Permissions were required for 
exports of rare objects or artifacts considered part of the national heritage.  In addition, exports of 
textiles and clothing to the European Communitie s were subject to licensing under a bilateral 
agreement with the European Communities. The licensing of textile and clothing exports to the 
European Communities allowed these items to be mon itored, but they were not currently subject to 
restrictions of any kind. 
109. The representative of Armenia said that Armenia maintained export permission requirements 
on the following items: 
Table Eight 
 HS number 
 
Objects considered part of national heritage   
Pharmaceutical products, medicines 051000; 1211; 2941; 3001; 3002; 3003; 3004; 3005; 
300630 000; 300650 000; 300660; 380840;   
1108*; 1301; 1302; 1504; 152000 000; 1702; 1804; 1805; 2207; 2209; 2501; 2520; 2712; 2801-2802; 
280440 000; 281000 000; 284700 000; 285100;  
2904-2909; 2912-2940; 2942; 3301 
Rare wild animals and plants included in the Red Book of the Republic of Armenia  
*  1108 and the following categories of products in the list used for pharmaceutical purposes, are subject to 
import and/or export permission.  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 49 
 
 
 The Red Book of the Republic of Armenia identifie d approximately one hundred rare animals and birds, 
and 390 rare plants, in respect of which permissions would be required  and whose exportation could be 
controlled. 
110. The representative of Armenia stated that  according to the Resolution No. 581, the 
exportation of pharmaceutical products and medicine ha d to be permitted by the Ministry of Health of 
the Republic of Armenia.  According to Resolution No. 124, the exportation of rare wild animals and 
plants included in the Red Book of the Republic of Armenia was carried out through permissions 
issued by the Ministry of Nature and the Environment.   Exports of objects considered of interest to the 
national heritage must be authorised  by the Minist ry of Culture. In the case of textile and clothing 
exports to the European Communities, the Ministry  of Trade and Economic Development would have 
exclusive responsibility for issuing export licences.  The  exportation of pharmaceuticals and/or 
medicines could be refused if (a) there was incorr ect and/or insufficient information in the presented 
documents, (b) the period of validity of the pharmaceutical products was exceeded, (c) the actual 
pharmaceuticals and (or) medicines did not correspond to  the specifications stated in the importation 
documents, (d) the pharmaceuticals were not regi stered in Armenia, (e) the quality of the 
pharmaceutical products did not correspond to quality st andards accepted in the Republic of Armenia.  
Unjustified delays and refusal to i ssue permission could give rise to judicial procedures.  The Ministry 
of Trade and Economic Development could deny an  export licence to an a pplicant in respect of 
exports to the European Communities if exports of  the items concerned were  to exceed a certain 
quantitative limitation. Since this has not occurred so  far, Armenia has not developed any mechanisms 
for administering export quotas. 
111. The representative of Armenia said that any pers ons, firms and institutions wishing to apply 
for an export licence could  do so  provided they were registered  as a juridical person or a sole 
entrepreneur undertaking a business activity in Ar menia. As in the case of the importation of 
pharmaceutical products, to receive permission fo r exportation of pharmaceutical products the 
following documents were required:  an applicatio n form, a certificate relating to the acquisition of 
the pharmaceutical products, a licence to trade in pharmaceutical products in Armenia, documents 
relating to the acquisition and sale of pharmaceu tical products (contract, invoice, etc.), and a 
certificate of quality issued by the producer. Permissi ons were issued within ten days from the date of 
the application. Since the ten-day stipulation was a maximum period, in practice permission could be 
obtained within a shorter period. An export permis sion would generally not be granted immediately 
upon request, but in practice the necessary procedures could be completed within a day or two. The 
fee for an export permission was equal one month’ s minimum salary in the Republic of Armenia. 
Permissions were not transferable among exporters .  A permission applicati on and/or an exportation WT/ACC/SPEC/ARM/1/Rev.8 
Page 50  
 
 could be made at any time during the year.  Permissions were issued for a period of three months. The 
refusal of permission for exportation could give rise to judicial  procedures. 
112. The representative of Armenia confirmed that  any export licensing requirements or other 
export control requirements would be applied in conformity with WTO provisions including those 
contained in Articles XI, XVII, XX  and XXI of the GATT 1994.  The Working Party took note of this 
commitment. 
- Other measures 
113. The representative of Armenia noted that in order to prevent exports at artificially low prices, 
or the under-invoicing of exports, the Resolution 124 had established a list of minimum prices each 
quarter for a list of selected commodities as a reference base for tax purposes. The reference prices had been equally applied to all export destinations.  With effect from 29 December 1995, this list only 
covered ferrous and non-ferrous me tals, (HS 72.00, 72.04, 74.0-74. 14. 75. 76.0-76.14, 78.80, 81.01, 
81.13).  According to Resolution 124 commodities of the mentioned list could be exported at prices less 
than the minimum established prices. However, the cor porate tax liabilities of firms that export ferrous 
and non-ferrous metals and sc rap were calculated on the basis of these reference prices if the declared 
export price was below the reference amount. In this ca se the exporter was required also to present the 
certificate of conformity of the Agency of Standardization Measurem ent and Certification (SARM). The 
Customs Bodies of the Republic of Armenia were required to  inform  the Tax Inspectorate about the 
transaction within a month.  At a later stage, the representative of Armenia informed the Working Party 
that on 21 April 1999, the list of mini mum reference prices was eliminated. 
- Export subsidies 
114. The representative of Armenia stated that Armenia did not offer export incentives or export 
subsidies of any kind at the present time.  The Gove rnment believed that export expansion was vital to 
Armenia’s future economic viability.  For this reaso n, consideration was bei ng given to various ways 
of stimulating exports, particul arly through promotional activities.  The Government did not, 
however, intend to rely on export subsidies as part of an export expansion program.  Export promotion measures currently related mainly to the establishment and development of appropriate 
institutions infrastructure such as the Armenian  Development Agency, which could support the 
business community by providing such services as a rranging trade fairs, promoting Armenia in the 
international scene, provision of market inform ation, conducting research activities aimed at 
identifying sectors and products with export potential, etc.  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 51 
 
 
 115. The representative of Armenia confirmed that the Government did not maintain subsidies 
which met the definition of a prohibited subsidy, with in the meaning of Article 3 of the Agreement on 
Subsidies and Countervailing Measures, and did not seek transitions to provide for the progressive 
elimination of such measures within a fixed period of  time. He further stated that Armenia would not 
introduce such prohibited subsidies in the future , and would apply export promotion measures in 
conformity with WTO requirements.  The Working Party took note of these commitments. 
- Internal policies affecting trade in goods  
 - Industrial policy, including subsidies 
116. The representative of Armenia stated that Arme nia’s industrial policy aimed to ensure more 
efficient use of domestic resources within a mark et-oriented framework.  A central policy objective 
affecting industry was privatization.  Approximately  76 per cent of formerly public-owned enterprises 
in Armenia were privatized and 24 per cent remain ed under State control. At the end of 2001 the total 
number of legal entities existing in the Republic of Armenia was about 45,000, of which only 39 were 
wholly state-owned enterprises (100 per cent of th e stock belonging to the State). In response to 
questions the representative of Armenia stated that  pending completion of the privatization program, 
the Government required State-owned enterprises to operate according to market principles.  
Enterprises in Armenia were required to acquire their inputs on the open market.  Most firms had not yet put proper market-economy accounting systems in to use, but they were developing them.  In 
response to requests for information concerning the pa yment of direct subsidies, the representative of 
Armenia stated that since the beginning of 1995, almost no direct subsidies have been granted to 
industry.  In previous years direct subsidies had been provided on a fairly large scale via 
concessionary credits to firms.  He further noted that the Government in general did not retain 
production subsidies in the industrial sector. 
117. The representative of Armenia sai d that the only beneficiaries of  direct subsidies in 1995 were 
the firms engaged in the production of strategic (military) equipment, for whom subsidies were  
granted for further construction and the equipping of plant.  The beneficiary firms did not export their 
products.  Any remaining indirect subsidies that mi ght arise as a result of cl earing arrangements were 
disappearing because of the contraction (and eventual elimination) of inter-governmental clearing 
contracts.   The procurement via State orders, whic h could also entail indirect subsidies, was being 
replaced by competitive tendering procedures, however , the Government maintained the freedom to 
grant certain privileges to domestic bidders.  In 1998 the Government recommenced the practice of 
write-offs of tax fine arrears in order to support the rehabilitation and restructuring of a few selected 
large enterprises, such as Armenmotor Compan y and Yerevan Jewellery Plant.  For analogous WT/ACC/SPEC/ARM/1/Rev.8 
Page 52  
 
 purposes, tax fine arrears were written off for tho se enterprises which incurred indebtedness because 
of default against shipments being made within  the framework of inter-governmental clearing 
contracts and procurements via State orders. 
118. The representative of Armenia further added th at because the continuing reform of policies 
might indirectly confer subsidies on industries, the Government also maintained a substantially 
deregulated business environment which, when comb ined with the Government's open investment 
policies, meant that there were effectively no ba rriers to market contestability.  Firms were free to 
enter and exit sectors on the basis of their own ma rket-based decisions.  Additional measures designed 
to safeguard and strengthen this business envir onment were the establishment of anti-monopoly and 
bankruptcy laws. The Law on the Bankruptcy of Ba nks and the Law on the Bankruptcy of Juridical 
Persons, of Enterprises Without the Status of a Juri dical Person, and of Entrepreneurs entered into 
force respectively on 1 October 1996 and on 1 March 1997.  
119. The representative of Armenia  confirmed that his Government would administer any subsidy 
programmes in full conformity with the Agreem ent on Subsidies and countervailing Measures from 
the date of its accession to the WTO.  All necessary information on such programmes would be 
notified to the Committee on Subsid ies and Countervailing Measures in accordance with Article 25 of 
the Agreement upon entry into force of Armenia's Protocol of Accession.  The Working Party took 
note of this commitment. 
- Technical Barriers to Trade 
120. The representative of Armenia not ed that, after independence, Armenia took steps to establish 
and develop its national systems of standardizati on, metrology and certification. Relevant laws 
regulating those systems were the Law on Stan dardization and Certification and the Law on 
Uniformity of Measurements accepted by the Na tional Assembly on 30 April 1997. The Law on 
Standardization and Certification provided the legal basis in the Republic of Armenia for the 
standardization as well as certification of products , services, labour (processes) and quality systems. 
This was applicable to the bodies of State g overnance, enterprises, institutions and private 
entrepreneurs and defined the means for the protecti on of interests of consumers and the State through 
the elaboration and application of normative documents  on standardization. It also defined the rights, 
obligations and responsibility of the par ticipants in the certification process.  
121. He further noted that the Law on Uniformity of Measurements defined the legal basis for 
ensuring the uniformity of measurements, regulated the relations of the bodies of State governance 
with enterprises, institutions and private entr epreneurs on issues relating to the production and 
issuance of measurement instruments, and the use and repairs thereof. It was directed at protecting the  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 53 
 
 
 rights and rightful interests of consumers and the State from the negative impact of inaccurate results 
of measurements. The Department for Standardiza tion, Metrology and Certification (SARM) was the 
coordinator of standardization, meteorological and certification activities in Armenia, and its rights 
and obligations were defined by the Law on St andardization and Certification and the Law on 
Uniformity of Measurements. Being the national bo dy in charge of the administration related to 
standardization, certification and meteorology in  Armenia, its responsibilities included the creation 
and administration of national standardization an d certification systems; the adoption of national 
standards and classifiers; the application of inte rnational standards; the publication of official 
information in the fields of standardization and certification; accreditation of certification bodies and testing laboratories; dealing with appeals a nd disputes on certification matters, etc.   
122. He further added that SARM was presided over by the State Chief Inspector, whose rights 
and obligations were contained in  Article 23 of the Law on Conform ity Assessment and Article 24 of 
the Law on Uniformity of Measurements. SARM was a collegial body that took decisions by majority 
vote.  In order to further strengthen the compliance of Armenia’s legislation with the principles of the 
WTO Agreement on Technical Barriers to Trade two new laws were adopted by the National 
Assembly on 9 December 1999: the Law on Standa rdization and the Law on Conformity Assessment 
of Products and Services to the Normative Re quirements (hereinafter Law on Conformity 
Assessment). Governmental Decree No. 9 of 11 January 2000 on Preparation, Adoption and 
Application of Technical Regulations was also adopt ed. In his view, the definitions of standards and 
technical regulations in these acts were in full comp liance with the respective definitions in Annex 1 
to the TBT Agreement. According to the Law on St andardization, implemen tation of standards was 
voluntary.  Standards become mandatory if they are referred to in technical regulations by exclusive 
reference which include those developed and main tained by agencies and Ministries other than 
SARM, e.g. the Ministry of Health and the Ministry of Agriculture.  Relevant Ministries should be 
responsible for the preparation of technical regul ations according to the Law on Standardization. 
Technical regulations shall be enacted within a reas onable interval of at least six months after their 
promulgation, as provided for in the Understanding contained in the Decisions and Recommendations 
of the WTO TBT Committee (G/TBT/1/Rev.8) and notified to the WTO.   
123. In response to further questions, the repres entative of Armenia stated that the non-
discrimination principle, as it concerns the treatment  of domestic and foreign products and services, as 
well as the principle of equivalency with the regul ations of other countries was reflected in Decree 
No. 9, of 11 January 2000. Equivalent tec hnical regulations from other countries could be 
incorporated into Armenian legislation to estab lish corresponding authorities which were responsible 
for setting up mandatory requirements for products a nd services.  Only valid international standards, 
recommendations and guides, or final drafts should be taken into account wh en elaborating national WT/ACC/SPEC/ARM/1/Rev.8 
Page 54  
 
 standards and regulations.  The Law on Conformity  Assessment regulated the activities for voluntary 
and compulsory conformity assessment of produc tion, goods, labours and services to normative 
requirements.  The Law also established the legal b asis for State activity in that field, as well as 
determined the modalities for conformity assessment , conditions of product marketing and the rights 
and obligations of parties to conformity assessment .  The three Laws currently in force (the Law on 
Standardization, the Law on Conformity Assessment, the Law on the Uniformity of Measurements) 
serve as the legal basis for the development of QSMCA (Quality Standardization, Metrology and 
Conformity Assessment) policy, pursued by SARM. 
124. He further added that the main principles of this policy were: 
- harmonization of legislation in the field of standardization, metrology and conformity 
assessment, 
- ensuring the safety of products, processes and services through State regulating 
mechanisms (technical regulations), 
- harmonization of national standards with inte rnational, regional and interstate ones,  
- direct implementation of ISO/IEC, ASTM, ASME, and European (EN) standards and 
technical regulations for mandatory requi rements in the field of conformity 
assessment, 
- widening the scope of cooperation with international organizations, 
- improvement of relevant accreditation systems to comply with international rules and 
procedures, 
- providing uniformity of measurement through State regulation mechanisms, 
- facilitating the removal of unnecessary barriers to trade, and 
- ensuring the protection of consumers' rights. 
SARM cooperated with other agencies and Ministri es, including those of Health and Agriculture in 
matters relating to sanitary and phytosanitary measures and other requirements requiring standards 
and technical regulations. 
125. The representative of Armenia added that the National Standardization System was 
established with a mission to provide: 
- the safety of products, labour (processes) and services to pr otect the natural environment, 
human life, health and property; 
- the technical and informative compatibility and inter-changeability of products;  
- the improvement in quality of products, labour and services; 
- uniformity of measurements; 
- preservation of resources; 
- the security of economic objects, in the event of the occurrence of technical and other 
disasters and emergencies; 
- the removal of technical barriers to trade; 
- the essential conditions for the state of  defence and mobilization readiness. 
  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 55 
 
 
 126. The representative of Armenia noted that th e National Standards Institute (CJSC) was 
established under the SARM to perform standardizati on activities.  The main pr ovisions of that system 
and its procedures for preparation,  adoption and application of Armeni an standards were established by 
national basic standards of  the AST 1 series.  About   230 Armeni an standards had been developed by 
the technical committees and adopted  by SARM since 1993.  The majority  of the standards applied in 
Armenia were international and re gional standards.  More than 18, 000 interstate standards of CIS 
countries are included in the national fund of standa rds.  Fifty per cent of national standards would be 
aligned to international standards by the end of 2002.  The National Standards Institute publishes a 
quarterly guide "Standards and Sp ecifications", which provides current information on technical 
regulations and specifications and is sues relating to standardization.  A Working Party member said that 
Armenia should provide a source of  information on technical regulations, specifications and issues 
related to standardization that was more accessible to interested  parties, e.g. a monthly journal or 
internet website, in order to provide sufficient flex ibility to allow Armenia to  effectively comply with 
requirements in TBT Ar ticles 2 and 5 to publish notice of proposed  technical regulations and conformity 
assessment procedures.   
127. The representative of Armenia said  that according to Article 18 of the Law of the Republic of 
Armenia “On Standardization” and Article 25 of the Law of the Repub lic of Armenia “On Conformity 
Assessment of Products and Services to the Normat ive Requirements”, technica l regulations shall be 
developed and approved to replace existing mandat ory standards to the extent required. After 31 
December 2004, all mandatory standards will expire .  With that end in view the Decree of the 
Government of the Republic of Armenia No. 852, 22 December 2000 “On approval  of the schedule for 
the development of technical regul ations in relevant fields in the Republic of Ar menia within 2001-
2004”, approved the list of technical regulations to be developed and authorities responsible for their 
development.  To date (July 2002) , 20 technical regulations had be en approved and 86 technical 
regulations were being develope d, which amounted to 30 per cent of total number of technical 
regulations to be develo ped by 31 December 2004.  Ac cording to Article 13, paragraph 2 of the Law 
"On Standardization" national standa rds are voluntary.  According to Ar ticle 2, paragraph C of the same 
Law, the requirements established by technical re gulations are mandatory.  In the month of August 
2002, a draft Government Decree was prepared to am end the provisions of Government Decree No 9 of 
11 January 2000 that would be enacte d upon accession.  According to th e amendment, six months shall 
be allowed following publication of a technical regula tion before its entry into force.  According to 
Article 14, paragraph 1 of the "Law  on Standardization", information on technical regulations adopted or 
being developed shall be published by SARM once a month in the publication "Information bulletin for 
technical regulations" in draft form at the early stag e of development, and all interested parties would 
have the opportunity to comment on the proposed technical regulation before it became final. WT/ACC/SPEC/ARM/1/Rev.8 
Page 56  
 
 128. He further noted that the following were prioriti es in the field of standardization activities:  
- establishment of quality and environment management systems’ normative base in 
compliance with international standards, 
- development of standards in the fields of military industry,  
- standardization in the field of conservati on of resources in fuel power engineering 
systems,   
- standardization of information technol ogies in compliance with international 
standards, 
- improvement of national metering standards base, 
- personnel training and qualification improvement. 
Priorities in the field of conformity assessment were:  
- quality system introduction according to the requirements of ISO 9000 series 
standards, which would be applied on  a voluntary basis as required by WTO 
provisions, 
- environmental management system introduc tion according to the requirements of ISO 
14000 series standards, which would be applied on a voluntary basis as required by 
WTO provisions, 
- reduction of the list of products subject to mandatory conformity assessment, 
- development of the process of conformity assessment results mutual and unilateral 
recognition, 
- harmonization of conformity assessment rul es and regulations with international 
requirements, 
- cooperation with internationally recognized organizations and companies in the field 
of conformity assessment, 
- improvement of accreditations system according to international requirements, 
- development of systemized privatization procedures, certification bodies and test 
laboratories. 
For the preparation, adoption and application of st andards, SARM would follow the TBT Code of Good 
Practice and would sign it from the date of Armenia’ s accession to WTO. SARM  was  cooperating with 
standards organizations in other c ountries and was a member of the International Organization ISO for 
Standardization from 1 January 1997. Presently SARM was a member of ISO and EASC, which 
enabled Armenia to partic ipate through technical committees in the elaboration of international and 
regional standards and to apply these standards in Armenia. Acco rding to Government Resolution, 
SARM was nominated as the inquiry point.  The address of the inquiry point was: 
 Department for Standardization,  Metrology and Certification  
     under the Government of the Republic of Armenia 
 Komitasa ave, 49/2  375051, Yerevan  Republic of Armenia 
 Tel:   3741 235 861 
 Fax:   3741 285 620  Email:   armstandard@sarm.am 
  Press@sarm.am  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 57 
 
 
 As stated in paragraph 5 of Gove rnment Decree No. 9 of 11 January 2000, the Republic of Armenia will 
provide information on technical regulations in acco rdance with Article 2.9.2 of the TBT Agreement to 
the other Members via the Se cretariat.  The notifica tion activities were taken over since 1 January 2001 
by a public institution, the WTO Notification Centre in the Republic of Armeni a'.  whose activities are 
described in paragraph 216. 
129. In response to questions concerning mandatory certification the representative of Armenia 
stated that the Law On Conformity Assessme nt of Products and Services to the Normative 
Requirements provided the legal basis for the conf ormity assessment of products, services, labour 
(processes) and quality systems.  It defined the rights, obligations and responsibility of the participants in the conformity assessment process.   The conformity assessment mechanisms were 
fixed in that Law. The use of less expensive a nd less trade restrictive methods of conformity 
assessment, as manufacturer’s declarations and conformity marks were also included in the Law.  
According to the Law, a certificate on conformity and a registered declaration on conformity had the 
same legal authority, and domestic and foreign manufacturers and service providers were granted 
similar rights in applying declarations on the conformity of products or services.  Mandatory 
certification activities are coordinated by SARM a nd conducted by the accredited certification bodies 
and testing laboratories.   
130. He further noted that the procedure for accreditation of certification bodies and testing 
laboratories had been established in Decree No. 238 of 12 May 2000.  According to the Decree 
accreditation was carried out by the Council for A ccreditation of Certification Bodies and Testing 
Laboratories in the field of Conformity Assessmen t.  Local and foreign bodies and laboratories had 
the same rights to be accredited in the National Sy stem for conformity assessment.   Requirements to 
certification bodies and testing laboratories had to correspond to  ISO/IEC 17025 and EN 45011, EN 
45012, EN 45002.  Taking into consideration the need  to control the safety of certain products, labour 
and services for the protection of the national envi ronment and human life and health, as well as the 
protection of consumer rights, some products we re subject to mandatory conformity assessment 
according to Resolution No. 239 of 12 May 2000.  Those products were selected taking into 
consideration the reports received from the insp ection bodies, the Ministry of Agriculture, the 
Sanitary-Anti-epidemiological State Center, cons umers, and based also on the data of research 
institutes and laboratories.  Requirements for pro ducts covered by mandatory conformity assessment 
in Armenia were kept to the minimum.  Mandato ry certification procedures were the same for both 
imported and domestic products.  Certificates were  issued for product types based on testing of 
samples, analysis of production systems, quality system certification or declaration of suppliers 
depending on the scheme of certification.  The fees for the issuance of certificates were based solely WT/ACC/SPEC/ARM/1/Rev.8 
Page 58  
 
 upon the costs of the tests required and not upon the value of the goods.  These internationally 
accepted certification schemes were fixed by AST 5.3.   
131. The representative of Armenia also stated that pursuant to the Law on Conformity 
Assessment, recognition of foreign certificates on conformity or conformity marks for products was made by bilateral agreement of the Republic of  Armenia on mutual recognition of conformity 
assessment results or unilateral recognition.  Tho se procedures were regulated by Resolution No. 247 
of 18 May 2000 of the Government of the Republic of Armenia.  According to the Resolution, in the 
absence of mutual recognition agreement a decision on unilateral recognition of conformity was made 
by SARM.  Procedures on recognition of certificat es issued by foreign certification bodies are 
regulated by Resolution No. 247 of 18 May 2000 of the Government.  According to Decree No. 247 
of 18 May 2000, in considering the acceptability of foreign certificates and conformity marks, the 
Council would take into consider ation the availability of a conformity assessment system, and the 
conformity to international standards of the pro cess of accreditation of certification bodies and testing 
bodies, in the exporting country.  Local and foreign bodies and laboratories had the same rights to be accredited in the National System for conformity assessment.  In August 2002, a Government Decree 
was prepared to amend the provisions of Govern ment Decree No 247 of 18 May 2000.  According to 
the amendment, the recognition of foreign certificates and marks of conformity will be made by the Council for Accreditation of Certification Bodies and Testing Laboratories in the Field of Conformity 
Assessment, according to the rul es for mutual of unilateral recognition of foreign certificates and 
conformity marks established by Decree No. 247 of  18 May 2000 on a non-discriminatory basis and 
based on technical considerations only.  Based on this legislation and on additional legislation, as 
necessary, Armenia was pledged to accept, inter alia , and on a non-discriminatory basis, applications 
for accreditation from conformity assessment bodies lo cated in other WTO Members, conformity 
assessment results from qualifying bodies, and other means of recognition of equivalent procedures.  
In considering the acceptability of foreign certificat es and conformity marks, the Council would take 
in to consideration the availa bility of a conformity assessment system, and the conformity to 
international standards of the process of accreditati on of certification bodies and testing bodies, in the 
exporting country.  The amendment would take effect on the date of accession. 
132. He further noted that SARM had signed c ooperation agreements on mutual recognition of 
conformity assessments with appropriate bodies of  several countries such as Belarus, Georgia, 
Kazakhstan, the Kyrgyz Republic, Moldova, the Ru ssian Federation, Tajikistan, Turkmenistan, 
Ukraine and Uzbekistan.  SARM was carrying ou t negotiations with appropriate bodies of other 
countries, particularly with Bulgaria, China, Indi a, Iran, Romania, the Slovak Republic and the United 
States, to sign similar agreements on cooperati on.  In the absence of agreements on mutual 
recognition, Resolution No. 247 of 16 May 2000, allowed for simplified procedures on acceptance of  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 59 
 
 
 certificates and conformity marks issued by certification bodies of other countries, if the Armenian 
authorities were satisfied that conformity assessmen t procedures in those countries offered adequate 
assurance of conformity, and the safety requirement s and norms conformed to those in force in 
Armenia.   
133. In response to requests from members of the Working Party, the representative of Armenia 
stated that a list of products subject to mandato ry conformity assessment were approved by Decree 
No. 239 of 12 May, with amendments approved by  Decree No. 110 of 17 February 2001, Decree No. 
297 of 12 April 2001 and Decree No. 825 of 6 September 2001.  The list of above-mentioned products is given in Annex I to this Report.  He  noted that the following technical regulations had 
entered into force: 
- The Indexes of Safety, Methods of Testing of Internal Combustion Engine Fuels and 
Requirements of Ensuring Safety in Phases of Their Maintenance, Handling, Realization and Usage and of Environmen t Conservation, approved by Order of 
SARM on 15 June 2001. Those Indexes de fined quality indexes characterising the 
safety requirements for automobile petroleum,  diesel and other engine fuels, as well 
as requirements on ensuring safety in the phases of fuel maintenance, handling, 
realisation and usage and on environment conservation.  The requirements for  
automobile petroleum, diesel and other engine  fuels were required to be  included in 
their normative and technical documentation. 
- Decree No. 41 of 15 January 2001 of the Government of the Republic of Armenia on 
Establishing Safety Requireme nts to Condensed Explosive Products.  The Decree sets 
a regulation for the condensed explosive produc ts to meet the requirements defined in 
established national standards. 
- AST 214-2001:  Condensed Explosive Pr oducts.  General Safety Requirement. 
- GOST R 51271-99:  Condensed Explosive Products.  Method of Certification Test. 
134. The representative of Armenia informed the Work ing Party that the following legislative acts 
related to Technical Barriers to Trade were a dopted and enacted in the Republic of Armenia: 
Table Nine 
Legislative Act Date of enactment 
Law on Conformity Assessment of Products and Services to the 
Normative Requirements 03.12.99 
Law on Standardization 03.12.99 
Law on Uniformity of Measurements 30.4.97 
 
135. The representative of Armenia confirmed that from the date of accession, Armenia would 
accept conformity assessment certificates issued by internationally recognized authorities of exporting WT/ACC/SPEC/ARM/1/Rev.8 
Page 60  
 
 countries with which Armenia had signed mutual re cognition Agreements, or approvals provided by 
recognized independent conformity assessment bodi es or agencies recognized by  the Council for 
Accreditation of Certification Bodies and Testi ng Laboratories in the Field of Conformity 
Assessment.  He further confirmed that after 31 December 2004, only those imports subject to 
technical regulations developed in accordance wi th Armenia's standardi sation regime would be 
subject to mandatory certification.  Upon request of WTO Members,  Armenia would meet to discuss 
these measures and their impact upon trade with a vi ew to resolving problems.  The Working Party 
took note of these commitments. 
136. The representative of Armenia confirmed that  Armenia would apply the WTO Agreement on 
Technical Barriers to Trade from the date of accessi on without recourse to any transition period, and 
would sign and follow the Code of Good Practice for the preparation, adoption and application of 
standards from the date of Armenia's accession to th e WTO.  The Working Party took note of this 
commitment.   
- Sanitary and Phytosanitary Measures 
137. The representative of Armenia informed the Work ing party that the following legislative acts 
related to Sanitary and Phytosanitary Measur es were enacted in the Republic of Armenia: 
Table Ten 
Legislative Act Date of Enactment 
Armenian Law on Veterinary  26.10.99 by National Assembly 
Armenian Law on Plant Protection and Plant Quarantine 20.3.2000 by National Assembly 
Armenian Law on Food Safety 08.12.99 by National Assembly 
 
138. The representative of Armenia stated added th at SARM cooperated with the Ministries of 
Health and Agriculture in matters relating to sanitary and phytosanitary measures. Having the 
objective to protect human health, safety and e nvironment, the Government of Armenia had 
introduced a list of goods, some of which fell with in the scope of the SPS Agreement, subject to 
mandatory certification (Resolution 15 of 16  June 1998, replaced by Resolution No. 239 of 
12 May 2000, with amendments).  In his view this was evidence of the fact that Armenia had started 
the process of elaboration of Sa nitary and Phytosanitary Measures . In 1996, the National Assembly 
adopted the Law on State Agrarian Inspections. The law defined the legal, economic and organisation 
principles of State Agrarian Inspec tions in the Republic of Armenia.  In particular, Arti cles 6 and 7 of 
the Law outlined the activities of the State Inspection Service of the Ministry of Agriculture, concerning 
cultivation of lands, use of fertilizers, the str uggle against plant diseases, insects and weeds,  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 61 
 
 
 transportation of toxic substances and mineral fertili zers, conditions of conservation and destruction, as 
well as livestock breeding with respect to veterinary  services.  According to Resolution No.17 of the 
Government (11 March 1998) the "Na tional Agrarian Rules" were establ ished.  Those Rules  dealt with 
the protection of the population from diseases common to man and animals, the prevention and 
eradication of contagious and non- contagious animal diseases, tran sportation, conservation, use and 
destruction of veterinary medicament s and disinfectants.  The list of plant pests, weeds and diseases of 
quarantine significance for the Re public of Armenia was also establ ished by this Resolution.   
139. He further added that for the implementation of the Law on State Agrarian Inspections,  a Law 
on Plant Protection and Plant Quarantine , as well as a Law on Veterinary have been established.  The 
Law on Plant Protection and Plant Quarantine defined th e legal, economic and or ganisation principles of 
the State Services of  Plant Protection and Plant Quarantine of  the Republic of Armenia, and regulated 
relations between farms, enterprise s, organizations and individuals within the Republic of Armenia.  
The Law regulated phytosanitary controls during importation/exportation of plants or products of 
plant origin.  The main concepts and requirement s of the International Plant Protection Convention 
were taken into account in the Law.  The Law al so permitted the taking into consideration of the 
phytosanitary conditions and requirements of an  importing country when issuing phytosanitary 
certificates.  The Law on Plant Protection and Plan t Quarantine was enacted on 20 March 2000.   
140. The Law on Veterinary Medicine defined the le gal, economic and organisation principles of 
the State Service of Veterinary Medicine of the Republic of Armenia, fixed the regulation for the 
prevention of diseases of animals, for the prot ection of the population from diseases common to man 
and animals, and provided the population with quali ty products according to veterinary and sanitary 
conditions. The law regulated relati ons between the State body in char ge of veterinary medicine and 
enterprises, organizations, entrepreneurs, and individuals in the Republic of Armenia.  The law established procedures of state veterinary inspection during import ation/exportation of animals and 
products of animal origin.  Armenia had been a member of the International Epizootic Office since 
December 1997 and followed guidance and standards of that organization.  In his view, both Laws 
were compatible with the requirements of the SPS Agreement.  
141. The representative of Armenia informed the Wo rking Party that Armenia was a member of 
the International Codex Alimenta rius Commission and would  follow its standards and guidance in 
establishing procedures on food safety.   
142. He further noted that a critical document in Armenia's sanitary rules and norms system was 
the so called SanPins (Sanitary and Hygienic Rules a nd Norms), issued by the Ministry of Health of 
the Republic of Armenia.  The SanPins estab lished limits on the amounts of toxic compounds, WT/ACC/SPEC/ARM/1/Rev.8 
Page 62  
 
 additives, contaminants in the food and foodstuff s and were based on scientific data and risk 
assessments conducted by research in stitutes.  The Food Safety Law provided stabilization relating to 
food activities, particularly concerning the pr oduction and reproduction, importing, exporting, 
exchanging, keeping, packaging, se lling as well as usage of products. 
143. The representative of Armenia confirmed that upon accession to the WTO, Armenia would 
apply its sanitary and phytosanita ry requirements consistently with the requirements of the WTO 
Agreement, including the Agreements on Sanitary a nd Phytosanitary Measures  and Import Licensing 
Procedures without recourse to any transition period.  Relevant WTO provisions would be applied 
should Armenia decide to establish a system of plant and anim al surveillance to de tect plant and animal 
diseases.  The Working Party took note of this commitment. 
- Trade-Related Investment Measures (TRIMs) 
144. The representative of Armenia stated that Armeni a did not maintain measures that were not in 
conformity with the Agreement on Trade-Related Investment Measures and would apply the TRIMs 
Agreement from the date of accession without recourse  to any transitional period.  The Working Party 
took note of this commitment. 
- State Trading Enterprises 
145. The representative of Armenia stated that the State monopoly over foreign trade of the 
Former Soviet Union was abolished in 1989, and wa s replaced by a registration requirement for the 
conduct of such activity.  By a decree of the Presi dent of the Republic of 4 January 1992 entitled On 
Foreign Economic Activity, all enterprises register ed and operating in the Republic of Armenia, 
regardless of their form of ownership, had the ri ght to conduct foreign economic activity, and are not 
subject to any additional registration requirements. 
146. Some members of the Working Party stated that , in their view, certain telecoms enterprises 
were engaged in State-trading pursuant to Article XVII of the GATT 1994.  In response, the 
representative of Armenia stated that, based on th e definition of State-trading set out in the 
Interpretation of Article XVII of the Genera l Agreement on Tariffs and Trade 1994, Armenia 
maintained one State trading enterprise in the telecommunications sector. Basic telecommunication 
services, mobile and international data transmissi on and value-added services had been reserved to 
Armentel, a joint-stock company owned by the Government of Armenia and a foreign private 
supplier, in exchange for commitments by Arme ntel to develop Armenia’s telecommunications 
infrastructure.   WT/ACC/SPEC/ARM/1/Rev.8 
 Page 63 
 
 
 147. In response to questions whether Armenia inte nded to report its State monopoly of natural gas 
distribution under Article XVII, the representative of Armenia replied that Armgas had not been 
granted exclusive or special rights or privileges in  the market for natural gas distribution.  The 
Armenian network of gas distribution was pr ivatised, resulting in the establishment of 
"ArmRusGasArd" CSC.  This did not prevent any other entity with majority private ownership from 
purchasing gas or from involvement in gas distribution. A Member  was of the opinion that 
notwithstanding its ownership characteristics, as the sole provider and trader of gas in Armenia, 
Armgas was a State trading enterprise.   This Member sought informati on about this firm and other gas 
suppliers.  The representative of Armenia said that the "ArmRusGasArd" was the main gas supplier.  
The "ArmRusGazArd" company was owned by ArmGaz (45%), GazProm (45%) and ITERA Company (10%).   There were a number of retail g as suppliers whose prices were related to market 
conditions. 
148. The representative of Armenia confirmed that his Government would apply its laws and 
regulations governing the trading activities of St ate-owned enterprises and other enterprises with 
special or exclusive privileges and would otherwise act in full conformity with the provisions of the 
WTO Agreements, in particular Article XVII of the GATT 1994 and the Understanding on that 
Article; and Article VIII of the GATS.  The Wo rking Party took note of these commitments. 
- Free zones, special economic zones 
149. The representative of Armenia stated that Arme nia did not maintain any free trade zones in 
which special duty privileges of any kind were gran ted.  Armenia had, however, established a Frontier 
Trade Area in the Meghri Region, on the border w ith Iran.  The Frontier Trade Area was established 
to promote trade between Armenia and Iran.  U nder the arrangement, Arme nian enterprises were 
encouraged to establish a presence in the border ar ea and Iranian enterprises were encouraged to do 
the same on their side of the frontier.  Forty c itizens from each country were entitled to freely enter 
each other’s border areas in order to explore busi ness and trading opportunities, but no special 
customs regime or privileged duty treatment was asso ciated with any exchang es agreed on the basis of 
these contacts. 
150. The representative of Armenia confirmed that if Armenia established any free zones or 
special economic areas, it would administer an y such areas in compliance with WTO provisions, 
including those addressing subsidies, TRIMs and TRIPS and that goods produced in these zones 
under tax and tariff provisions that exempt imports and imported input s from tariffs and certain taxes 
would be subject to normal customs formalities when entering the rest of Armenia including the application of tariffs and taxes.  The Wo rking Party took note of these commitments. WT/ACC/SPEC/ARM/1/Rev.8 
Page 64  
 
 - Government procurement 
151. The representative of Armenia informed the Wo rking Party that government procurement in 
Armenia had previously been governed by Govern ment Resolution number 67 of 8 February 1995 
"On the State Procurement Order of the Republic of Armenia".  Pursuant to that Resolution, when 
government entities wished to procure goods, they co uld do so either through any procurement agent 
or directly from the marketplace on their own behalf . No procurement entity, either State-owned or 
private, enjoyed special rights or privileges.  All interested parties could participate in procurement 
activities under the common rules.  These purchases, which were given effect through State Orders, 
were financed directly from the budget, and in volved the acquisition of goods and services by 
government entities for their own consumption (i.e. not for resale or use as inputs into production).  In the past, these arrangements had sometimes involve d implicit subsidy elements for the suppliers 
concerned, since prices under State Orders had not necessarily corresponded to market prices.  
152. The representative of Armenia informed the Workin g Party that in its efforts to bring internal 
legislation into full comp liance with WTO regul ations, the Government had initiated the adoption of the 
Law on Procurement, which was adopted by the Parlia ment on 5 June 2000, and signed by the President 
on 19 June 2000.  As required by the Law the State Procurement Agency was established as the single 
agency responsible for Government Procuremen t (in excess of Armenian Dram 250,000) from 2001 
onward.  For the 2000 budget all Government procur ement was made in a non-centralized manner, 
while all agencies made their procurements according to the regulations specified in the Law.  The Law 
defined clear and transparent procurement rules and regulations which are in conformity with the WTO 
Agreement on Government Procurem ent, in particular the national treatment and non-discrimination 
principles are guaranteed in confor mity with Article III of the Agreement on Government Procurement.  
153. The  representative of Armenia stated that the Government of Armenia had decided to 
commence negotiations to join the Agreement on Government Procurement from the date of 
accession. In this connection, Armenia would request observer status in the Committee on 
Government Procurement prior to accession to th e WTO and would submit an entity offer within 
three months of accession to the WTO.  He also confirmed that, if the results of the negotiations were satisfactory to the interests of Armenia and ot her members of the Agreement, Armenia would 
complete negotiations for membership in the Agre ement by 31 December 2003.  The Working Party 
took note of this commitment. 
- Transit 
154. The representative of Armenia stated that Ar menia permitted unimpeded and tax-free transit 
of goods, with the exception of those goods w hose importation was prohibited, i.e. weapons,  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 65 
 
 
 components used in the production of weapons, expl osives, nuclear materials, poisons, narcotics, 
strong psychotropic substances, devices for use in opium smoking, and pornographic material.  Thos 
items would only be allowed to be transit through the Republic of Armenia wi th the explicit consent 
of the Government of Armenia.  Transit goods rema ined under customs control while they were in the 
Republic of Armenia.   
155. He further added that the  Customs Code im plemented on 1 January 2001 regulated transit 
trade.   According to Article 27 of the Customs C ode, within the framework of the transit shipment 
regime, customs charges were not levied, except for the customs fees and other fees in cases foreseen by law.  Non-tariff measures were not applied, except where otherwise prescribed by the Code or other laws and international treaties to which the Republic of Armenia was a party.  Armenia was a 
party to a plurilateral agreement on transit tr ade within the framework of the CIS Economic 
Cooperation Treaty.  This agreement provided that signatories should not tax or  impede transit trade 
through their territories.  Armenia had also signed a bilateral agreement on this subject with Georgia.  
Similar agreements with Iran and th e Ukraine were under consideration. 
156. The representative of Armenia confirmed that the Government would apply the laws and 
regulations governing transit opera tions and would act in full conformity with provisions of the WTO 
Agreement, in particular with Article V of th e GATT 1994.  The Working Party took note of this 
commitment. 
- Agricultural policy 
157. The representative of Armenia said that as in th e case of the industrial sector, the Government 
of Armenia did not maintain State planning of any kind in the agricultural sector. The representative of Armenia added that in the past the Government of Armenia did not consider direct subsidies as a 
part of the development program of the agricultural sector. The Government provided some indirect subsidies, and the main types of support to the agriculture sector included the following: covering 
electricity charges on irrigation water supply; prov ision of low-interest loans to farmers and tax 
exemptions (particularly exemption of VAT for produ cers of basic agricultural products).    There had 
been some provision of cereal seeds through "seed-loa ns" in the past.   In addition, the Government 
supported a range of activities dedicat ed to reparation of the irrigation network, to restructuring of 
financial and communication infrastructures, to trai ning farmers in improved agricultural techniques, 
to upgrading seed and livestock quality, to conducting pest and disease control, and to providing 
technical advice and extension services. In his view, those measures fit with the green box of domestic support tables as far as the provided ser vices were available to all farmers and involved 
budgetary outlays.  The Governme nt intended to further increase direct support to agricultural WT/ACC/SPEC/ARM/1/Rev.8 
Page 66  
 
 producers.  He further added that the support provi ded to agricultural producers was aimed to assist 
farmers to overcome structural and operational difficulties during the transition towards a market 
oriented economy.   
158. He further noted that in contrast to the relativ ely slow pace of industrial reform, Armenia had 
privatized almost 70 per cent of agricultural land,  and made land titles freely transferable. Information 
on agricultural supports was submitted to the Working Party.   
159. The representative of Armenia added that as far as inputs were concerned, two large State 
enterprises,  Hayagrospasarkum  (Armagroservice ) and Hayberriutyun  (ArmProsperity) were 
dominant suppliers of agricultural services and input s such as agricultural machines and spare parts 
thereof, seeds, chemicals and fertilizers. In 1996, 66  per cent of each of thes e enterprises had been 
privatized while 34 per cent had remained State-ow ned in the form authorized by the Ministry of 
Agriculture (holding). Despite th e fact that the competition remained somewhat constrained in the 
input market, there were no restrictions to stop ot her suppliers from entering it. More new private 
enterprises have been entering the market and in creasing their market shares, particularly in the 
market of fertilizers. This tendency was expected to  be continued with the development of conditions 
of competition in the market. He further added that those enterprises had no exclusive or special rights 
or privileges granted by the Government of Armenia in the field in which they operated. 
160. The representative of Armenia stated that Ar menia would not seek recourse to subsidies 
provided for under Article 6.2  of the Agreement on Agriculture. 
161. Armenia's commitments concerning the elim ination of the VAT exemptions for basic 
agricultural  products and veterinary drugs  are reproduced in paragraphs  64-65. 
162. The representative of Armenia stated that the Government of Armenia paid no export 
subsidies on exports of agricultural products.  Acco rdingly the Government of Armenia would bind its 
agricultural export subsidies at zer o level in the relevant part of  the Schedule of Concessions on 
Goods.   
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME 163. The representative of Armenia stated that the firs t step in the direction of intellectual property 
protection was the establishment of the Armenian Patent Office in 1992. Since December 1992, it has 
been possible to file applications for patents in respect of inventions, and as from August 1993, after 
adoption of the Law on Patents, to register utility m odels and industrial designs.  An applicant not a  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 67 
 
 
 national of Armenia and not domiciled in Armenia must conduct his affairs through a patent attorney 
registered with the Armenian Patent Office. 
- Intellectual property policy 
164. In response to requests for information con cerning the intellectual property policy of the 
Government of Armenia, the repr esentative of Armenia stated that the Government of Armenia was 
currently engaged in a substantial program of le gislative reform.  During 1993-1994, the Armenian 
Patent Office received some 3,000 applications fo r trade marks, service marks and appellations of 
origin. From January 2000 to January 2002 the Armeni an Patent Office had received 296 applications 
for inventions – of which 273 were submitted by local Armenians and 23  by foreigners, and 
approximately 446 applications for trademarks ac cording to National Procedure.  However, the 
reception of trademark applications for registrati on began after the issue of Resolution No. 4 of 19 
August, 1995, "On Confirmation of the Temporary Regulations for Trademarks and Service Marks" 
and Patent Office Order of 24 October 1995, "O n re-registration of former Soviet Union valid 
certificates for trade and service marks".  
165. He further noted that in May 1997, the Armeni an National Assembly had adopted the Law on 
Trade and Service Marks and Appellations of Orig in of Goods, and the Law on Trade Names. The 
provisions of the adopted statutes were fully consis tent with international norms in this area. A 
distinctive feature of the first of these Laws was the legal equality established between trademarks and 
service marks.  The representative of Armenia confir med that the following legislative acts related to 
intellectual property protection were currently  enforced in the Republic of Armenia: 
Table Eleven 
Legislative act Date of enforcement 
1. Armenian Law on Patents 25. 8.93  
2.  Armenian Law on Copyright and Related Rights 31.5.96 
3. Armenian Law on Advertising 31.5.96 
4. Armenian Law on Trademarks, Service Marks and Appellations of Origin of 
the Goods 21.6.97 
 
5. Armenian Law on Trade Names 1.7.97 
6. Armenian Law on Topographies of Integrated Circuits 14.3.98 
7. Civil Code 1.1.99 
8. Civil Procedure Code 1.1.99 
9. Criminal Procedure Code 12.1.99 
 
The representative of Armenia stated that the foll owing legislation related to intellectual property 
protection, (which included either amended or orig inal legislation) had been prepared and enacted WT/ACC/SPEC/ARM/1/Rev.8 
Page 68  
 
 with the aim of bringing Armenia's intellectual pr operty protection regime into conformity with WTO 
requirements.   
Table Twelve 
Legislative act Date of 
Enforcement Coverage 
Law on Patents of the Republic of Armenia (new) 
 16.12.99 (Articles 27, 30, 31, 34  of 
the TRIPS Agreement) 
Law on Copyright and Related Rights (new)  20.01.00 (Articles 12, 14
ter of the 
Berne Convention and 
Article 10 of the TRIPS 
Agreement) 
Law on Trademarks, Service Marks and Appellations of Origin of the Goods (new)  20.01.00 (Articles 5 ©, 6
bis, 6septies, 10 
of the Paris Convention and Articles 15, 16,17,19, 22, 23, 
24, 46, 47  of the TRIPS 
Agreement) 
Law on Trade Names   15.10.99 (Article 8 of the Paris 
Convention) 
Amendments to Civil Code 14.3.2000 (Articles 17, 22, 30, 39 of 
the TRIPS Agreement) 
Amendments to Civil Procedure Code 24.10.00 (Articles 42, 46, 47, 50 of 
the TRIPS Agreement) 
Amendments to Criminal Procedure Code 
 5.4.2000 (Articles 46, 47, 50, 61 of 
the TRIPS Agreement) 
Armenian Law on Selection Achievements    27.12.2000 (related to the protection of 
plant varieties. Article 27 of 
the TRIPS Agreement) 
Armenian Law on Protection of Economic Competition (including the regulation of unfair competition and 
protection of undisclosed information) 15.12.2000 (Articles 10bis, 10ter of the 
Paris Convention and Article 
39, 40 of the TRIPS Agreement) 
Customs Code 01.01.2001 ("Special Requirements 
related to Border Measures" 
provided by Section 4, Part III of the TRIPS Agreement) 
 
166. The representative of Armenia stated that the Criminal Code, (implementing Articles 10bis, 
10ter of the Paris Convention and Articles 46, 47, 50,  61 of  the TRIPS Agreement), would be 
implemented from the date of Armenia's accession to the WTO.  The Working Party took note of that 
commitment. 
- Responsible agencies for policy formulation and implementation 
167. The representative of Armenia said that policy formulation and implementation in the field of 
industrial property (patents, utility models, industr ial designs, trademarks and service marks, trade 
names, layout designs of integrated circuits and appellations of origin) and copyrights was the 
responsibility of the Armenian Intell ectual Property Agency acting within  the  Ministry of Trade and  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 69 
 
 
 Economic Development. The Intellectual Property Agency was responsible for approving industrial 
property right applications, maintaining the State Re gister of industrial property rights, issuing an 
official bulletin reflecting its decisions, and coope rating with foreign institu tions and international 
organizations. The Intellectual Property Agency was also responsible for the regime covering 
trademarks. 
- Participation in international in tellectual property agreements 
168. The representative of Armenia stated that on 22 April 1993, Armenia became a Member of 
the World Intellectual Property Organization (WIPO) .  On 17 May 1994, Armenia also deposited a 
declaration of continued application of the Paris Convention for the Protection of Industrial Property, 
the Madrid Agreement Concerning the International Registration of Marks and the Patent Cooperation 
Treaty.  On 27 February 1996 Armenia became a Me mber of the Eurasian Patent Organization.  The 
National Assembly of the Republic of Armenia ratifie d the Protocol relating to the Madrid Agreement 
concerning the International Registration of Mark s on 5 April 2000 and the Berne Convention for the 
Protection of Literary and Artistic Works on 3 Ma y 2000.  Draft legislation concerning Armenia's 
accession to the Rome Convention for the Protection of Performers, Producers of Phonograms and 
Broadcasting Organizations and the Geneva C onvention for the Protection of Producers of 
Phonograms Against Unauthorized Duplication of their Phonograms recently passed its first reading 
in the National Assembly of the Republic of Armenia. 
- Application of national and MFN treatment to foreign nationals 
169. Some members of the Working Party noted th at although the representative of Armenia had 
stated that foreigners enjoyed national treatment in both civil and criminal procedures before the 
courts, its replies to questions concerning administrative review pr oceedings, dealing with the powers 
of judicial branches of government, suggested th at the jurisdiction of economic courts was not 
available to foreigners from outside the CIS.  In r esponse, the representative of Armenia stated that all 
persons  enjoyed equal rights under the law, for example, the Law on Patents provided that all 
foreigners enjoy the same rights as nationals of Ar menia in relation to all patent matters, including 
protection of patents and legal remedies against infringement. The  Law on Trade and Service Marks 
and Appellations of Origin of Goods, and the La w on Trade Names similarly envisage full national 
and MFN treatment for foreigners. This was also the case with respect to the Law on Copyright, and 
any future laws and regulations adopted in th e sphere of intellectual property protection. WT/ACC/SPEC/ARM/1/Rev.8 
Page 70  
 
 - Fees and taxes 
170. The representative of Armenia stated that fees we re payable upon filing of an application and 
granting of a patent.  Similar arrangements were in place for trademarks and service marks. All fees 
were set so as to be limited in amount to the a pproximate cost of services rendered, and the granting 
and protection of intellectual property rights was not  subject to taxation, as any fee was collected on 
behalf of the budget.  The fees for legal protection of Industrial property, established by the Law on 
State Duty of the Republic of Armenia, were iden tical for resident Armenians and non-residents. 
- Substantive standards of pr otection, including procedures for the acquisition and 
maintenance of intellectual property rights 
- Copyright protection 
171. The representative of Armenia stated that th e National Copyright Agency was established in 
1993. More than 2,000 authors and their artworks were  registered with the Agency.  In the framework 
of its activities the Agency also registered those or ganizations which made use of artworks, such as 
theatres, concert organizations, or organizations usi ng works of arts and crafts for industrial purposes.  
Copyright policy implementation was the responsib ility of the National Copyright Agency, which 
registered copyrights, assisted individuals to secure copyrights, provided advisory services, and 
collected and paid royalties due to authors and their successors in title.  From March of 2002 the 
National Copyright Agency operated within the Armenian Intellectual Property Agency. 
172. The representative of Armenia added that in accordance with the Law on Copyright and 
Related Rights, which was adopted by the Nationa l Assembly in May 1996, the National Copyright 
Agency provided protection for copyrights in the Republic of Armenia.  The new Law on Copyright and Related Rights had been elaborated in accordan ce with the provisions of the Bern Convention on the 
Protection of Works of Art and Li terature and entered into for ce on 20 January 2000.  It provided 
protection for the property rights of computer program s and compilations of data, as well as for related 
rights, i.e., the rights of phonogr am and videogram producers and broadcasting a nd television stations, 
as protection of pre-existing copyrighted works a nd sound recording national treatment protection for 
works and sound recording.   
- Trademarks, including service marks 
173. The representative of Armenia informed the Work ing Party that in May 1997, the Armenian 
National Assembly adopted the Law on Trade and Service Marks and Appellations of Origin of 
Goods and the Law on Trade Names which came into force in July 1997.  As mentioned earlier, a  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 71 
 
 
 distinctive feature of the first of these Laws was the legal equality established between trademarks and 
service marks.  The Law set out the terms and c onditions of trademark protection, the kinds of 
trademarks that may not be registered, the procedures for registering trademarks, the rights of appeal 
against decisions relating to trademarks, the circum stances in which trademarks may be used, and the 
documentary requirements for registering a tradem ark.  Trademark protection was granted for 10 
years, renewable for successive periods of 10 years.  He stated that in his view, the provisions of the 
Law were in full conformity with Articles 15, 16. 1 and 17–21 of the TRIPS Agreement.  In response 
to further questions, the representative of Armenia st ated that as regards the provisions of Articles 
16.2 and 16.3 of the TRIPS Agreement concerni ng well-known trade and service marks, these were 
also taken into account in the Law on Trade and Se rvice Marks and Appellations of Origin of Goods 
(unlike the former Resolution No. 4 of 19 August 1995 ), and they were fully reflected in the new Law 
on Trademarks, Service Marks and Appellations of Or igin of the Goods which had entered into force 
on 15 April 2000. 
- Geographical indications, incl uding appellations of origin 
174. Some members of the Working Party asked how Armenia would protect geographical 
indications under the Law on Trade and Service Ma rks and Appellations of Origin of Goods, and 
whether that legislation would be in conformity with Articles 22 to 24 of the TRIPS Agreement. The 
representative of Armenia stated that although geogr aphical indications had not explicitly mentioned 
in Resolution No 4 of 19 August 1995, nor in the former Law on Trade and Service Marks and 
Appellations of Origin of Goods of 1997, Article s 22 to 24 of the TRIPS Agreement were now fully 
reflected  in the Law on Trademarks, Service Marks and Appellations of Origin of Goods of 15 April 
2000. The relevant provisions in that Law had been developed in compliance with the provisions of 
the Paris Convention (Articles 1(2), 10, 10 ter, 10bis, 6quinquies  B.3), the Madrid Agreement on the 
Repression of False or Deceptive Indications of Sour ce on Goods (Articles 1(1), 1(2)), and the Lisbon 
Agreement for the Protection of Appellations of Or igin and their International Registration (Articles 
2(1), 2(2), 3, 6). 
- Industrial designs 
175. The representative of Armenia st ated that industrial designs were protected by the Law on 
Patents of 1993.  In particular, the articles of the Law which established the necessary conditions for 
patentability of industrial designs, we re consistent with Articles 25 a nd 26 of the TRIPS Agreement.   
In response to requests for information concerning the specific protection for textile designs provided 
for in Article 25(2) of the TRIPS Agreement, the representative of Armenia stated that although textile designs were not explicitly mentioned in Artic le 8 of the Law on Patents of 1993 (Article 6 of WT/ACC/SPEC/ARM/1/Rev.8 
Page 72  
 
 the new Law on Patents of 1999), they were neve rtheless covered under that provision. There was 
also a similar reference in Article 1.1.3 of the Rules of Drawing Up, Filing and Consideration of 
Applications for Industrial Design adopted on 31 August 2000. 
- Patents 
176. The representative of Armenia said that the owner of a title deed (title of  protection patent or 
certificate) for invention or industrial design granted by the Patent Office of the Soviet Union, and 
which was still current, could file with the Armenian Patent Office for an Armenian patent at any time 
during the validity period of the exclusive rights (20 years after the initial filing). In the ten-year period to 1990, residents of Armenia registered 6,000 inventions with the Patent Office of the Soviet 
Union. The Law on Patents specified the nature of  patentable subject matter, the conditions for 
patentability, the rights of patent holders, the conditions of compulsory licensing, the procedures for 
granting patents, and dispute settlement. 
177. The representative of Armenia stated that th e Law on Patents was adopted in August 1993.  
Under the law, patents were granted for inventions , utility models and industr ial designs. The term of 
patents for inventions was 10 years for preliminar y patents, which were granted on the basis of a 
preliminary examination of the invention, and 20 y ears when the patent was granted on the basis of a 
substantive examination (principal patent).  These periods were counted from the date of filing.  
Patents for inventions were granted subject to re quirements that the object of the patent was new, 
involves an inventive step and was capable of indust rial application, and that no conflict arose with 
respect to public order and security, good morals and law.   
178. He further added that the patent application was subject to formal examination which was 
required to  be carried out within two months fro m the filing date.  If the application satisfied the 
formal requirements, it was laid open to public insp ection for a period of four months from a date of 
publication, after which a preliminary patent coul d be granted.  A principal patent was granted 
depending on the results of substantive examinati on, which was  carried out upon request of the 
applicant or any other interested party.  The request was required to be filed within seven years of the  
date of filing of the patent application.  The re quest for substantive exam ination could be submitted 
within one year after the expiration of the said seven-year period, providing the person requesting 
review paid an additional fee.    
179. Some members of the Working Party asked whether  Armenia's Law on Patents was in full 
conformity with Articles 27 to 34 of the TRIPS Ag reement, and requested further information on the 
conformity of Armenia's system of compulsory li censing.  In response, the representative of Armenia 
said that in the interest of national security and in the public interests or in situations of emergency in  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 73 
 
 
 the Republic of Armenia, as well as in instances of  public non-commercial use, the Government of the 
Republic of Armenia was empow ered to use or authorize third parties to use an invention, utility model 
or industrial design without the consent of the patent  owner (compulsory licence), provided the patent 
owner was notified within 10 days and paid adequate remuneration taking into account the 
circumstances of each case and the economic value of such authorization .  
180. The representative of Armenia stated that the new Law on Patents was in conformity with 
Articles 27 to 34 of the TRIPS Agreement, and am endments concerning compulsory licensing were 
adopted on 26 November 1999.   
 - Plant variety protection 
181. Some members of the Working Party asked Armenia would ensure protection of plant 
varieties.  The representative of Armenia stated that the Law on Selection Achievements, ensuring the 
sui generis  protection of plant varieties was adopted on 22 December 1999 and had entered into force 
on 27 December 2000.  
- Layout designs of integrated circuits 
182. In response to questions concerning the system for protection of layout designs of integrated 
circuits, the representative of Armenia stated that the Law on Protection of Layout Designs of 
Integrated Circuits had been adopted on 3 Februa ry 1998 and entered into force on 14 March 1998.  
- Requirements on undisclosed information, including trade secrets and test data 
183. In response to requests for information con cerning the protection of trade secrets and 
undisclosed information in Armenia, notably in view of Article 39 of the TRIPS Agreement, the representative of Armenia stated that Armenia had in corporated provisions for the protection of trade 
secrets and undisclosed information in its Civil Code  (Article 141 and Chapter 68).  Legislation to 
cover the protection of undisclosed information in  the form of the Law “On Protection of Economic 
Competition” covering both the regulation of unfair competition and protection of undisclosed information had entered into force on  15 Decembe r 2000.  By this Law the Agency of Economic 
Competition was established.  This Agency w as also responsible for unfair competition.  
- Measures to control abuse of intellectual property rights 
184. In response to a question, the representative of Armenia stated that appropriate measures to 
prevent or control abuse of intellectual property right s were contained  in the  Law "On Protection of 
Economic Competition" that had entered into force on 15 December 2000.    WT/ACC/SPEC/ARM/1/Rev.8 
Page 74  
 
 185. The representative of Armenia also stated that , for the purpose of combating restraints on 
trade and abuses of intellectual property rights, co mpulsory licensing was provided for under the Law 
on Patents.  Article 16 of the Law on Patents stated th at if an invention, a u tility model or an industrial 
design were not used or were insufficiently used  within four years from the date of filing an 
application or three years from the grant of patent , any person who, on the expiry of the mentioned 
term, wished to use the invention, utility model or industrial design, but had not succeeded in 
concluding a licence contract with the patent owne r, could submit a request for a compulsory licence 
to the Government of the Republic of Armenia.  In this event, the licence would  be granted, provided 
that the patent owner did  not fu rnish evidence stating valid reasons  for not using or insufficiently 
using the invention, utility model or the industrial design.  Any dispute in respect of compulsory 
licence granting and amounts, order and terms of paymen ts was required to  be settled in the courts.   
186. He further added that under the adopted Law on Trade and Service Marks and Appellations of 
Origin of the Goods, at the request of any person trademark protection could be nullified by a court 
decision, if a trademark has not been used within fi ve years of the date of registration or preceding the 
date of request for nullification.  A trademar k owner has the right to defend the non-use of a 
trademark, and block a decision to remove the propert y right if the reasons for not using the trademark 
were beyond the control of the owner. 
- Enforcement 
- Civil judicial procedures and remedies 
187. The representative of Armenia stated that civil c ourt procedures were always available to deal 
with legal matters relating to intellectual property pr otection. The courts were empowered to order the 
payment of damages and court expenses. Other re medies envisioned in the TRIPS Agreement were 
also within the decision-making authority of Armeni an courts.   In response to questions concerning 
foreigners' rights to enforce inte llectual property rights, and whether the remedies, procedures and 
penalties were in conformity with Articles 42 to 49 of the TRIPS Agreement, the representative of 
Armenia stated that the civil courts in Armeni a were fully empowered to provide the remedies 
referred to in the above mentioned Articles of the TRIPS Agreement.  Civil remedies could not be 
ordered as a result of administrative procedures. Fo reigners enjoyed the same rights as Armenian 
nationals in this area. Remedies against criminal  behaviour were available under Armenia’s courts 
and penal system. Foreigners had the same acce ss to those remedies as Armenian nationals. The 
Government was considering the amendment of ex isting legislation and introduction of additional 
legislation containing remedies that were framed  in more specific terms for the enforcement of 
intellectual property rights. At a later stage, the representative of Armenia stated that the missing  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 75 
 
 
 provisions were included in the Civil Procedure a nd Criminal Procedure Codes, which was adopted 
on 17 June 1998 and 1 July 1998 respectively and entered into force on 12 January 1999.   
188. Some members of the Working Party asked wh ether Armenian judicial authorities had the 
authority to order injunctions or provisional me asures against infringement of intellectual property 
rights, as provided for in Articles 44 and 50 of the TRIPS Agreement, and whether administrative 
authorities enjoyed similar authority. In response the representative of Armenia stated that the judicial 
authorities had the power to order injunctions or pr ovisional measures.  Articles 15, 16 and 22 of the 
new Law on Patents indicated the areas in which re medies may be sought through the courts in the 
area of patent protection. Article 46 of the new La w on Trade and Service Marks and Appellations of 
Origin of Goods, as well as Articles 42 to 44 of  the Law on Copyright and Neighbouring Rights 
provided similar provisions in the case of trademarks, service marks, copyrights and related rights.  
 - Provisional measures 
189. The representative of Armenia stated that the C ourts of First Instance also had  authority to 
take the provisional measures envisioned in  Article 50 of the TRIPS Agreement. 
 - Administrative procedures and remedies 
190. The representative of Armenia stated that civ il remedies could not be ordered as a result of 
administrative procedures in Armenia. 
 - Special border measures 
191. Some members asked whether Armenia had a system of border enforcement against 
intellectual property rights infringements in acco rdance with Articles 51 to 60 of the TRIPS 
Agreement.  The representative of Armenia replied th at judicial authorities were empowered to take 
the kinds of measures envisioned in Articles 51 to 60 of the TRIPS Agreement.  At a later stage, the representative of Armenia stated that full conformity with the requirements of Articles 51 to 60 of the 
Agreement on TRIPS had been achieved with the enactment of Section 14 "Assistance of the Customs 
Bodies in the Protection of Intell ectual Property Rights" of the Cust oms Code which entered into force 
on 1 January 2001.  
 - Criminal procedures 
192. The representative of Armenia stated that Article  140 of the original Criminal Code provided 
that infringement of copyright, publication (disclosur e) of an invention before the application filing, 
appropriation of invention’s authorship, as well as coer cion or inclusion into collaboration of persons WT/ACC/SPEC/ARM/1/Rev.8 
Page 76  
 
 not participating in the creation of an invention, could be punished  by imprisonment for a period of 
up to two years or by a fine in the amount of 10 -20 times of the established minimal wage.  Article 
157 of the same Code stated that deception of purchasers and customers was punishable by 
imprisonment for a period of up to two years or by  a fine not in the amount of 20-40 times of the 
established minimal wage.  In addition, as mentioned above, the additional provisions included in the 
new Criminal Code, which entered into force on 12 January 1999.  Those provisions achieved 
conformity with the provisions of Part III of the TRIPS Agreement.  
193. The representative of Armenia submitted to the Working Party draft legislation concerning 
the Criminal Code and the Law on Copyright an d Neighbouring Rights aimed at implementing the 
TRIPS Agreement.  He stated that this legislation would be implemented prior to the date of adoption 
by the General Council of the decision concerni ng Armenia's accession to the WTO.  The Working 
Party took note of this commitment. 
- Laws, decrees, regulations and other legal acts relating to the above. 
194. Some members of the Working Party stated  that since 1992, Armenia had bilateral 
commitments for the protection of intellectual prope rty rights.  Those members stated that Armenia 
should accelerate its legislative process to ensure  the full implementation of the TRIPS Agreement 
from the date of its accession to the WTO.  In addition, some members of the Working Party 
requested clarification of the status of the draf t Law on Trade Marks, Service Marks and Appellations 
of Origin of Goods in Parliament, and whether the legislation was in full conformity with Articles 15 
to 21 of the Agreement on Trade-Related Aspects of Intellectual Property Rights.   
195. In response, the representative of Armenia re plied that on May 1997, the Armenian National 
Assembly adopted the Law on Trade and Service Mark s and Appellations of Origin of Goods and the 
Law on Trade Names and that the recently amended ve rsions of those Laws were in full conformity 
with Articles 15 to 21 of the TRIPS Agreement, including the rights specified in Article 16. 
- Statistical data on applications for and grants of intellectual property rights, as well as any 
statistical data on their enforcement 
196. In response to requests for information concerning the numbers of patent applications filed in 
Armenia, the representative of Armenia stated that during 1993-2001, 16,834 pa tent applications had 
been filed with the Patent Office.  In 1,220 cases a decision for granting a patent was adopted, in 426 
cases a patent was refused or the application w as withdrawn, and 38 applications were under 
examination.  During 1994-2001, 52 applications for obtaining industrial design patents were filed, 34 
from foreigners, and 42 applicants were granted a patent.  As regards trade and service marks and  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 77 
 
 
 appellations of origin, after adoption of the Law on State Duty in September 1996, 7,088 applications 
passed the preliminary examination and 6,506 trad e and service marks were registered by the 
Armenian Patent Office.  During 1997-2001, 11 appli cations for appellations of origin had been filed 
with the Patent Office and seven appellations were re gistered.  Under the new legislation more than  
2,000 authors, theatre and concert organizations ha d concluded contracts with the National Copyright 
Agency. 
197. The representative of Armenia stated that the Government of Armenia would apply the 
provisions of the Agreement on TRIPS no later than the date of its accession to the WTO, without 
recourse to any transitional periods.  He confir med that on 7 November 2002 the Government of 
Armenia had adopted the necessary amendments concerning national treatment and retroactive 
protection for pre-existing works, which were submitte d to the Parliament for final adoption, prior to 
the adoption by the General Council of the Decision concerning Armenia's accession to the WTO.  
The Working Party took note of this commitment. 
VI. TRADE-RELATED  SERVICES REGIME 
- General 
198. In response to questions, the representative of  Armenia informed members of the Working 
Party that Armenian laws and regulations, and th e policy framework did not generally distinguish 
between trade in goods and trade in services.  The ri ghts to trade were enshrined in the Civil Code of 
the Republic of Armenia, implemented on 1 January  1999.   All enterprises were required to be 
registered and the register was open to public scrutiny.  Those requirements applied to all juridical persons, whether they were self-employed pers ons (individual entrepreneurs) or commercial 
organizations. 
199. Armenia's Schedule of Specific Commitments in  Services is reproduced in Part II of the 
Annex to the Protocol of Accession. 
- Trade Agreements 200. Some members of the Working Party requested that Armenia provide detailed information on 
the range of Free and Barter Trade Agreements to which Armenia was a party.  Other members 
requested information so that the Working Party could examine whether Armenia’s plurilateral and 
bilateral Free Trade Agreements were consiste nt with Article XXIV of the GATT 1994.    
201. In response to these requests, the representative of Armenia informed the Working Party that 
Armenia had developed a network of plurilateral and bilateral trade agreements with various WT/ACC/SPEC/ARM/1/Rev.8 
Page 78  
 
 countries.  A number of the arrangements were short- term in nature, designed to respond to particular 
needs, other agreements were viewed as more durable, representing the Armenian Government’s 
perception of the directions in which future trade relations should develop.  As a member of the 
World Trade Organization, Armenia would keep it s bilateral and regional trade agreements under 
review, not only to ensure legal c onsistency, but also to ensure the coherence of Armenia’s trade 
relations with a broad multilateral framework. 
- Plurilateral or regional agreements 
202. In response to further requests for informati on on Armenia's trade regional trade agreements, 
the representative of Armenia stated that the Tr eaty of Economic Union was a framework agreement 
signed by nine Heads of State of the Commonwealth  of Independent States (CIS) in 1993 (Azerbaijan, 
Armenia, Belarus, Kazakstan, Kyrgyz Republic, Mo ldova, Russia, Tajikistan, and Uzbekistan).  The 
treaty envisaged that signatories would move to wards the establishment of a customs union and 
common market among CIS countries, however, each si gnatory might exercise its own discretion on 
the pace and timing of integration into economic stru ctures of the CIS.  Other economic and financial 
components of the CIS treaty related to a paymen ts union, cooperation on investment, industrial 
cooperation, and an agreement on customs procedures.   The treaty set out quite specific commitments 
in many of these areas (as well as on cultural, scientif ic, and defence matters).  Because the treaty was 
essentially an evolving framework document, it did not "operationalize" these commitments.  Instead, 
the specifics of preferential trading relationships were  defined in bilateral free trade agreements and in 
clearing agreements. 
203. Also in response to requests for further inform ation, the representative of Armenia explained 
that Armenia was also a member of the Black  Sea Economic Cooperation (BSEC) Organization, 
along with ten other countries (Alb ania, Azerbaijan, Bulgaria, Geor gia, Greece, Moldova, Romania, 
Russia, Turkey and Ukraine).  This agreement covered a number of fields, including economic 
cooperation and trade, investment, scientific and t echnical cooperation, the establishment of a BSEC 
Bank, and cooperation on transport and communications .  The agreement did not make any provision 
for preferential trade, although it envisaged the possi bility of free trade zones in the future.  More 
generally, the organization seeks to cement re lations among neighbour ing countries through 
cooperation in such areas as transport, intern ational payments and i ndustrial development. 
204. Some members asked whether Armenia had c oncluded an economic cooperation agreement 
with the European Union.  Th e representative of Armenia confirmed that the Partnership and 
Cooperation Agreement between the European Unio n and Armenia had been signed on 22 April 1996, 
and entered into force on 1 July 1999.  The Agre ement did not provide for any trade preferences.  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 79 
 
 
 - Bilateral free trade agreements  and trade and economic cooperation agreements with CIS 
countries 
205. In response to questions of some members a bout Armenia's bilateral agreements with CIS 
countries, the representative of Armenia stated that bilateral free trade agreements (FTAs) had been 
signed with Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, 
Tajikistan, Turkmenistan and Ukraine.  The bilatera l free trade agreements had been ratified with the 
Russian Federation (1993), Kyrgyz Republic (19 95), Turkmenistan (1995), Georgia (1996), Ukraine 
(1996), Kazakhstan (1999) and Belarus (2000) and b ecame legally binding.  When the free trade 
agreements were established and operationalized, tari ffs were set up at zero level, and non-tariff 
restrictions were eliminated. The representative of  Armenia further responded that the FTAs had been 
an outgrowth of the trade and economic coopera tion agreements that Armenia signed with CIS 
countries.  Most of these early agreements were negotiated annually, they envisaged free trade and 
they included lists of products that the parties agre ed to trade with one another.  Particularly after 
1992 product lists tended to become indicative with no prior agreement on prices, and the 
commitments were only partially fulfilled.  Fr om 1995 the practice of product commitments was 
eliminated.  However, under the FTA with the Russ ia Federation, each party could exempt from duty 
free treatment any export items subject to quotas, licences and export taxes.  Since Armenia did not maintain any export restrictions (other than those generally applicable for public security, health and 
safety reasons), there was nothing on Armenia’s exce ption list under the free trade agreement.  Russia 
maintained certain export restric tions which could be c overed by the exception provisions of the FTA, 
but in practice, these often did not apply because of the trade and economic cooperation agreements 
that Armenia also signed annually with Russia.  No other exceptions to duty-free treatment for 
imports were contemplated in the Russian-Armenia n free trade agreement.  Within the period after 
signing of a bilateral Free Trade Agreement w ith Armenia (1992-1997), the Russia Federation had 
substantially liberalized its foreign trade (removed qu otas, export taxes etc.).  Its legislation on tariff 
and non-tariff regulation of exports did not provide for a list of specific products.  This ensured the 
conformity of the FTA between Armenia and th e Russian Federation with the WTO rules on free 
trade. The bilateral protocol, signed on 28 August 1997,  confirmed the fact that substantial deviations 
from the free trade regime between Armenia and Russ ia were eliminated.  There were no exemptions 
from duty free treatment in the ratified bilateral ag reements with Turkmenistan, Ukraine, Kyrgyz 
Republic and Georgia. 
- Bilateral clearing arrangements 
206. In response to requests for information in relati on to Armenia's barter trade agreements with 
other countries, the representative of Armenia stated that barter was the essence of the remaining WT/ACC/SPEC/ARM/1/Rev.8 
Page 80  
 
 clearing arrangements maintained by Armenia.  Ba rter arrangements had been   The Government was 
committed to eliminating barter arrangements as so on as practicable and recognized that its role as 
trader or as intermediary in trade inhibited the establishment of independe nt networks and contacts 
with foreign buyers by enterprises which was an essential determinant for exporting success.   
207. In response to requests for amount of trade flow s arising from barter trade agreements,  the 
representative of Armenia said that the 1993 clea ring arrangements involved 74 per cent of total 
exports and 56 per cent of total imports. The resp ective figures in 1994 were 46 per cent for exports 
and 29 per cent for imports.  As far as transpor t and payments problems were being settled, the 
importance of barter trade gradually decreased and by late 1995 deliveries under the clearing arrangements were abandoned in practice.  In respon se to later requests for information  on existing 
barter trade arrangements the representative of Armenia stated that in 1996 the Government 
announced its intention to cease barter trade, a nd none of the former barter arrangements was 
recommenced. The Government of Armenia di d not envisage conducting barter or clearing 
settlements in the future. 
- Bilateral trade and cooperation agreements 
208. The representative of Armenia also stated that trade and cooperation agreements had also 
been signed with many non-CIS countries, including  Argentina, Austria, Bulgaria, Canada, China, 
Cyprus, European Union, Hungary, India, Iran, Lebanon, Lithuania, Poland, Romania, Syria, 
Switzerland, Slovenia, Slovak Republic, the United States and Vietnam.  The possibility of such 
agreements with a number of other countries w as under active consideration. Those agreements 
sought  to strengthen economic links, but did not contain any provisions for preferential trade. 
- Other non-trade bilateral agreements 
209. The representative of Armenia noted that Armenia had also signed a series of other 
agreements on investment and on customs relati ons.  The reciprocal investment promotion and 
protection agreements sought to encourage investme nt between the parties, primarily by guaranteeing 
national and more favourable treatme nt, non-expropriation (expropriation,  an extremely rare measure, 
could be executed only due to public needs, upon  providing preliminary adequate and effective 
compensation for the expropriated investments), and unrestricted transfers of investment funds and 
returns from the investments, implementation of in ternational arbitration practices in the case of 
disputes between parties, as well providing gu arantees against legislative changes.   
210. He further noted that investment agreemen ts had been signed with 27 governments:  
Argentina, Austria, Belarus, Belgium-Luxembourg, Bulgaria, Canada, China, Cyprus, Egypt, France,  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 81 
 
 
 Georgia, Germany, Greece, Iran, Israel, Switzer land, Italy, Kyrgyz Republic, Lebanon, Romania, 
Russian Federation, Chinese Taipei, Turkmenistan , Ukraine, the United Kingdom, the United States 
and Vietnam.  Agreements on customs relations were intended to ensure  cooperation and smooth 
working relations between the customs services of th e signatories.  Such agreements had also been 
signed with Georgia, Iran, Tajikis tan, Turkmenistan and Ukraine. 
211. In response to further requests for clarification of the compatibility of Armenia's free trade 
agreements with the CIS States with Article XX IV of the GATT 1994, the representative of Armenia 
stated that within the framework of the 1994 Free-Trade Agreement among the countries of the 
Commonwealth of Independent States (CIS), Ar menia’s plurilateral and bilateral free-trade 
agreements eliminated duties and other restrictive regulations on substantially all trade between the 
parties.  Armenia considered that these arrangements were consistent with Article XXIV of GATT 
1994.  He noted that at present Armenia did  not c onduct trade with all  CIS countries, but in respect 
of those countries with which Armenia did trade,  Armenia imposed no taxes nor barriers on its 
imports and exports of goods.  These agre ements did not cover trade in services. 
212. The representative of Armenia confirmed that Armenia would observe the provisions of the 
WTO Agreement including Article XXIV of the GA TT 1994 and Article V of the GATS in its trade 
agreements, and that it would ensure that the prov isions of these WTO Agreement for notification, 
consultation, and other requireme nts concerning preferential trading systems, free trade areas, and 
customs unions of which Armenia was a member were met from the date of accession. He confirmed 
that Armenia would, upon accession, submit notifi cations and copies of its free-trade area and 
customs union agreements to the Committee on Regi onal Trade Agreements (CRTA).  He further 
confirmed that any legislation or regulations require d to be altered under its  trade agreements would 
remain consistent with the provisions of the WT O and would, in any case, be notified to the CRTA 
during its examination.  The Working Party took note of these commitments. 
- Plurilateral trade agreements 
213. The representative of Armenia informed the Work ing Party that the Government of Armenia 
would join the Agreement on Trade in Civil Airc raft reflecting corresponding tariff commitments in 
its Schedule of Concessions on Trade in Goods. The Working Party took note of these commitments. 
- Transparency - Publication of Information 
214. Some members of the Working Party requested th at the Government of Armenia confirm that 
from the date of accession, all laws, regulations, ruli ngs, decrees or other measures related to trade in WT/ACC/SPEC/ARM/1/Rev.8 
Page 82  
 
 goods or services would be published in its official publication for public review at least two weeks 
prior to implementation, unless a longer period w as specified under the relevant WTO Agreement.  
215. The representative of Armenia confirmed that, from the date of accession, all laws, 
regulations, rulings, decrees or other measures re lated to trade in goods or services would be 
published in its official publication for public revi ew at least two weeks prior to implementation, 
unless a longer period was specified under the relevant WTO Agreement,  and that no law, rule, etc., 
related to trade in goods and services would become e ffective prior to such publication.  He further 
stated that Armenia would fully implement Article  X of the GATT 1994, and Article III of the GATS 
and the other transparency requirements of WTO Ag reements requiring notification and publication. 
The Working Party took no te of these commitments. 
Notifications   
216. The representative of Armenia said that by Decree No. 321 of the Government of the 
Republic of Armenia of 17 June 2000 the "WTO No tification Agency in the Republic of Armenia" 
had been established and was now operational.  Th e Agency operates within  the structure of the 
Ministry of Trade and Economic Development with the mandate to submit and receive notifications 
related to the WTO Agreements, including appropria te comments, the preparation of responses, the 
organisation of consultations etc..  The internet  address was www.wtonc.am, and contact information 
for the Agency was as follows:  email:  wtonc@wtonc.a m, fax no. (374 1) 543 983, tel. no. (374 1) 
543 981 and 543 982. 
217. The representative of Armenia said that at the la test upon entry into force of the Protocol of 
Accession, Armenia would submit all initial notifica tions required by an Agreement constituting part 
of the WTO Agreement.  Any regula tions subsequently enacted by Arme nia which gave effect to laws 
enacted to implement any Agreement constituting part  of the WTO Agreement would also conform to 
the requirements of that Agreement. The Wo rking Party took note of these commitments.  
Conclusions 
218. The Working Party took note of the explanati ons and statements of Armenia concerning its 
foreign trade regime, as reflected in this report.  The Working Party took note of the commitments 
given by Armenia in relation to certain specific ma tters, which are reproduced in paragraphs [23, 29, 
34, 36, 37, 47, 53, 54, 60, 64, 65, 70, 72, 73, 80, 86, 87, 97, 101, 102, 104, 106, 112, 115, 119, 135, 
136, 143, 144, 148, 150, 153, 156, 166, 193, 197, 212, 213, 215 and 217] of this Report.  The Working Party took note that these commitments had been  incorporated in paragraph 2 of the Protocol 
of Accession of the Republic of Armenia to the WTO.  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 83 
 
 
 219. Having carried out the examination of the foreign trade regime of Armenia and in the light of 
the explanations, commitments and concessions made by the representatives of Armenia, the Working 
Party reached the conclusion that, Armenia should be  invited to accede to the Agreement Establishing 
the WTO pursuant to the provisions of Article XII.  For this purpose the Working Party has prepared 
the draft Decision and Protocol of Accession reprodu ced in the Appendix to this report,  and takes 
note of the Republic of Armenia's Schedule of Specific Commitments on Services (document ... ) and 
its Schedules of Concessions and Commitments on Ag riculture and Goods (document ... )  that are 
attached to the Protocol of Accession.  It is pr oposed that these texts be approved by the General 
Council when it adopts the Report.  When the Deci sion is adopted, the Protocol of Accession would 
be open for acceptance by the Republic of Armenia, which would become a Member thirty days after 
it accepts the said Protocol. The Working Party agr eed, therefore, that it had completed its work 
concerning the negotiations for the accession of  the Republic of Armenia to the Agreement 
Establishing the WTO. 
_______________ 
 
 WT/ACC/SPEC/ARM/1/Rev.8 
Page 84  
 
 ANNEX I  
(paragraph 133 refers) 
 The List of Products Subject to Mandatory Conformity Assessment approved by the Decree 
No. 239 of the Government of Armenia of 12 May, with Amendments Approved by Decree No. 110 
of 17 February 2001, Decree No. 297 of 12 Apr il 2001 and Decree No. 825 of 6 September 2001. 
 
Description CN code 
Meat of bovine animals, frozen. 0202 
Meat of swine, frozen 020321-020329 
Edible offal of bovine animals and swine, frozen 020621 000, 020622, 020641 
Meat and edible offal of poultry, frozen 020712, 020714, 020725, 020727,  
020733, 020736 
Pig fat 020900 110 
Meat and edible meat offal, salted, in brine, dried or smoked 0210 
Fish, fish meat, frozen, dried, salted, smoked 0303, 030420, 0305 
Milk and milk products 0401, 0402, 040310, 040510, 040590, 0406 
Birds' eggs 040700 
Natural honey 040900 000 
Peas, chickpeas, lentils 0713-071340 
Bananas, dates, pineapples, dried grapes, melons, dried fruit 080300, 080410 000, 080430 000,  
0805, 080620, 0807, 0813 
Coffee, tea 0901, 0902 
Rice 1006 
Cereal flours 110100, 1103 
Soya-bean, olive, sunflower-seed, maize oil 150710 900, 150990 000,  
151219 910, 151529 900 
Animals and Vegetable fats and oils, margarine 1516, 1517 
Preparations of meat, fish or crustaceans, molluscs and other aquatic invertebrates 1601-1605 
Sugar, sugar confectionery 1701, 170290, 1703, 1704 
Cocoa, preparations containing cocoa 180500 000, 1806 
Infant food 190 110 000 
Preparations of cereals, flour, starch and milk, pastry cooks' 
products 1902-1905 (ex. 190590 300) 
Preparations of vegetables, fruit, nuts or other parts of plants 2001-2009 
Miscellaneous edible preparations, yeast, ice-cream, cheese 
fondues 2101-2105, 210690 100 
Beverages, spirits and vinegar 2201-2209 
Tobacco and manufactured t obacco substitutes 2401-2403 
Table salt 250 100 910 
Natural sands of all kinds, whether or not coloured 2505 
Road-metal used for concrete  251 710 100 
Portland cement, not coloured and pozzolanic  252321 000, 252390 300 
Oil products 2707, 2710, 2711 
Fertilizers 3102-3105 
Paints 3208, 3209 
Perfumes, beauty or make-up preparations and preparations for 
use on the hair, preparations for oral hygiene, shaving, deodorants 
and antiperspirants  3303-3306, 330710 000, 330720 000 
Soap, washing and cleaning preparations 3401, 3402 20, 3402 90 
Modelling pastes, preparations for use in dentistry 340 700 000 
Photographic plates for medical X-ray use 370 110 100 
Hydraulic brake, anti-freezing fluids and their components 3819 00 000, 382000 000  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 85 
 
 
 Description CN code 
Articles of plastics for the conv eyance, packing, tableware and 
kitchenware  392310-392330, 392410 000 
Pneumatic tires of a kind used on motor cars, lorries and buses 401110 000, 401120 
Retreated or used pneumatic tires  4012 
Contraceptives, teats for babies 401410 000, 401490 100 
Surgical gloves 401 511 000 
Household and sanitary articles of paper, cellulose wadding or 
webs of cellulose fibres, cotton 481810, 481820, 481840, 560110 
Men's, women's and children's pyjamas, underpants, knitted or 
crocheted 6107-6109, 6207, 6208 
Babies' garments, knitted or crocheted 6111, 6209 
Brassieres, girdles, corset s and similar articles 6212 
Bars, hot-rolled, in irregularly w ound coils, of iron or non-alloy 
steel, of circular cros s-section measuring less than 14 mm in 
diameter, for reinforced concrete 721 391 100 
Bars and rods, hot-rolled, for reinforced concrete 721 499 100 
 Electrodes and cored wire of base metal, for electric arc-welding 831110 900, 831120 000 
Electro-mechanical domestic a ppliances 8509 ( ex. 850990) 
Electro-shavers, hair clippers  851010 000, 851020 000 
Domestic electric heating appara tus, water heaters, immersion 
heaters 8516 (ex. 851680, 851690) 
Line telephone sets with cordless handsets 8517 11 000 
-Telephonic or telegraphic switching  
apparatus 8517 30 000 
Other apparatus, for carrier-current line systems or for digital line 
systems 8517 50 
Parts 0f apparatus for carrier-current line systems of subheading 
8517 50 100 851790 
Transmitting or receiving a pparatus for radiotelephone, 
radiotelegraph communication, radio and television 8525 10 900; 8525 20 910; 8525 20 990 
Aerials and aerial reflectors of a ll kinds; parts suitable for use 
therewith 8529 10 (8529 10 100; 8529 10 400;  
8529 10 500) 
Electric signalling apparatus for burglar or fire alarms 853 110 300 
Electric apparatus for switching, protecting electric circuits, for 
making connections to or in electric circuits 853620 100, 853641, 853650,  
(ex. 8536 50 900)  853661, 853669, 853690 
Electric lamps 853922, 853931 
Electric cables and wires 8544 20 000, 8544 41 100, 8544 49 200,  
854 459 800, 8544 70 000 
Syringes of plastics, with or without needles 901 831 100 
Revolvers and pistols, other than those of heading No. 93.03 or 93.04 9302 00 
Plain-barrel single-barrelled sporting and hunting guns From 9303 20 800 
Plain-barrel double-barrelled sporting and hunting guns From 9303 20 800 
Combined guns From 9303 20 800 
Rifled sporting and hunting gun From 93 03 30 000 
Gas pistols and revolvers using cartridges charged with tear or 
stimulant substances From 9303 90 000 
Signal flares and other devises for 
 lunching of signal flares From 9303 90 000 
Aerosol devises (gas cylinders), sprayers charged with tear or 
stimulant substances From 9304 00 000 
Pneumatic and gas arms, as well as spring arms From 9304 00 000 
Cartridges for riveting or similar tools or for captive-bolt humane 
killers and parts thereof From 9306 10 000 
Cartridges  From 9306 21 000 WT/ACC/SPEC/ARM/1/Rev.8 
Page 86  
 
 Description CN code 
Shot cartridge cases From 9306 29 400 
Bullets for pneumatic arms From 9306 29 700 
Wads for cartridges for hunting and sporting arms From 9306 29 700 
Little bullets, shot and grape-shot  From 9306 29 700 
From 9306 30 100 
From 9306 30 980 
Bullets for cartridges for rifled and plain- barrel arms From 9306 29 700 
From 9306 30 100 From 9306 30 300 
From 9306 30 980 
Cartridges for gas pistols and revolvers  From 9306 30 910  
From 9306 30 930  
Cartridges and rockets for signal arms From 9306 30 910  
From 9306 30 930 
Swords, cutlasses, bayonets, lances and similar arms and parts thereof and scabbards and sheaths therefore 9307 00 000 
metal prefabricated building structures  
(reinforced preparations, bush parts welded on, their connections 
for ferro-concrete structures) 940 600 390 
prefabricated building ferr o-concrete structures  
(logs for coverings and anvils, posts, slide-valves, farms) 94 06 00 900 
Toys 9502, 9503 (ex. 950291 000, 950299 000) 
Gas fuelled 961 310 000 
  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 87 
 
 
 ANNEX II  
(paragraph 63 refers) 
 The list of products (given below), imported by  organizations and private entrepreneurs, that 
have “0” Customs Duty rate and are not subject to  excise taxation and for which value added tax shall 
not be calculated and levied by Customs Author ities Approved by Law “On approval of list of goods, 
imported by organizations and priv ate entrepreneurs, that have “0” Customs Duty rate and are not 
subject to excise taxation and for wh ich value added tax shall not be calculated and levied by Customs 
Authorities” Adopted on 29 June 2001.  
 
HS Code Brief description of goods 
01 Live animals 
040811800 Egg powder 
070110 Seed potatoes 
100190100 Spelt for sawing 
100300100 Rye seeds 
1005 Corn 
1107 Malt 
1108 Inulin 
12 
 Oil seeds and oleaginous fruits; miscellane ous grains, seeds and fruit; industrial and 
medicinal plants; straw and fodder, with the exception of   
120600 Sunflower seeds 
1301 Gums, resins, vegetable saps and extracts, like balms  
151530100 Castor oil 
1703 Syrup  
1801 Cocoa seeds, ground, dried or roast 
2102 Yeasts (active or inactive); other single -cell microorganisms, dead (but not including 
vaccines of heading No. 30.02) ; prepared baking powders 
23 Residues and waste from the food industries; pr epared animal fodder, with the exception of 
230910 Dog or cat food, put up for retail sail 
2401 Unmanufactured to bacco, tobacco refuse 
250100100 Sea water and salt in solutions 
250100510 Other salt (including table salt and denature d salt) and pure sodium chloride, whether or not 
in aqueous solution, as well as with additions that prevent clamminess of particles and insure 
fluidity of liquid salts, whether denatured or for industrial purposes (incl. refinement) except 
for canning and human or animal food production 
250300 All types of sulfur, except sublimated, residual and colloidal sulfur 
250510 Silicate sand and quartz sand 
250830 Fireproof clay 
2512 Siliceous fossil meals (for example, kieselguhr, tripolite and diatomite) and similar siliceous 
earths, whether or not calcined, of an apparent specific gravity of 1 or less 
251910 Natural magnesium carbonate  (magnezite)  
251990100 Magnesium oxides, except for calcined natural magnesium carbonate 
2520 Gypsum, anhydride, plasters (consisting of calcined gypsum or calcium sulfate), whether or 
not colored, with or without small quan tities of accelerators or retarders.    
252890000 Other (not sodium) borates, natural or concentrates thereof, but not including borates 
separated from natural brine, natural boric acid containing more than 85% of H 3BO 3 , 
calculated on the dry weight 
26 Ores, slag and ash 
270720900 Toluene, others not used as fuel  
271000260 Aircraft fuel 
271000510 Jet aircraft fuel 
271000820 Aircraft lubricants  WT/ACC/SPEC/ARM/1/Rev.8 
Page 88  
 
 HS Code Brief description of goods 
271121 Natural gas 
271220 Paraffin 
271290 Cerezine  
2716 Electrical energy 
28 Products of chemical industry 
29 Organic chemicals  
3001 Glands and other organs for organo-therapeutic uses, dried, whether or not powdered; 
extracts of glands or other organs or of their secretions for organo-therapeutic uses; heparin and its salts; other human and animal substan ces prepared for therap eutic or prophylactic 
uses, not elsewhere sp ecified or included 
3002 Human blood, animal blood prepared for therapeutic or diagnostic uses; antisera and other 
blood fractions; vaccines, toxi ns, cultures of microorganisms (excluding yeasts) and similar 
products 
3006 Sterile surgical substances for putting in stitc hes, sterile textiles for surgical covering of cuts, 
sterile subduing and blood stopping means used in surgery and dental treatment, opacifying 
preparations for X-ray examinations and diagnos tic reagents designed to be administered to 
the patient, being unmixed products put up in measured doses or products consisting of two 
or more ingredients which have been mixed together for such uses, blood-grouping reagents, 
dental cements and other dental fillings, bone reconstruction cements, first aid boxes and kits, chemical contraceptive preparations ba sed on hormones or spermicides      
31 Fertilizers 
3202 Tanning organic substances: synthetic, tanning inorganic substances: tanning preparations, 
containing or not containing natural tanning substances, ferment preparations for preliminary 
tanning   
320300900 Pigments of animal origin and preparations thereof 
320642 White barite and other pigments and preparations on zinc sulfate base   
32065000 Luminaphores  
321410100 Glazier’s putty, grafting putty, resin cements, caulking compounds and other mastics 
330210 Fragrances and blends used in food and drinks industry 
330290900 Other fragrances and blends not mentioned under code 3302  
35 Albuminoidal substances; modified starches; glues; enzymes, with the exception of 
3505 Dextrins and other modified starches (for ex ample, pregelatinized or esterified starches), 
glues based on starches, or on dextrins or other modified starches    
3506 Prepared glues or other prepared adhesives, not elsewhere specified or included; products 
suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1 kg  
3601100 Propellant powders 
360200 Prepared explosives, other than propellant powders  
360300 Safety fuses, detonating fuses, percussion or detonating caps, igniters, electric detonators   
360490 Signalling flares, rain rockets, fog signals and other pyrotechnic articles  
370110100 Photographic plates for X-ray used for medical, dental or veterinary uses, sensitized, 
unexposed, instant print film on the flat, sensitized, unexposed, whether or not in packs 
370790300 Other chemical preparations for photographic uses, put up in measured portions or put up for 
retail sale in a form ready for sale 
38 Miscellaneous chemical products, other than 
3804 Residual lyes from the manufactures of wood pulp, whether or not concentrated, desugared 
or chemically treated, including lignin sulphonates, but excluding tall oil of heading No. 
38.03 
3816 Refractory cements, mortars, concretes and similar compositions, other than products of 
heading No. 38.01 
3819 Hydraulic break fluids and other prepared liquids for hydraulic transmission, not containing 
or containing less than 70% by weight of petroleum oils or oils obtained from bituminous 
minerals  
3820 Anti-freezing prep arations and prepared de-icing fluids 
3901 Polymers of ethylene, in primary forms 
3902 Polymers of propylene or of other olefins, in primary forms  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 89 
 
 
 HS Code Brief description of goods 
3903 Polymers of styrene, in primary forms 
3904 Polymers of vinyl chloride or of other halogenated olefins, in primary forms 
3905 Polymers of vinyl acetate or of other vinyl esters, in primary forms; other vinyl polymers in 
primary forms 
3906 Acrylic polymers in primary forms 
3907 Polyacetals, other polyethers and epoxide re sins, in primary forms;  polycarbonates, alkyd 
resins, polyallyl esters and other polyesters, in primary forms 
3908 Polyamides in primary forms 
3909 Amino-resins, phenolic resins and polyurethanes, in primary forms 
3910 Silicones in primary forms 
3911 Petroleum resins, coumarone-indene resins, polyterpenes, polysulphides, polysulphones and 
other products specified in Note 3 to this Chapter, not elsewh ere specified or included, in 
primary forms 
3912 Cellulose and its chemical derivatives, not el sewhere specified or incl uded, in primary forms 
3913 Natural polymers (for exampl e, alginic acid) and modified natural polymers (for example, 
hardened proteins, chemical derivatives of natural rubber), not elsewhere specified or 
included, in primary forms 
3914 Ion-exchangers based on polymers of headings Nos. 3901 to 39.13, in primary forms 
3915 Waste, parings and scrap, of plastics 
391710 Artificial guts (sausage casings) of hardened protein or of cellulosic materials 
391910150 Self-adhesive plates, sheets, film, foil, tape strip and other flat shapes, of plastics, whether or 
not in rolls, of polypropylene  
391910900 Self-adhesive plates, sheets, film, foil, tape strip and other flat shapes in rolls of a width not 
exceeding 20 cm, whether or not chemically modified by regroupi ng from products of 
thickening and polymerization 
392020210 Plates, sheets, film, foil, tape strip and other flat shapes of ethylene polymers, non-cellular 
and not reinforced, laminated, supported or similarly combined with other materials 
392020290 Plates, sheets, film, foil, tape strip and other flat shapes of propylene polymers, non-cellular 
and not reinforced, laminated, supported or similarly combined with other materials 
392061000 Plates, sheets, film, foil, tape strip and other flat shapes of polycarbonates, non-cellular and 
not reinforced, laminated, supported or similarly combined with other materials 
392071190 Sheets, foil or tape strip of regenerated cellulose, whether compressed or not, of a width not 
exceeding 0.75 cm, with a printed logo  
392190300 Plates, sheets, film, foil, tape strip of phenolic resins  
392190410 Plates, sheets, film, foil, tape strip of amino-resins, laminated under high pressure, with one 
or both sides decorated 
392190900 Other plates, sheets, film, foil, tape strip, of plastics, not specified in other subheading of 
heading No. 392190 
4001 Natural rubber, balata, gutta-percha, guayul e, chicle and similar natural gums, in primary 
forms or in plates, sheets or strip 
4002 Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets or strip; 
mixtures of any product of heading No. 4001 with any product of this heading, in primary 
forms or in plates, sheets or strip (or film) 
4003 Reclaimed rubber in  primary forms or in plates, sheets or strip 
4005 Compounded rubber, unvulcanized, in primary forms or in plates, sheets or strip 
4006 Other forms (for example, rods, tubes and profile shapes) and articles (for example, discs 
and rings), of unvulcanized rubber 
4007 Vulcanized rubb er thread and cord 
4008 Plates, sheets, strip, rods and profile shapes of vulcanized rubber, other than hard rubber 
4009 Tubes, pipes and hoses, of vulcanized rubber other than hard rubber, with or without their 
fittings (for example, joints, elbows, flanges) 
4010 Conveyor or transmission belts or belting, of vulcanized rubber 
401130100 Pneumatic tires of a kind used on civil aircraft 
4014 Hygienic or pharm aceutical articles (including teats), of vulcanized rubber other than hard 
rubber, with or without fitting of hard rubber 
401511 Surgical gloves of rubber WT/ACC/SPEC/ARM/1/Rev.8 
Page 90  
 
 HS Code Brief description of goods 
41 Raw hides and skins and leather 
4301 Raw furskins (including heads, tails, paws and other pieces or cuttings suitable for furriers’ 
use), other than raw hides and skins of heading No. 4101, 4102 or 4103 
4302 Tanned or dressed furskins (including he ads, tails, paws and other pieces or cuttings), 
unassembled, or assembled (without the addition of other materials), other than those of 
heading No. 4303 
4403 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared 
4404 Hoopwood’ split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; 
wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking sticks, umbrellas, tool handles or the like; chipwood and the like 
4406 Railway or tramway sleep ers (cross-ties) of wood 
4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-
jointed, of a thickness exceeding 6 mm 
4408 Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn 
lengthwise, sliced or peeled, sanded or fi nger-jointed, of a thickness exceeding 6 mm 
4409 Wood (including strips and friezes for parque t flooring, not assemble d) continuously shaped 
(tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) 
along any of its edges or faces, whether or not planed, sanded or finger-jointed 
441019500 Board of ligneous material agglomerated with melamine resins and similar boards of 
ligneous materials 
4801 Newsprint, in rolls or sheets 
480540000 Other uncoated paper and paperboard, in rolls or sheets, whether or not processed 
480570190 Other paper and paperboard, weighing more than 150 g/m2 but less than 225 g/m2 for tear 
4810 Paper and paperboard, coated in one or both sides with kaolin (China clay) or other 
inorganic substances, with or without a binder, and with no other coating, whether or not 
surface-colored, surface-decorated or printed, in rolls or sheets 
481190100 Printed forms of paper, paperboard, cellulose wadding and webs of cellulose fibres, not cut 
481200000 Filter blocks, slabs and plates of paper pulp 
4813 Cigarette paper, whether or not cut to size or in the form of booklets or tubes 
482311110 Strips of width not ex ceeding 10 cm, coated with vulcani zed rubber, whether natural or 
synthetic, self-adhesive on one side 
482340000 Rolls, sheets and dials, printed for self-recording apparatus 
482390500 Other products of paper or paperboard, sized or shaped 
49 Printed books, newspapers, pictures and other products of the printing industry; manuscripts, 
typescripts and plans 
5002 Raw silk (not thrown) 
5004 Silk yarn (other than yarn spun from silk waste) not put up for retail sale 
5005 Yarn spun from silk waste, not put up for retail sale 
51 Wool, fine or coarse animal hair; horsehair yarn and woven fabric 
52 Cotton 
53 Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn 
54 Man-made filaments, with the exception of 
5407 Woven fabrics of synthetic filament yarn 
5408 Woven fabrics of artificial filament yarn 
55 Man-made staple fibres 
56 Wadding, felt and nonwovens, special yarns, twine, cordage and ropes  
5801 Woven pile fabrics and chenille fabrics, other than  fabrics of heading No. 5802 or 5806 
60 Knitted or crocheted fabrics 
6406 Parts of footwear 
681290100 Fabricated asbestos fibres, mixtures with a basis of asbestos or with a basis of asbestos and 
magnesium carbonate, articles of such mixtures or of asbestos (for example, thread, woven 
fabric, clothing, headgear, footwear, gaskets), whether or not reinforced, other than goods of 
heading No. 6811 or 6813, for civil aircraft 
70 Glass and glassware, with the exception of 
7004 Drawn glass and blown glass, in sheets, whether or nor having an absorbent or reflecting 
layer, but not otherwise worked  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 91 
 
 
 HS Code Brief description of goods 
7005 Float glass and surface grou nd or polished glass, in sheet s, whether or not having an 
absorbent or reflecting layer, but not otherwise worked 
7006 Glass of heading No. 7003, 7004 or 7005, bent, edge-worked, engraved, drilled, enamelled 
or otherwise worked, but not framed or fitted with other materials 
700711100 Safety glass, consisting of toughened (tempered) or laminated glass of size and shape 
suitable for incorporation in vehicles 
7009 Glass mirrors, whether or not framed, including rear-view mirrors 
7013 Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar 
purposes (other than of heading No. 7010 or 7018) 
7016 Paving blocks, slabs, bricks, squares, tiles and other articles of pressed or moulded glass, 
whether or not wired, of a kind used for building or construction purposes; glass cubes and 
other glass smallwares, whether or not on a backing, for mosaics or similar decorative 
purposes; leaded lights and the like; multicellular or foam glass in blocks, panels, plates, shells or similar forms 
7018 Glass beads, imitation pearls, imitation precious or semi-precious stones and similar glass 
smallwares, and articles thereof other than imitati on jewelry; glass eyes other than prosthetic 
articles; statuettes and other ornaments of lamp-worked glass, other than imitation jewelry; glass microspheres not exceeding 1 mm in diameter 
71 Pearls, precious and semi-precious stones, precious metals and articles thereof, imitation 
jewelry; coin, with the exception of 
7101 Pearls 
7113 Articles of jewelry and pa rts thereof, of precious metal 
7114 Articles of goldsmiths’ or silversmiths’  wares and parts thereof, of precious metal 
7115 Other articles of precious metal 
7117 Imitation jewelry 
7118 Coin 
72 Base metals and articles of base metal 
73 Articles of iron and steel, with the exception of 
730830 Doors, windows and their frames and thresholds for doors 
7319 Sewing needles, knitting needles, bodkins, crochet hooks, embroidery stilettos and similar 
articles, for use in the hand, of iron and steel; safety pins and other pins of iron and steel, not 
elsewhere specified or included 
7321 Stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), 
barbecues, braziers, gas-rings, plate warmers and similar non-electric domestic appliances, 
and parts thereof, of iron and steel 
7322 Radiators for central heating, not electrically heated, and parts thereof, of iron and steel; air 
heaters and hot air distributors (including distributors which can also distribute fresh or 
conditioned air), not electrically  heated, incorporating a motor-driven fan or blower, and 
parts thereof, of iron and steel 
7323 Table, kitchen or other household articles and parts thereof, of iron and steel; iron or steel 
wool; pot scourers and scouring or polishing pads, gloves and the like, of iron and steel 
7324 Sanitary ware and parts thereof, of iron and steel 
7325 Other cast articles of iron and steel 
7326 Other articles of iron and steel 
74 Copper and articles thereof 
7417 Cooking or heating apparatus of a kind used for domestic purposes, non-electric, and parts 
thereof, of copper 
7418 Table, kitchen or other household articles and parts thereof, of copper; pot scourers and 
scouring or polishing pads, gloves and the like, of copper; sanitary ware and parts thereof, of 
copper 
7419 Other articles of copper 
75 Nickel and articles thereof 
76 Aluminium and articles thereof, with the exception of 
7610 Aluminium structures (excluding prefabricated buildings of heading No. 9406) and parts of 
structures (for example, bridges and bridge sections, towers, lattice masts, roofs, roofing 
frameworks, doors and windows and their balustrades, pillars and columns); aluminium WT/ACC/SPEC/ARM/1/Rev.8 
Page 92  
 
 HS Code Brief description of goods 
plates, rods, profiles, tubes and the lik e, prepared for us e in structures 
7615 Table, kitchen or other household articles and parts thereof, of aluminium; pot scourers and 
scouring or polishing pads, gloves and the like, of aluminium; sanitary ware and parts 
thereof, of aluminium 
7616 Other articles of aluminium and parts thereof 
78 Lead and articles thereof 
79 Zinc and articles thereof 
80 Tin and articles thereof 
81 Other base metals; cermets; articles thereof 
830140110 Cylinder-like locks for entrance doors of buildings 
830140190 Other locks for entrance doors of buildings 
84 Nuclear reactors, boilers, machinery and mech anical appliances; part s thereof, with the 
exception of 
8415 Air conditioning machines, comprising a motor-driven fan and elements for changing the 
temperature and humidity, including those machines in which the humidity cannot be separately regulated 
8418 Refrigerators, freezers and ot her refrigerating or freezing equi pment, electric or other; heat 
pumps other than air conditioning machines of heading No. 8415 
845011 Household or laundry-type washing machines, including machines which both wash and dry, 
fully automatic, each of a dry linen capacity exceeding 10 kg 
845012 Household or laundry-type washing machines, including machines which both wash and dry, 
with built-in centrifugal drier, each of a dry line n capacity exceeding 10 kg 
845019 Other household or laundry-type washing machines, including machines which both wash 
and dry, each of a dry linen  capacity exceeding 10 kg 
8469 Typewriters and word-processing machines 
8470 Calculating machines; acco unting machines, cash registers,  postage-franking machines, 
ticket-issuing machines and similar machines, incorporating a calculating device 
8472 Other office machines (for example, hectograph or stencil duplicating machines, addressing 
machines, automatic banknote di spensers, coin sorting machines, coin-counting or wrapping 
machines, pencil-sharpeni ng machines, perforating or stapling machines) 
8473 Parts and accessories (other than covers, carry ing cases and the like) suitable for use solely 
or principally with machines of headings Nos. 8469 to 8472  
8476 Automatic goods-vending machines (for example, postage stamp, cigarette, food or beverage 
machines), including m oney changing machines 
8481 Taps, cocks, valves and simi lar appliances for pipes, boiler shells, tanks, vats or the like, 
including pressure-reducing valves an d thermostatically controlled valves 
841581100 
841582100 
841583100 
841590100 Air conditioning machines, comprising a motor-driven fan and elements for changing the 
temperature and humidity, including those machines in which the humidity cannot be 
separately regulated, for use on civil aircraft 
841810100 
841830100 
841840100 
841861100 841869100 Refrigerators, freezers and other refrigerating or freezing equipm ent, electric or other; heat 
pumps other than air conditioning machines of heading No. 8415, for use on civil aircraft 
847330 Parts and accesso ries of the machines  of heading No. 8471 
8501 Electric motors and generators (excluding generating sets) 
8502 Electric generating sets and rotary converters 
8503 Parts suitable for use solely or principally with the machines of heading No. 8501 or 8502 
8504 Electrical transformers, st atic converters (for exampl e, rectifiers) and inductors 
8505 Electro-magnets; permanent magnets and articles intended to become permanents magnets 
after magnetization; electro-magnetic or permanent magnet chucks, champs and similar holding devices; electro-magnetic couplings, cl utches and brakes; electro-magnetic lifting 
heads 
850710100 
850720100 Electric accumulators and parts ther eof, for use on civil aircraft  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 93 
 
 
 HS Code Brief description of goods 
850730100 
850740100 850780100 
850790100 
8511 Electrical ignition or starting equipment of a kind used for spark-ignition or compression-
ignition internal combustion engines; generators (AC/DC) and cut-outs of a kind used in 
conjunction with such engines 
8515 Electric (including electrically heated gas), laser or other light or photon beam, ultrasonic, 
electron beam, magnetic pulse or plasma arc soldering, brazing or welding machines and 
apparatus, whether or not capable of cutti ng; electric machines and apparatus for hot 
spraying of metals or sintered metal carbides 
851621 Storage heating radiators 
851629 Other electric space heating a pparatus and soil heating apparatus 
851680100 Electric heating resistors used on civil aircraft 
851810100 
851821100 
851822100 851829100 
851830100 
851840100 851850100 Microphones and stands thereof;  loudspeakers, whether or not mounted in their enclosures; 
headphones, earphones and combined microphone/speaker sets; audio-frequency electric 
amplifiers; electric sound amplifier sets, used on civil aircraft 
852090100 Products of subheading No. 852090, used on civil aircraft 
852110100 Magnetic tape-type video recording or reproducing apparatus, with video tuners, whether 
combined or not, used on civil aircraft 
852290100 Blocks and joints comprised of 2 and more connected or joint parts or components, for 
apparatus of subheading 852090 
852510 Transmission apparatus 
852520100 Transmission apparatus for radio-telephony and radio-telegraphy, used on civil aircraft 
8526 Radar apparatus, radio navigational aid apparatus and radio remote control apparatus 
852790100 Receptio n apparatus for radio-telephony and radi o-telegraphy, used on civil aircraft 
852910100 Aerials and aerial reflectors of all kinds; parts suitable for use therewith, used on civil 
aircraft 
852990100 Blocks and sub-blocks comprised of one or more parts included in sub-subheadings 
85261010, 85269111, 85269119 and 85269210, used on civil aircraft  
8530 Electrical signalling, safety  or traffic control equipment for railways, tramways, roads, 
inland waterways, parking facilities, port insta llations or airfields (other than those of 
heading No. 8608) 
8531 Electric sound or visual signalling apparatus (for example, bells, sirens, indicator panels, 
burglar or fire alarms), other than those of heading No. 8512 or 8530 
8532 Electrical capacitors, fixed, va riable or adjustable (pre-set) 
8533 Electrical resistors (including rheostats and potentiometers), other than heating resistors 
8534 Printed circuits 
8535 Electrical apparatus for switching or protecting electrical circuits, or for making connections 
to or in electrical circuits (for  example, switches, fuses, lightni ng arresters, voltage limiters, 
surge suppressors, plugs, junction boxes), for a voltage exceeding 1000 volts 
8537 Boards, panels (including numerical control panels), consoles, desks, cabinets and other 
bases, equipped with two or more apparatus of heading No. 8535 or 8536, for electric 
control or the distribution of electricity, including those incorporating instruments or 
apparatus of Chapter 90, other than switching apparatus of heading No. 8517 
8538 Parts suitable for use solely or principally with the apparatus of heading No. 8535, 8536 or 
8537 
853910100 Sealed beam lamp s used on civil aircraft 
8541 Diodes, transistors and similar semi-conductor devices; photosensitive semi-conductor 
devices, including photovoltaic cells whether or not assembled in modules or made up into 
panels; light emitting diodes; mounted piezo-electric crystals  
8542 Electronic integrated ci rcuits and micro assemblies WT/ACC/SPEC/ARM/1/Rev.8 
Page 94  
 
 HS Code Brief description of goods 
854389100 Flight variables recorders used on civil aircraft 
8545 Carbon electrodes, carbon brushes, lamp carbons and other articles of graphite or other 
carbon, with or without metal, of a kind used for electrical purposes 
8546 Electrical insulato rs of any materials 
8547 Insulating fittings for electrical machines, app liances or equipment, being fittings wholly of 
insulating material apart from any minor components of metal (for example, threaded 
sockets), incorporated during moulding solely for purposes of assembly, other than 
insulators of heading No. 8546;  electrical conduit tubing and jo ints thereof, of base metal 
lined with insulating material 
8548 Electrical parts of machinery or apparatus,  not specified or included elsewhere in this 
Chapter 
86 Railway or tramway locomotives, rolling-stock and parts thereof 
8701 Tractors 
870390100 Vehicles with electric engine (trolleys) 
8704 Motor vehicles for the transport of goods 
8705 Special purpose motor vehicles, other than those principally designed for the transport of 
persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixer lorries, road sweeper lorries, spraying lorries, mobile work-shops, mobile 
radiological units) 
8709 Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used 
in factories, warehouses, dock areas or airports  for short distance transport of goods; tractors 
of the type used on railway station platforms; parts of the foregoing vehicles 
8710 Tanks and other armored fighting vehicles, motorized, whether or not fitted with weapons, 
and parts of such vehicles 
8713 Invalid carriages 
8714 Parts and accessories of invalid carriages 
88 Aircraft, spacecraft and parts thereof 
89 Ships, boats and floating structures 
9001 Optical fibres and optical fibre bundles; op tical fibre cables other than those of heading No. 
8544; sheets and plates of polarizing material; lenses (including contact lenses), prisms, 
mirrors and other optical elements, of any material, unmounted, other than such elements of 
glass not optically worked 
9002 Lenses, prisms, mirrors and other optical elements, of any material, mounted, being parts of 
or fittings for instruments or apparatus, other than such elements of glass not optically 
worked 
9006 Photographic (other than cinematographic) cameras; photographic flashlight apparatus and 
flashbulbs other than discharge lamps of heading No. 8539 
9007 Cinematographic cameras and projectors, whether or not incorporating sound recording or 
reproducing apparatus 
9011 Compound optical microscopes, including those for microphotography, 
microcinematography or microprojection 
9012 Microscopes other than optical microscopes; diffraction apparatus 
9013 Liquid crystal devices not constituting articles provided for more specifically in other 
headings; lasers, other than laser diodes; other optical appliances and instruments, not specified elsewhere in this Chapter 
9014 Direction finding compasses; other navigational instruments and appliances 
9015 Surveying (including photogrammetrical surveying), hydrographic, oceanographic, 
hydrological, meteorological or geophysical instruments and appliances, excluding compasses; rangefinders 
9016 Balances of a sensitivity of 5 cg or better, with or without weights 
9017 Mechanical calculating apparatus 
9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including 
scintigraphic apparatus, other electro-medical apparatus and sight-testing equipment 
9019 Mechano-therapy appliances’ massage appa ratus; psychological aptitude-testing apparatus; 
ozone therapy, oxygen therapy, aerosol therapy,  artificial respiration or other therapeutic 
respiration apparatus  WT/ACC/SPEC/ARM/1/Rev.8 
 Page 95 
 
 
 HS Code Brief description of goods 
9020 Other breathing appliances and gas masks, excluding protective masks having neither 
mechanical parts nor replaceable filters 
9021 Orthopaedic appliances, including crutches, surgical belts and trusses; splints and other 
fracture appliances; artificial parts of the body;  hearing aids and other appliances which are 
worn or carried, or implanted in the body, to compensate for a defect or disability 
9022 Apparatus based on the use of X-rays or alpha, beta or gamma radiations, whether or not for 
medical, surgical, dental or veterinary uses, including radiography or radiotherapy apparatus, X-ray tubes and other X-ray generators, high te nsion generators, control panels and desks, 
screens, examination or treatm ent tables, chairs and the like 
9023 Instruments, apparatus and models, designed for demonstrational purposes (for example, in 
education or exhibitions), unsuitable for other use  
9024 Machines and appliances for testing the hardness, strength, compressibility, elasticity or 
other mechanical properties of materials (for example, metals, wood, textiles, paper, plastics)
9025 Hydrometers and similar floating instruments, thermometers, pyrometers, barometers, 
hygrometers and psychrometers, recording or not, and any combination of these instruments 
9026 Instruments and apparatus for measuring or checking the flow, level, pressure or other 
variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), excluding instruments and apparatus of heading No. 9014, 9015, 9028 or 9032 
9027 Instruments and apparatus for physical or chemical analysis (for example, polarimeters, 
refractometers, spectrometers, gas or smoke an alysis apparatus); instruments and apparatus 
for measuring or checking viscosity, porosity , expansion, surface tension or the like; 
instruments and apparatus for measuring or checking quantities of heat, sound or light 
(including exposure meters); microtomes 
9028 Gas, liquid or electricity supply or production meters, including calibrating meters therefore 
9029 Revolution counters, production counters, taximeters, mileometers, pedometers and the like; 
speed indicators and tachometers, other than those of heading No. 9015; stroboscopes 
9030 Oscilloscopes, spectrum analyzers and instruments and apparatus for measuring or checking 
electrical quantities, excluding meters of heading No. 9028; instruments and apparatus for 
measuring or detecting alpha, beta, gamma, X-ray, cosmic or other ionizing radiations 
9031 Measuring or checking instruments, appliances and machines, not specified or included 
elsewhere in this Chapter; profile projectors 
9032 Automatic regulating or controlling instruments and apparatus 
9033 Parts and accessories (not specified or in cluded elsewhere in this Chapter) for machines, 
appliances, instruments or apparatus of Chapter 90 
910400100 Instrument panel clocks and clocks of a similar type used on civil aircraft 
9108-9112, 9114 Watch parts 
92 Musical instruments 
93 Arms and ammunition 
940110100 Seats of a kind used for aircraft, without leather upholstery, for civil aircraft 
9402 Medical, surgical, dental or veterinary furniture 
940320100 Other metal furniture for civil aircraft 
940510100 Chandeliers and other electric lighting fittings of base metal or plastic, for civil aircraft 
940560100 Illuminated signs, illuminated nameplates and the like of base metal or plastic, for civil 
aircraft 
940592100 Parts of goods specified in heading No. 940510 or No. 940560, for civil aircraft  
950599100 Parts of goods specified in heading No. 940510 or No. 940560, of base metal, for civil 
aircraft 
 
 
 WT/ACC/SPEC/ARM/1/Rev.8 
Page 96  
 
 ANNEX III 
(paragraph 75 refers) 
- Security Sector (production of explosive mate rials, production of weapons, trade in weapons, 
collection and exhibition of weapons, acquis ition of weapons, production of or trade in 
narcotic drugs, anaesthetic and radioactive mate rials, money printing or coining, preparation 
or production of state medals, stamps and seals, import or export of na rcotic drugs, production 
of explosives or equipment for explosions, tr ade in explosive materials or equipment for 
explosion, explosive works, production of import of or trade in fireworks materials);  
- Trade Sector (organization of trading in th e exchanges (non-stock));  Health Sector 
(production of medicines, trade in medicines,  trade in herbs, medical aid and services by 
organizations or individual entrepreneurs, ge netic engineering, implementation of medium 
professional and high medical educational programs);   
- Currency Regulation Sector (foreign currency trading, organization of foreign currency 
auctions); Securities Turnover Sector (printin g of securities forms, professional activities in 
the securities market);   
- Banking and Financial Organizations Sector (b anking activities, organi zation of pawnshops, 
activities of investment compan ies, investment funds, insu rance activity, rendering of 
collection services, insurance brokerage and mediation, rendering of audit services);  
Agricultural Sector (veterinary, bloodstock breeding);   
- Power Engineering Sector (production, import and export, transport, distribution of and trade 
in natural gas; production, import, transmission,  export, distribution of and trade in electrical 
energy; production, import and export, transpor t, distribution of and trade in of thermal 
energy; rendering services on transmission and centralized regulation of electrical energy; construction of new capacities in the fields of electrical and thermal powers);   
- Education Sector (implementation of basic ge neral educational program s, implementation of 
secondary (full) general educational programs, im plementation of special general educational 
programs, implementation of higher professiona l educational programs, excluding medical 
programs);  
- Telecommunications Sector (rendering of te lephone services, rende ring of telegraphic 
communication services, rendering of data transmission services, rendering services on broadcasting of radio-television programs, producti on of trade in or import of radio-electronic 
devices within the frequency range above 9KHz  and 400, production of radio-television 
programs, broadcasting of radio-television pr ograms, production and broadcasting of radio-
television programs);   
- Customs Sector (maintenance of goods under customs control in the customs warehouse, 
trade in goods under customs control in duty -free shops, maintenance of goods in free 
customs warehouse, customs mediation, activities of a customs carrier);   
- Nuclear Power Sector (works on selection, cons truction, putting into operation, operation, 
usage, maintenance and removing away from operation of nuclear and radioactive waste 
stations, sources and storage of ionizing radiation; works with radioactive wastes of nuclear and radioactive materials, including transporta tion, usage, storage, reprocessing and burial of 
such materials; import and export of nuclear, ra dioactive and special materials, radioactive 
wastes, special equipment, technologies; design and preparation of materials, equipment and 
systems for projects using atomic energy; expertise of projects using atomic energy, their designs and other documents);   
- 
Environment Protection Sector (reprocessing, neut ralization, storage, transport and placement 
of dangerous wastes);   
- Quality, Standardization, Certification, M easurement Sector (production and repair of 
measurement means);  
- Lotteries and Price Games Sector (organization of  lotteries, organization of games of chance, 
organization of gambling halls);    WT/ACC/SPEC/ARM/1/Rev.8 
 Page 97 
 
 
 - Transport Sector (activities of scheduled air tran sport, activities of not-scheduled air transport, 
organization of railroad transport);   
- Urban Construction Sector (elabor ation of urban construction doc uments in the area of capital 
construction in the following fields of urban cons truction, civic, industrial, transport, hydro 
technical, power engineering, communication, special; capital construction in the following 
fields of urban construction, civic, industrial , transport, hydro technical, power engineering, 
communication, special);    
- Activities in other fields (statutory expertise examinations of types of activities subject to 
licensing, non-official publication, duplication or official re-publication of laws and legal-
normative acts, implementation of activities of an administrator on insolvency issues of 
insolvent enterprises, site and cadastre mapping,  evaluation of real estate, realtor activity, 
foodstuff production). WT/ACC/SPEC/ARM/1/Rev.8 
Page 98  
 
  APPENDIX 
 
[ DRAFT DECISION 
ACCESSION OF THE REPUBLIC OF ARMENIA 
Decision of […]  
 
 The General Council   Having regard to  paragraph 2 of Article XII and paragr aph 1 of Article IX of the Marrakesh 
Agreement Establishing the World Trade Organizat ion (the "WTO Agreement"), and the Decision-
Making Procedures under Articles IX and XII of th e WTO Agreement agreed by the General Council 
(WT/L/93); 
 Conducting  the functions of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement; 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of the Republic of Armenia to the WTO Ag reement and having prepared a Protocol on the 
Accession of the Republic of Armenia; 
 Decides  as follows: 
1. The Republic of Armenia may accede to the WTO Agreement on the terms and conditions set 
out in the Protocol annexed to this Decision. 
 
_______________ 
 
     WT/ACC/SPEC/ARM/1/Rev.8 
 Page 99 
 
 
 DRAFT PROTOCOL  
ON THE ACCESSION OF THE REPUBLIC OF ARMENIA 
Preamble  
 The World Trade Organization (hereinafter referred to as the "WTO "), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organizati on (hereinafter referred to as the "WTO Agreement "), and 
Armenia,  
 Taking note  of the Report of the Working Party on the Accession of the Republic of Armenia to 
the WTO Agreement reproduced in document WT/A CC/ARM…, dated […] (hereinafter referred to as 
the "Working Party Report"), 
 Having regard  to the results of the negotiations on the accession of the Republ ic of Armenia to 
the WTO Agreement,  
 Agree  as follows: 
PART I -  GENERAL 
1. Upon entry into force of this  Protocol pursuant to paragraph 8, the Repub lic of Armenia accedes 
to the WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a Member of 
the WTO.  
2. The WTO Agreement to which the Republic of  Armenia accedes shall be the WTO Agreement, 
including the Explanatory Notes to that Agreement, as  rectified, amended or ot herwise modified by such 
legal instruments as may have entered into force before the date of entry into force of this Protocol.  This 
Protocol, which shall include the commitments refe rred to in paragraph 218 of the Working Party 
Report, shall be an integral part of the WTO Agreement. 
3. Except as otherwis e provided for in paragraph 218 of  the Working Party Report, those 
obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by the Republic of Arme nia as if it had accepted that Agreement on the date of its entry 
into force. 
4. The Republic of Armenia may main tain a measure inconsistent with  paragraph 1 of Article II of 
the GATS provided that such a measure was recorded in  the list of Article II Exemptions annexed to this 
Protocol and meets the conditions of the A nnex to the GATS on Article II Exemptions. 
PART II - SCHEDULES 
5. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitments annexed to the General Agreement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Co mmitments annexed to the 
General Agreement on Trade in Services (hereinafter re ferred to as "GATS") relating to the Republic of 
Armenia.  The staging of the con cessions and commitments listed in the Schedules shall be implemented 
as specified in the relevant pa rts of the respective Schedules. 
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Con cessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. WT/ACC/SPEC/ARM/1/Rev.8 
Page 100  
 
  
PART III - FINAL PROVISIONS 
7. This Protocol shall be open for acceptance, by signature or otherwise, by the Republic of 
Armenia until […]. 
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by th e Republic of Armenia.  
9. This Protocol shall be deposited with the Dire ctor-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of  this Protocol and a notification of acceptance by 
the Republic of Armenia thereto pur suant to paragraph 7 to each Member of the WTO and to the 
Republic of Armenia.   
 This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter 
of the United Nations.   
 Done at […] this […] day of […] in a single c opy in the English, French and Spanish languages, 
each text being authentic, except that a Schedule  annexed hereto may specify that it is authentic 
in only one of these languages. 
_______________ 
 
    WT/ACC/SPEC/ARM/1/Rev.8 
 Page 101 
 
 
 ANNEX 
 
 
SCHEDULE […] – REPUBLIC OF ARMENIA 
 
Authentic only in the … language. 
(Circulated in document WT/ACC/ARM/…/Add.1) 
 
 
_______________ 
 
  
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
 
Authentic only in the … language. 
(Circulated in document WT/ACC/ARM/…/Add.2) ] 
 
__________