RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/ARM/23
26 November 2002
(02-6528)
Working Party on the
Accession of Armenia
REPORT OF THE WORKING PARTY
ON THE ACCESSION OF THE REPUBLIC OF ARMENIA
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 Agreementon 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 Ar menia applied for accession to the Agreement
Establishing the World Trade Organization (WTO) pursuant to Article XII of the WTO Agreement.
Following Armenia's application and having regard to the Decision adopted by the General Councilon 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 Party.  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 21 November 2002 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 Armeni a (WT/ACC/ARM/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 Repub lic 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 International 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 Operating in the Republic of Armenia”
- 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 Republic of Armenia Law on Excise Tax of
30 November 1994;
- Law on Pledge Collateral;
- Law on Bankruptcy of Enterprises and Individual 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;WT/ACC/ARM/23
Page 2
- Law on State Agrarian Inspections;
- Statute of the Peasant and Collective 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 Corr oboration of the Temporary Regulations for
Auditing Activities in the Republic of Armenia”;
- Government Decision of 17 January 1995, "On 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 August  1995, "On Confirmation of the Temporary
Regulations for Trademarks and Service Marks";
- Government Resolution No. 606 of 29 Decemb er 1994, "On Rates of the Excise Tax";
- Government Resolution No. 88 of 23 February 1994, "On the Order of Submitting Statistical
Reports Regarding the Importation and Exportation 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 Territory of the Republic of Armenia";
- Decree of the Government of the Republic  of Armenia No. 124 of 29 December 1995 On
Non-Tariff Regulation of the Commodities (Operations, Services) Import and Export in the
Republic of Armenia;
- Statement of the Central Bank of the Republic of Armenia on Joining to Article VIII of the IMF
Agreement.;
- The Law of the Republic of  Armenia of 30 June 1996, "On 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 Republic of Armenia No. 124 of 29 December 1995, "On
Non-Tariff Regulation of the Commodities (Operations, Services) Import and Export in the
Republic of Armenia";
- Amendments to the Law, "On Privatization a nd Denationalization of State-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 Republic 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 Health of the Republic of Armenia of 20 June 1996, "On Issuing
Inferences on Import and Export of Pharmaceutical s into and from the Republic of Armenia";
- Statute of the Ministry of Environment Protection and Mineral Resources of the Republic of
Armenia of 20 June 1996, "On Issuing Inferen ces on Export of Wild Animals and Plants
Included in the Red Book (Endangered Species  Listing) of the Republic of Armenia";
- Statute of the Ministry of Agriculture and Food of the Republic of Armenia of 20 June 1996 On
Issuing Inferences on Import of Plant Protec tion Agents into the Republic of Armenia.
- Decree of the Ministry of Health of the Republ ic of Armenia, "On Regulation of Pharmaceutical
Activity and Ensuring the Quality of Drugs and Medical Facilities";
- Programme of the Government of the Republic  of Armenia, "On Privatization 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 Decree of the Government of the Republic of
Armenia No. 615 of 6 December 1993, "On Determining the Customs Duties";
- Law of the Republic of Armenia "O n Customs Duties" of 30 December 1998;
- Law of the Republic of Armenia "On Cu stoms User Fees of 30 December 1998;
- Decree of the Government of Armenia "To Define the Rules for Determining the Country of
Origin of Goods";
- Civil Code of the Republic of Armenia of 5 May 1998;WT/ACC/ARM/23
Page 3
- 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 Copyri ght 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 Lega l 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 Certification 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 Repub lic 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 Certified 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 "O n 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 Agricultural Cultivated Plants, Forestry and
Ornamental Plants;
- List of Quarantine Pests, Diseases of Pl ants 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 Ag rarian 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 "On Veterinary" of 26 October 1999;
- 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 Certification"  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 Assembly 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);WT/ACC/ARM/23
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- 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;
- Law on Making Amendments and Additions to the Customs Code;
- Law on Making Changes and Amendments in the "Criminal Code" of the Republic of Armenia;
- Law on Making Changes and Amendments in  the Law of the Republic of Armenia on
"Copyright and Neighbouring Rights";
- Law on Making Amendments in the Law of th e Republic of Armenia on "Value Added Tax";
and
- Law on Making Amendments in the Law of the Republic of Armenia on "Excise Tax".
Introductory statements
4. In an introductory statement, the representative of Armenia said that since declaring
independence from the former Soviet Union in 1 991, Armenia had vigorously pursued free market
reforms within a democratic framework, notwithstanding acute political and economic difficulties.
Economic decline had been reflected in sharp reductions in output, falling incomes, reduced trade
flows, severe shortages of energy, and scarcity of food and other consumer goods.  Despite thisadversity, the Government had persevered with the economic reform programme, placing particular
emphasis on liberalization, stabilization, and economic restructuring.  Most agricultural land was
privatized shortly after independence and privatization in other sectors was moving ahead.
Demonopolization and deregulation had removed barriers to private sector participation in all but a
few areas of economic activity.  Price controls were only applied to a limited number of essentialgoods 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
brought monthly inflation down to a single digit level, from the triple-digit levels prevailing at the endof 1993.  By the end of 1997 the annual inflation was 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 integration 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 emphasized specialization on the basis of internationalcomparative 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 the Working Party acknowledged that Armenia hadundergone a rapid process concerning reform and trade liberalization which, notwithstanding internal
and external difficulties, appeared to be succeeding 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 the Working Party concerning Armenia’s foreign
exchange reserves and the convertibility of the Dram, the representative of Armenia stated that gross
official reserves made up US$ 330 million by the end of 2000 and covered about 4 months of imports.WT/ACC/ARM/23
Page 5
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 Agreement, Sections 2, 3 and 4, and has comm itted to
refrain from imposing restrictions on the making of payments and transfers for current international
transactions, and from engaging in discriminatory currency arrangements or multiple currencypractices without IMF approval. According to  Resolution No. 141 "On Foreign Exchange Regulation
and Administration of Control", there were no restrictions 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 selling operations in foreign exchange market (the
participants of foreign exchange market are those dealing with over-the-counter market, stock
exchanges, foreign exchange bureaus, etc.). Foreig n exchange dealers (including banks) were free to
establish their own exchange rates for transactio ns. Non-resident banks could be authorized to
participate in the domestic foreign exchange market on conditions equal to those set for resident
banks. Legal entities and natural persons, resident s and non-residents of Armenia could open and hold
their current accounts in foreign banks without any restrictions.  The authorities indicated that
residents of Armenia could undertake  movement of  capital without any restrictions unless otherwise
specified by CBA and that non-residents could undertake the  movement of capital according to the
"Law on Foreign Investments" of the Republic of Arme nia.  All bilateral clearing arrangements based
on barter had been eliminated.
-I n c o m e  T a x
8. The representative of Armenia stated that according to the Law on Income Tax, which entered
into force on 1 January 1998, personal income tax was determined on the basis of the amount of the
taxpayer’s income earned during the reporting period. In determining the taxable income the
following deductions could be made from a gross 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 categories of receipts were exempt income for tax
considerations: social security allowances under Armenian 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 other 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.
For agricultural land the land tax rate was set at 15 per cent of calculated net income determined byWT/ACC/ARM/23
Page 6
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 value of the land (0.5 per cent if outside residential
area). In order to promote the development of plant-raising, newly established and immature orchards
and vineyards were exempted from payment of land 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 the National Assembly of Armenia, the property character of the
tax was accentuated, and tax calculation methods were  simplified. In particular, for both agricultural
and non-agricultural land plots the amount of tax would 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 activities 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 insurance; 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 otherincome received from Armenian sources, Interest10 per cent
Taxpayers engaged in the production of agricultural products were exempted from the profit tax
payments.   Since 1 January 1998, Armenian resident statutory funds with foreign investments ofgreater than 500 million Drams had been permitted to reduce their profit tax as follows:
Proportion of profit tax reductions from the tax liability of the
resident enterprise with foreign investment, allowed for the
respective yearsYear when the established investment
benchmark in the statutory fund of a
resident enterprises would be fulfilled100 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 2007WT/ACC/ARM/23
Page 7
Proportion of profit tax reductions from the tax liability of the
resident enterprise with foreign investment, allowed for the
respective yearsYear when the established investment
benchmark in the statutory fund of a
resident enterprises would be fulfilled100 per cent 50 per cent
2006 2007 and 2008
2007 2008 and 2009
If the taxpayer’s ceased operations during the  period of tax reduction, the amount of the profit tax
would be calculated at the full rate for the entire period of economic activity.
- Simplified tax
11. The representative of Armenia said that ac cording 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 entrepreneurs, whether Armenian or foreign in origin
were subjected equally to the tax.  For legal persons simplified tax substituted for VAT and Profit
Tax.  For individual entrepreneurs simplified tax substituted for VAT and Income Tax.  Tax privilegesfor VAT and Profit or Income Tax  had been terminated 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 public 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 simplifi ed tax notwithstanding the total annual amount of
turnover.  He further noted that the legal persons and individual entrepreneurs to whom simplified taxapplied 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 (including 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";
- Taxpayers holding any remaining goods imported under a "for free circulation"
customs regime, (non VAT taxable at the moment 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;WT/ACC/ARM/23
Page 8
b) For the amount exceeding 30 million Drams – 7 per cent.
For the purpose of the simplified tax expression trade 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 legal entities.    The calculation of the tax levied on
buildings was based on their value (determined pursuant 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 residential 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 kilowatts:  200 Drams per horsepower/ 272
Drams per kilowatt;
- 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 trucks:  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 concerning 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 sma ll 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 companies (including 170 decrees on dissolution of
enterprises).  The national Assembly of the Rep ublic of Armenia had adopted Laws on Armenia's
Privatization Program.
15. The representative of Armenia noted that five privatization programs adopted by the National
Assembly had been undertaken since the beginning of the privatization 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 privatization programs.  Those privatizationprograms 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,WT/ACC/ARM/23
Page 9
was adopted by the National Assembly on 27 July 2001.  It incorporated all enterprises intended to
have been privatised under earlier programs. He further noted that foreign legal and natural persons
were free to participate in the privatization of any state assets.
16. In response to further requests for information the representative of Armenia noted that up to
1 January 2002  1,643 medium and large enterprises had been privatised.  Of those 1,081 had beenprivatised through the open subscription of shares, 62 through share auctions, 134  employee buy out,
102 through tenders, 20 through auctions, and 377  through direct sales, of which 200 to lessees.  The
most common form of privatisation was the open subscription 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
heavy indebtedness.  The representative of Arme nia 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 expected to continue.  The representative of Armenia
noted further that the State-owned sector accounte d (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 information 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 Airlines" Company was anticipated.  In the energysector eleven hydro-electric power stations had been already privatized, two of had been purchased by
foreign persons.  The Armenian network of gas distribution was privatized, resulting in the
establishment of "ArmRusGasArd" CSC. In 2001 the strategic enterprises of "Almast" CJSC,
"Sapfire" JSC,  "Tranzistor" and "Hrazdan Cement" were 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 attracting 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 following 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 fundamental research investigations;
- geologic, cartographic, geodesic, hydrometereological enterprises, enterprises
exercising control over conditions and protection 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 materials (and appliances for them) as well as
enterprises involved in research and constructing activities in this area;
- reformatories and corrective labour establishments;WT/ACC/ARM/23
Page 10
- 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, transport 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/ARM/23
Page 11Table 1 (a) Privatised enterprises in the period 1994-2002
Privatized Not privatized
Type of PrivatizationTotal In 2001Industry
and TradeAgricultureUrban
Constructio
nCulture EnergyTransport &
Communi-
cationState Property
ManagementHealthInformation &
TypographyOthersIn
preparation
Process Total In 2001
Direct Sale 377 48 144 67 40 17 8 24 25 15 5 32 17 13
   o f  w h i c h  t o  l e s s e e s 2 0 01 08 12 93 01 1 7 9 1 8 12 3 3
Tender 102 21 20 24 18 9 9 15 1 6 14 136 48
A u c t i o n 2 0 1 91 0 1 41 81 0
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 11
New Stock Issue
T o t a l 1 6 4 39 0 5 9 4 4 7 2 2 5 04 73 28 25 41 73 75 87 8 3 6 77 3
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
Bankruptcy62111 - - - - - -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 7WT/ACC/ARM/23
Page 12Table 1 c  Total privatizations
Paid
(thousand Drams)
Totalof 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 since the year 2001, the following changes applied to the above ta ble:
1. The method of privatization through “International tender” was discontinued, since all types of prospective purchasers can pa rticipate 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 privatizati on 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 pr ivatization through direct sales, so the information on privati zation via sale of assets to the lessees was
included in the data on direct sales.
4. Though the Law envisages privatization thr ough share auction, it was currently out of practice by reason of its ineffectiveness.  However, taking into account the fact
that some enterprises were privatized 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/ARM/23
Page 13
20. The representative of Armenia added that within Armenia there remained some  concerns
about the privatization programme, particularly in relation to  overall concept of privatization, and the
desirability of voucher versus tender. As had been 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 objectives 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 lead to a recent focus on the tender method of
company privatization.  Whenever possible, enterprises 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 the form of privatization, as well as with respect to
the terms of payment.  The Government had also begun the process of winding-up enterprisespreviously offered for privatization in respect of  which privatization had failed.  He further noted that
the transparency of information relating to privatized enterprises was ensured, and detailed
information on privatized enterprises was readily available in Armenia's mass media and on a special
internet page (www.privatization.am).
22. In response to a  question concerning privatisation of agricultural land, the representative of
Armenia stated that  almost 70 per cent of agricultur al land had been privatised.  Title to  all land had
been made freely transferable.  The small share of land still in State hands was reserve land and land
used for certain kinds of agricultural support activities described in paragraphs 157-159 below.  There
was no  timetable for the privatization of the 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 Members on developments in its programme of
privatization along the lines of the information provided 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.
- Investment regime
24. The representative of Armenia stated that the 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 requiring that expropriation  only take place following
a judicial decision.  In such a case,  full compensation 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 determined by a Court of Law).  The Law alsoguaranteed investors the right to freely repatriate  profits and assets.  In the event that foreign
investment legislation was changed after an inve stment 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 recognition  that the existing legislation did fit thecurrent economic situation  and there was no  need for new legislation to coordinate foreign investors
activities.
25. The representative of Armenia recalled the description of the Law on Profit Tax described in
paragraph 10 above.  He further added that Decree No. 124 expressly stipulated that the unifiedWT/ACC/ARM/23
Page 14
system of export and import of goods and services 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 noted that foreign investors were free to choose
their own insurers.  No investment performance requirements 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 foreign 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 Code  permitted foreign citizens, juridical persons,
other economic entities and  international organizations to lease land in the Republic of Armenia.  TheCivil Code of Armenia permitted state bodies or local self-government to decide to lease publicly
owned land  or for private or collective owners to lease their land on the basis of a reciprocal contract
between the parties.
- 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 price 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 transport, 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 services (Government Decree No. 658 of 28 October 1998and Government Decree No. 717 of 26 November 1999).  Those prices were still subject to regulation
because State-owned enterprises were the exclusive 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 maintain their real value. In Armenia there was no
differentiation in pricing based upon the category of user.  The prices of electricity and gas todomestic 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 electricity 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 month51,000 AMD per 1,000 cubic metres
For consumers which use more than 10,000 cubic metres
per month46,500 AMD per 1,000 cubic metres
The representative of Armenia confirmed that there was no price differentiation based on type of firm
or output.WT/ACC/ARM/23
Page 15
28. The representative of Armenia added that subsidies on bread, municipal electric transport and
garbage collection, and cross-subsidies on water and sewerage had been eliminated.  The subsidies on
district heating and hot water (the only remaining consumer subsidies) were under review.  In the case
of district heating, which less than one-third of households actually receive, the issue of provision of
targeted heating subsidies to vulnerable groups would be resolved as part of the overall reform ofsocial 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 theGovernment’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 EN FORCING 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 legislature of the Republic of Armenia was the
National Assembly, which consisted 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 plenary 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 Chairman by majority vote for the whole period of itsplenary powers.  The Chairman conducted sessions, administered 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 other 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.  The President of the Republic was required to adhere
to the  Constitution, and oversaw the ordinary activities of the legislative, and all exercise of executiveand judicial powers. The President of the Republic was elected by popular vote every five years.  The
President issued decrees and orders, which were subject to implementation throughout the Republic of
Armenia.  These decrees and orders should not be in conflict with the Constitution and laws.
31. The representative of Armenia added that the Government carried out the executive power in
the Republic of Armenia and comprised the Prime Minister and Ministers. The President of theRepublic appointed and dismissed the Prime Minist er, 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 Government 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, envisaged by the Order of Governmental Activities.
32. The representative of Armenia said that in conformity with the Constitution of the Republic
of Armenia, judicial powers were executed exclusively by the Courts, in accordance with the
Constitution and legislation.  In administering justice, Judges were independent and answerable only
to law. The guarantor of the independence of judicial bodies was the President of the Republic, whowas the Head of the Council of Justice.  The Minister of Justice and the Procurator General were theWT/ACC/ARM/23
Page 16
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 Appeals.  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 Constitutional Court adopted resolutions and verdicts.  These
resolutions were final, could not be challenged and entered into force upon promulgation.  Accordingto the Constitution of the Republic of Armenia, the 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 Agr eement shall prevail.  International treaties and
agreements that contradicted the Constitution may be ratified after making a corresponding
amendment to the Constitution.
33. The representative of Armenia said that according to the 1999 Civil Code of the Republic of
Armenia  (as amended on 11 September 2001),  all economic disputes (whether the parties were
natural or legal persons) should first be referred to the jurisdiction of Economic Court.  Decisions
taken by the Economic Court could be  appealed according to the procedures stipulated by Armenian
legislation.  Armenian legislation did  not contemplate any differential treatment between CIS andnon-CIS legal entities. As a result of on-going judicial 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 new 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 through the Courts of general competence  in thearea 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
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, according to the Law on Administrative Infringements,administrative decisions could be appealed to the higher 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 administrative rulings on matters subject to WTO provisions
to an independent tribunal in conformity with WT O 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 De velopment had been created.  That new Ministry
had been given  primary responsibility in most aspects 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, exchange rate policy and the banking system.  TheIntellectual Property Agency within the structure 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 affecting trade in goods and services, including subsidiesand taxation, the Central Government retained full authority.  Sub-central and Local administrative
bodies have no jurisdiction or authority to establish regulations or taxes 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 andArmenia’s Protocol of Accession were subject to  implementation uniformly throughout the RepublicWT/ACC/ARM/23
Page 17
of Armenia, including in regions engaging in border trade or frontier traffic "special economic zones"
and other areas where special regimes for tariffs, taxes 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 Republic of Armenia that were in conflict with the
WTO Agreement when those measures were brought to its attention, without requiring affectingparties to petition through the courts.  The Working Party took note of these commitments.
37. The representative of Armenia informed the Wo rking Party that after the signing of the WTO
Accession Protocol by the Government of Armenia, 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 agreements ratified by the National Assembly, including
WTO Agreements, had precedence over domestic laws or other acts in Armenia. All the laws andlegislative instruments necessary for the application of the provisions would be adopted as provided in
the Protocol of Accession and would  be in place prior to that time. The Working 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 Working 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 abolished in 1989, and was replaced by a registration
requirement Enterprises or private entrepreneurs engaging in trading (including 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 and operating in the Republic of Armenia, regardless
of their form of ownership, were granted the right to conduct foreign economic activity without any
additional registration requirements. The legislation governing company incorporation andregistration consisted of:  The Law on the State Register of Legal Entities; The Armenian Civil Code,
1999; The Law on Foreign Investment, 1994; The La w on State Fees, 1997. The State registration of
enterprises and private entrepreneurs in the Republic of Armenia, as well as the procedure and
conditions for the use of information provided through the registration process was defined in the Law
on the State Registration of Legal Entities of 26 April 2001.  Additional provisions could be found inthe 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 persons were permitted to import limited quantities of items into
Armenia for personal use without registration, although to engage in resale of those items registration
as a sole entrepreneur was required. No registration was required in Armenia for any enterpriseoperating 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 procedures had taken place.WT/ACC/ARM/23
Page 18
42. He further noted that certain types of activities required a licence.  The Law on Licensing
(adopted on 30 May 2001) listed the types of activities subject to licensing.  Licenses were of the
following type; licenses issued by "simple" procedures;  licenses issued by "compound" procedures.
A simple licence required submission of an application 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 anindividual entrepreneur) and any other documents pr ovided 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 application.  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 individual entrepreneurs was carried out by the
State Registry, which operated as part of the Ministry of Justice.  The State Registry consisted of aCentral Body and regional divisions.  In accordance with Article 21 of the Law on the State
Registration of Legal Entities the following documents 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.  Legalentities with a foreign founder were also required to submit an extract from the commercial
registration book of the given country (or equivalent 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 days after submitting all necessary documents, the
regional subdivision of the State Registry was required to complete the state registration of a legal
entity. The state registration of individual entrepreneurs was required within a period of two days.  A
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 maintained by the Central Body of the State Registry,which updated it at least once every 10 days. The information of the Unified State Register was open
for general public access.
45. He further noted that to obtain state registration of an amended business charter, the following
documents must be submitted to the regional subdivision of the State registry: an application; the
decision of the authorized body relating to the amendments and supplements in the charter, as well as
the approval of the restated charter with amendments and supplements; the amendments or
supplements of the charter; receipt for state fee payment.  Any changes and amendments in statutorydocuments, 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 the founders; references from tax and social securitybodies; a corresponding document on the return of the seal; the state registration certificate.
47. The representative of Armenia confirmed 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 services within the Republic of Armenia existed,
except as provided for in WTO Agreements; that in dividuals 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 Armenia 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 conformity with its WTO obligations, including ArticlesWT/ACC/ARM/23
Page 19
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 obligations.  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, provided a legislative framework for setting tariffs and dealing with
customs matters.  Decree No. 615 issued by the Government in December 1993 introduced new
customs duties, which were further modified by Government Decree No. 224 of May 1994 and by
Government Decree No. 39 of January 1995. According 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, adopted by the National Assembly in April 1997,
introduced the new list of customs duties. The rectification of the Law on Customs Tariffs wasaccomplished by the Law on Amendments to the Law on Customs Tariffs in September 1997.   In
December 1998, the Law on Customs Duties was adopted by the National Assembly.  The Law on
Customs Duties covered the following sections:  customs 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 Assembly, which incorporated the provisions of the
Law on Customs Duties, including the customs duty rates.  The Customs Code entered into force on
1 January 2001.
49. The representative of Armenia said that the customs tariffs were expressed in ad valorem
terms and were levied on c.i.f. values, except for 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 and customs duties, according to the following rates:
Table Two
CN Code Brief Description of ProductsAmount of fixed
charges (US$ for
1,000 items)
for imported
productsAmount 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 the fixed charges on imported products and the fixed
charges on domestically produced products represented a customs duty within the context of the
Republic of Armenia’s commitment on ad valorem tariff rate bindings, as follows:WT/ACC/ARM/23
Page 20
Table Three
CN CodeBrief Description of
ProductsAverage 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 Code of the Republic of Armenia of 26 December
2000, established customs duties for alcohol and alcoholic beverages.  Some members of the Working
Party expressed concerns that the specific rates applied might exceed the bound ad valorem  rate.  In
response, the representative of Armenia stated that following accession, the Ministry of Trade would
periodically review specific rates against average import 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 MeasureCustoms
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 substances1 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
(byrecalculationof 100% spirit)70 498.2 14.1
2208 Spirit drinks, including
220820 Made from dis tillation 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-v odka 600 5454.5 11
220890 Other1 litre
(byrecalculation
of 100% spirit)
240 1920.0 12.5
51. The representative of Armenia stated that 279 items were specified in Armenia’s tariff
schedule.  The majority of product categories identified at the two-digit level of the Harmonized
System had the same rate of duty. Some members of the Working Party asked whether it would beWT/ACC/ARM/23
Page 21
possible to disaggregate the tariff to the four or greater digit level.  In response, the representative of
Armenia stated if it proved necessary the Govern ment of Armenia would continue disaggregating its
tariff schedule from its present level.
52. The representative of Armenia noted that more than sixty per cent of the items in the tariff
schedule were subject to a duty rate of zero (161 items) with the remaining 97 items subject to a 10per 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 rates of customs duty would not be applied in
excess of the levels bound in Armenia’s WTO Schedule of Concessions on Goods, which is annexed
to the Protocol of Accession of Armenia.  In  addition, upon request, Armenia would consult with
WTO Members to address any concerns related to the application of specific duties to imports whereArmenia had adopted bound ad valorem  tariff rates.  The Working Party took note of this
commitment.
- Other duties and charges 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 asdescribed 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 allduties and charges, other than ordinary customs duties, at zero in Armenia's Market Accession
Schedule under Article II:1(b) of the GATT 1994, annexed 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.
- Tariff exemptions
56. The representative of Armenia stated that all tariff 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 exemptions were granted
in respect of the following:
- capital assets imported by foreign investors and designated for a statutory fund of joint
ventures and enterprises with foreign investments;
- goods in transit through the Re public of Armenia;
- trucks and vehicles, regularly operating as freight and passenger carriers through the
Republic of Armenia, as well as fuel, f ood, tools and other minor items necessary for
temporary use to perform these operations;
- foreign exchange, bonds and other securities;
- goods imported into the Republic of Armenia within the framework of humanitarian aid
or charity programs;
- specific goods temporarily imported into Re public of Armenia and further e xported
without being processed, such as fair and exposition exhibits, commodity patterns andWT/ACC/ARM/23
Page 22
package, professional equipment of tempor ary visitors, advertising materials, live
animals, etc.;
- goods imported into duty-free shops for 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 Cent ral Bank of the Republic of Armenia;
- any other instances foreseen in international agreements.
According to Article 104 of the Republic of Armenia’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-importation 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 and travellers, as well
as tools, fuel, foodstuffs, which may  be needed during the trip, at stopovers or forfixing the malfunctions of the mentioned means of transport;
- currency, foreign currency and securities;
- goods imported into the Republic of Armenia 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 organizations and included in the list of goods established by the
Government of the Republic of Armenia;
- 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, ArticleVIII of the GATT 1994.  They also noted that a transition period to bring the fee into conformity with
Article VIII was not appropriate.  Those members considered that Armenia should conform with the
requirements of Article VIII from the date of accession, and from that time the proceeds from the
collection of fees should only be used for the operation of customs clearance facilities.  They further
stated that  total  revenues from the fee  should no t 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, customsfee 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 perWT/ACC/ARM/23
Page 23
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 Armenia’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 follow ing 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 means 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 incomplete) ton of weight of cargo declared
under the same declaration and having above one ton of weight.
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 ratesprescribed 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 control 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 Code , 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.WT/ACC/ARM/23
Page 24
The fee was also applied to exports and to import 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 fee for customs processing established under the Law on
Customs Fees of 30 December 1998 and as of 1 January 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 would not exceed the approximate cost of customs
processing of individual import and export transactions.  Revenues from the collection of the feeswould be used solely for customs processing of imports and exports, and total annual revenue from
collection of the fees would not exceed the approximate 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.   Information on the application and level of the fees,
revenues collected and their use, would be provided to WTO Members upon request. The WorkingParty took note of these commitments.
- Application of internal taxes to imports
61. The representative of Armenia informed the Working 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 April 1997 the National Assembly of the Republicof Armenia adopted the new Law on Taxes. Under this 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 taxes were imposed on imports and domestic 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 those taxes were provided in paragraphs 62-71 below of this Report.
- Value Added Tax
62. The representative of Armenia informed the Work ing Party that after the Law on Value Added
Tax entered into force on 1 July 1997, the destination principle of VAT application was applied to all
countries.  Armenian exports to any destination were charged at zero rate, and 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 exportation.  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 organizations and private en terprises 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 June 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 imported 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
moment of importation irrespective of the country of   origin.  The items exempted from VAT included:WT/ACC/ARM/23
Page 25
education in secondary schools, exercise books and music books for schoolchildren scientific research
work; sales of veterinary drugs; sales of domesti cally produced agricultural products by the producer;
activities related to the provision of pensions; some financial operations and services, etc.  In addition,
zero-rate tax was applied to:  the taxable turnover of goods exported out of the Republic of Armenia;
goods imported for official usage by diplomatic a nd consular representations or by other equivalent
international, intergovernmental (interstate) orga nizations, as well as goods and services acquired by
those organizations in the Republic  of Armenia; transit of foreign pay-loads through the Republic of
Armenia; construction and relevant (designing, resear ch, etc.).  He recalled that the full list of VAT
exemptions had been provided to the Working Pa rty.  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 veterinary drugs from the value added tax appeared to
constitute discriminatory treatment of imports in relation to similar domestic products and wastherefore inconsistent with Article III of the GATT 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., agricultural 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 s upport system and, a transitional period of application
after accession would be necessary prior to its elimination 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 Parlia ment 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 Working 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, the existing exemption from the value added tax of
domestic agricultural production sold by producers and 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, Armenia 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.
-E x c i s e  T a x
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,  whichentered into force on 1 August 2000, imposed excise tax on both domestic and imported goods.
Excise tax on imported goods was collected by the customs authorities, and excise tax on local
production was collected by the tax authorities. According 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 flav oured with plants or aromatic substances;
- Other brewed drinks, including:
- made from distillation of grape wine and wine 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).WT/ACC/ARM/23
Page 26
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 goods, based on the sales prices (without excise and value
added taxes). The taxpayers producing/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.  Forgoods imported into Armenia the amount of excise tax collected was based on the customs value of
the goods  (without value added taxes and customs tariffs).  In the Republic of Armenia excise taxes
charged on imported goods were levied by the customs bodies within ten days after importation.
The rates of excise taxes were as follows:
Table Five
HS number Product description Taxable base Rate(AMD)
2203 Beer 1 litre 70
2204
220410Grape and other wines, wine ingredients,
 including
Sparkling wines,Champagne1 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 of100% spirit)600
2208
220860,
220870Spirit drinks, including
Made from distillation of grape wine and wine
ingredients (cognac, armagnac , etc.)Vodka, liquor,
and fruit-vodka1 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 and271121)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 fixed fees on tobacco products. According to the
Law the fixed fees on imported tobacco products substituted for the value added tax, the excise tax
and customs duties, and the fees on tobacco products produced in Armenia substituted for the valueadded tax and the excise tax. The law stipulated the following rates for imported and domesticallyproduced tobacco products:WT/ACC/ARM/23
Page 27
Table Six
Amount of fixed fees
($US for 1,000 items)CN code Brief Description of ProductsOn imported
productsOn 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).  Furtherm ore, 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 taxation 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 taxa tion of vodka into conformity with the its excise
taxation of other distilled spirit beverages.   Some  members of the Working Party also noted that the
different rates of excise tax for tobacco products constituted a tariff duty applied 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 distilled beverages, vodka, cognac, liquor,
etc. (HS 2208) and to equalise the level of excise duties applied to champagne, sparkling wines, wines,
etc. (HS 2204).  The Working Party 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 switched to the destination
principle of taxation with respect to imports from all sources.  In addition Armenia was attempting topersuade its CIS trading partners of the desirability of charging these taxes at destination and not
origin.  He further confirmed that no credit was given 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 mannerconsistent 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 new Laws on VAT and on Excise tax, these taxes were
applied at an equal rate on domestic and imported goods and Armenia 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 would be published in the
official newspaper or other widely available source and readily available to importers, exporters, anddomestic producers. The Working Party took note of these commitments.WT/ACC/ARM/23
Page 28
- Quantitative import restrictions (including prohibitions, quotas and licensing systems)
and licensing procedures
73. The representative of Armenia stated that Resolution 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 affectedwere all kinds of weapons; military technology and the consumables necessary for its production;
technologies, equipment and locators of nuclear materials (including heating materials); special non-
nuclear materials and services related to it; and ionizing radiation sources.  The importation of those
products  was subject to  specific authorization issued by the Government of the Republic of Armenia.
In response to requests from members of the Working Party, the representative 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 consumer rights, some products were subject to
mandatory conformity assessment according to Resolution No. 239, 12 May 2000. Pharmaceuticalproducts and medicines are excluded from the list of products subject to mandatory conformity
assessment (mandatory certification), but were subject to import and export permission requirements.
The representative of Armenia stated that the list of pharmaceutical products and medicines subject to
import and export permissions, issued by the Ministry of Health, was established by Government
Resolution 581 of 20 September 2000 as follows:
Table Seven
HS number
Pharmaceutical products,
medicines051000; 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 categories of products in the list used for pharmaceutical purposes, are subject to
import and/or export permission.
75. The representative of Armenia stated that according 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 requiredauthorisation from the Ministry of Health of the Republic of Armenia (except for veterinary drugs and
related products).  Resolution 581 "On issuing permission for importing and exporting
pharmaceuticals", stipulated that:
- permissions for importation of pharmaceuticals were issued by the Ministry of Health of the
Republic of Armenia;
- the permissions were for single use only;WT/ACC/ARM/23
Page 29
- permissions could  be obtained by:
- those importers that had a licence for conducting exportation and importation activity in
pharmaceutical products and (or) medicines,  given by the Ministry of Health;
- those importers that have a licence for production of pharmaceutical products and (or)
medicines, given by the Ministry of Health;
- those importers who had no licence, but whose activity was connected to the
pharmaceutical products and medicines research, 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, implementation of medium pr ofessional and high medical educational
programs were subject to State licensing in the Republic of Armenia.  After the Law onLicensing had been adopted and entered into force some Resolutions needed to be
changed to avoid overlaps and disparity.  The 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 im portation and exportation activity had to be
licensed.  Specific requirements for importa tion and exportation activity licensing were
being elaborated by the Government.  Pres ently, a licence for wholesale trade gave to
business entities a right to conduct importation and exportation activities.  Resolution 36
stipulated that:
- pharmaceutical and medical 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 Co mmittee of the Ministry of Health. The
procedures for issuing licenses were approved by the Resolution 188. The same
procedures (including import permission for pharmaceuticals) applied to individuals
who had received medical and pharmaceutical e ducation in foreign countries.  In the
case of the existence of international agreements signed by the Republic of Armenia the
procedures specified in the agreement applied (Resolution 188, 24 July 1996). Foreign
specialists invited to implement programs  of international and intergovernmental
agreements were not subject to licensing.
(b) Imported or exported pharmaceutical products were required to  be registered in the
Republic of Armenia. The registration of pharmaceutical 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.
(c) Imported and exported pharmaceuticals should ha ve at least one year of their expiration
period remaining, except for the pharmaceuticals whose original period of expirationWT/ACC/ARM/23
Page 30
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 the general rule for conducting 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 notinclude any prohibitions or restrictions on importati on and exportation, and they did not discriminate
between domestic and foreign individuals or enterprises.  All enterprises, or branches, subsidiaries
and representations thereof that are registered an d 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 apply to the import of specific commodities.  The
additional requirements applied with respect to trade in pharmaceutical products were not restrictive,
but were maintained solely for health and safety purposes, and for ensuring the conformity of
imported pharmaceuticals with the quality standards accepted in Armenia. All requirements and
procedures were the same for both Armenian and foreign citizens or enterprises. Pursuant to the
provisions of Decree 581, in order to import pharmaceutical products into the Republic of Armenia, aperson 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 registered in Armenia, and verifying the compliance ofmedicines 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 AMD2) 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
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 thelicence.
79. The representative of Armenia further stated that any person, firm and institution wishing to
apply for an import permission could do so if they 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 requirement (as applicable). Applications forpermissions were required to be determined within ten days of receipt of an application, although inWT/ACC/ARM/23
Page 31
practice permissions could be obtained within a shorter time period.  If goods arrived without
permission, they could only be cleared throug h 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 the Government of Armenia prior to the adoptionof the Decision concerning the accession of Armenia by the WTO General Council.  This Decree
would change the duration of the period of validity 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 pharmaceutical 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 the 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 called upon to consider the application.
83. The representative of Armenia said that requests for permission could be refused if  (a) there
was incorrect and/or insufficient information in th e 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 products did not correspond to quality standards accepted
in the Republic of Armenia. Unjustified delays and refusal to issue permission could give rise to
judicial procedures within 30 days after the refusal.
84. The representative of Armenia further noted that permissions were issued for the period
necessary to carry out the engagements, but no longer than three months. The validity of a permission
could be extended upon the substantiated request of an applicant. The body issuing the permission
could suspend its validity or cancel it. Permissions 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 depending on whether an applicant was domestic orforeign in origin.
85. The representative of Armenia stated that there were no agrochemicals other than fertilizers
(HS 3102-3105) subject to mandatory conformity assessment (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 phytoprotectionchemicals should also be approved by the Inspect ion of Plant Protection office in the Ministry of
Agriculture.  The authority to make changes and amendments 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 establishment of the State Interdepartmental Committee for
Registration of Phytoprotective chemicals. Imported or exported agricultural chemicals must beregistered in the Republic of Armenia).  According 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 organization.  Import permission for agrochemical productsWT/ACC/ARM/23
Page 32
was given for an import transaction (for single use). Permission was given only to those
agrochemicals which were included in the list of phytoprotection 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 judicialprocedures, including to rights in the Code to appeal the superior body.
86. The representative of Armenia confirmed that, at the latest by the date of accession, Armenia
would provide an initial notification of all laws, regulations and other 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 apply 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 further confirmed that the legal authority of the
Government of Armenia to suspend imports and exports or to apply licensing requirements that couldbe used to suspend, ban, or otherwise restrict the 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, 29December 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 Agreement, in particular Articles 7, 8, 10, 11 and 12
thereof.
90. Noting that Armenia was a member of the World Customs Organization, the representative of
Armenia stated  that the customs valuation regime was 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,
and the Law on Customs Tariffs of 18 August 1993, and, following repeal of the Law on Customs
Duties, by the Customs Code which entered 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  the 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 Customs Duties provided a possibility of reversal of theorder of application of the valuation methods specified in Articles 5 and 6 of the Customs ValuationWT/ACC/ARM/23
Page 33
Agreement upon request of an importer. This provision 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 stated that provisions concerning such sales were
incorporated in Articles 78 and 87 of the Customs Code.  Concerning Article 11 of the CustomsValuation 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 valuation of goods.  Paragraph 4 of Article 12 of the
Law on the Customs Duties included provisions regarding the circumstances specified in Article 5.2
of the Valuation Agreement.  The relevant provisio ns were incorporated in Article 91 (Paragraph 4) of
the Republic of Armenia’s new Customs Code.
93. In response to further questions, the representative of Armenia noted that the concept of
"price paid or payable" was covered by Paragraph 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 the 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 relation to the carriage of the goods up to
customs border of the Republic of Ar menia, 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:
i) the value of materials, components, part s and similar items incorporated in the
goods;
ii) the value of tools and other similar items used in the production of the goods;
iii) the value of materials 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 border of the Republic of Armenia.
94. In response to questions concerning the exchange 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 press, as required by Article 9.1 of the Customs
Valuation Agreement.  In response to questions concerning the mechanism for protection ofconfidential 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.WT/ACC/ARM/23
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95. In response to requests for a detailed description of the process of review of the decisions
made on customs valuation of goods, the representative of Armenia said that in relation to Article 11
of the Customs Valuation Agreement, paragraphs 2 and 3 of Article 13 of the Law on Customs Duties
provided for appeal procedures on the decisions and actions of the customs bodies.  The Article
provided for appeal of a decision by the customs body to a higher customs body or to a court.  Thehigher customs body should make its decision regarding the appeal and inform the applicant about the
decision within one month.  Respectively, paragraphs  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 required 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 the National Assembly of the Republic of Armenia.
In relation to the obligation contained in Article 13 (last sentence) of the Customs ValuationAgreement, when the customs value of goods cannot be immediately determined, the former
paragraph 11 of Article 12 of the Law on Custom Duties had provided that:  when the customs bodies
deemed it necessary to verify or further scrutinize the 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 equal to the disputed amount payable, on conditionof subsequent clearance in accordance with the final decision. He further noted that the new Customs
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 Customs Code provided that the importer
upon a written request should be entitled, 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. All relevant laws would be in full conformity
with the requirements of the Agreement on Implementation of Article VII of the GATT 1994. In
particular, a legislative amendment to Article 82 of the Customs Code enacted on 25 September 2002stipulates that customs valuation shall be made in  accordance with the Interpretative 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 priorto the adoption of the Decision concerning Armenia's accession to the WTO. He confirmed that on
20 November 2002 the Parliament of Armenia had adopted the necessary amendments to the Customs
Code, which would be enacted in law prior to the adoption by the General Council of the Decision
concerning Armenia'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 rules 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 origindepended 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 the procedure of determination of the country of
origin attached to Government Decree No. 615 of 6 December 1993, the country of origin wasWT/ACC/ARM/23
Page 35
considered to be the country where entire goods had been manufactured or where they had undergone
sufficient processing.
99. The representative of Armenia added that the Customs Code incorporated relevant provisions
regulating the field of rules of origin.  The Cust oms Code was in full conformity with relevant WTO
provisions.  In particular the precise definitions of goods that were to be considered as being whollyobtained in one country, criteria of sufficient processing 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 raised 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 naturally occurring substances not included 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 country 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 taxes, 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 (goods 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 theset had been assembled or put together, if the overall value of the non-originating parts of the set did
not exceed 45 per cent of the value of the set.  According to Article 163 of the Customs Code, the
following should not be deemed as criteria of sufficient processing:
a) changes made exclusively in the meaning 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, including 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;WT/ACC/ARM/23
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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, transportation and storage of the products;
i) affixing of marks, labels or other distinguishing signs of the like on products or their
packaging;
j) obtaining of products through mixi ng 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 referred 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 oforigin did not pursue, directly or indirectly, any trade 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 for imports from CIS countries as well as from non-CIS
countries.  According to Article 168 of the new Customs Code the absence of a certificate of origin byitself could not be the only reason to deny the entry 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 officials 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 wi th the method of determination 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.
102. The representative of Armenia confirmed that from the date of accession its laws and
regulations on rules of origin would be in conformity with provisions of the Agreement on Rules ofOrigin and other WTO provisions including the requirements of Article 2(h) and Annex II, paragraph
3(d).  In this regard, he also confirmed that for 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 person with a justifiable cause, an
assessment of the origin of the import and outline 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 before trade in the goods concerned began, and any
such assessment would be binding for three years. He confirmed that on 20 November 2002 the
Parliament of Armenia had adopted the necessary amendments to fully implement these provisions,
which would be enacted in law prior to the adoption by the General Council of the Decisionconcerning Armenia's accession to the WTO.  The Working 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 international tender to submit competitive bids for selecting a company in
charge of implementing pre-shipment inspection to imports from all directions in 1998, no agreementwas ever signed.  The representative of Armeni a further noted that the Government of ArmeniaWT/ACC/ARM/23
Page 37
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 partic ular 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 Working Party, the Agreement on the Implementation of
Article VII (the Customs Valuation Agreem ent), 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 publish their practices and procedures as required by GATT Article X,that ruling by the firm would be advisory only to the Government of Armenia and would be
appealable to the Government and to the judiciary, that any rulings of general applicability would be
made available to WTO members and to importers and exporters upon request, and that Armenia
would, upon request of WTO Members, meet to discuss the activities of such firms and their impact
on trade with a view to resolving problems. The representative of Armenia stated that any pre-shipment inspection system would be temporary until 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, countervailing and safeguards regimes
105. In response to questions, concerning whethe r Armenia had at present an anti-dumping,
countervailing or safeguards regime, the representa tive of Armenia stated that a  draft Law on Anti-
Dumping had been submitted to the National Assembly 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 Economic Competition had also been adopted
(16 November 2000), the purpose of which was to protect and promote economic competition and toensure an appropriate environment for fair competition.  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 safeguar d measures until it had implemented and notified
to the WTO appropriate laws in conformity with the provisions of the WTO Agreements on theImplementation of Article VI, on Subsidies and Countervailing Measures, and on Safeguards.  After
such legislation was implemented and notifie d, 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 Commodities (Operations, Services) Imported and Exported from  the
Republic of Armenia regulated Armenia’s non-tariff measures on export, and operated as a form of
non-automatic export licensing.  The export permis sion 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,WT/ACC/ARM/23
Page 38
but no restrictions on these exports were currently in place. For medicines, and for certain live
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; technologies equipment and locators of nuclearmaterials (including heating materials); special non-nuclear materials and services related to it; and
ionizing radiation sources were carried out throug h authorization issued by the Government of the
Republic of Armenia. All other products could  be freely exported from 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 theGovernment did not consider that at this time, a better way existed of achieving these objectives.
108. The representative of Armenia noted that Ar menia’s non-tariff 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-restrictive regulation, designed to protect health and the
environment. Export permission procedures for pharmaceutical products were the same as importpermission procedures, and were regulated by the same 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 Communities were subject to licensing under a bilateral
agreement with the European Communities. The licensing of textile and clothing e xports to the
European Communities allowed these items to be monitored, but they were not currently subject torestrictions 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 RedBook 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.
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 permissi ons 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 had to be permitted by the Ministry of Health of
the Republic of Armenia.  According to Resolution No. 124, the exportation of rare wild animals andplants 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 Ministry of Culture. In the case of textile and clothing
exports to the European Communities, the Ministry of Trade and Economic Development would haveWT/ACC/ARM/23
Page 39
exclusive responsibility for issuing export licences. The  exportation of pharmaceuticals and/or
medicines could be refused if (a) there was incorrec t 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 registered in Armenia, (e) the quality of thepharmaceutical products did not correspond to quality standards accepted in the Republic of Armenia.
Unjustified delays and refusal to issue permission could give rise to judicial procedures.  The Ministry
of Trade and Economic Development could deny an export licence to an applicant 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 persons, 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 Armenia. As in the case of the importation of
pharmaceutical products, to receive permission for exportation of pharmaceutical products the
following documents were required:  an application form, a certificate relating to the acquisition of
the pharmaceutical products, a licence to trade in pharmaceutical products in Armenia, documentsrelating to the acquisition and sale of pharmaceutical products (contract, invoice, etc.), and a
certificate of quality issued by the producer. Permissions 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 permission would generally not be granted immediately
upon request, but in practice the necessary procedures could be completed within a day or two. Thefee for an export permission was equal one month’s minimum salary in the Republic of Armenia.
Permissions were not transferable among exporters.  A permission application and/or an exportation
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 1 24 had established a list of minimum prices each
quarter for a list of selected commodities as a reference base for tax purposes. The reference priceshad been equally applied to all export destinations.  With effect from 29 December 1995, this list only
covered ferrous and non-ferrous metals, (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 corporate tax liabilities of firms that export ferrous
and non-ferrous metals and scrap were calculated on the basis of these reference prices if the declaredexport price was below the reference amount. In this case the exporter was required also to present the
certificate of conformity of the Agency of Standa rdization Measurement and Certification (SARM). The
Customs Bodies of the Republic of Armenia were re quired 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 minimum 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 Government believed that export expansion was vital to
Armenia’s future economic viability.  For this reason, consideration was being given to various waysWT/ACC/ARM/23
Page 40
of stimulating exports, particularly 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 arranging trade fairs, promoting Armenia in the
international scene, provision of market information, conducting research activities aimed at
identifying sectors and products with export potential, etc.
115. The representative of Armenia confirmed that the Government did not maintain subsidies
which met the definition of a prohibited subsidy, wi thin 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 inconformity 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 Armenia’s industrial policy aimed to ensure more
efficient use of domestic resources within a market-oriented framework.  A central policy objectiveaffecting industry was privatization.  Approximatel y 76 per cent of formerly public-owned enterprises
in Armenia were privatized and 24 per cent remained 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 into use, but they were developing them.  In
response to requests for information concerning th e payment 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 said 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 might arise as a result of clearing arrangements weredisappearing because of the contraction (and eventual elimination) of inter-governmental clearing
contracts.   The procurement via State orders, which 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 selectedlarge enterprises, such as Armenmotor Company and Yerevan Jewellery Plant.  For analogous
purposes, tax fine arrears were written off for those 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 that because the continuing reform of policies
might indirectly confer subsidies on industries, the Government also maintained a substantially
deregulated business environment which, when combined with the Government's open investment
policies, meant that there were effectively no barriers to market contestability.  Firms were free to
enter and exit sectors on the basis of their own market-based decisions.  Additional measures designedWT/ACC/ARM/23
Page 41
to safeguard and strengthen this business environment 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 Juridical 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 Agreemen t 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 Subsidies 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 noted that, after independence, Armenia took steps to establish
and develop its national systems of standardization, metrology and certification. Relevant laws
regulating those systems were the Law on Standardization and Certification and the Law on
Uniformity of Measurements accepted by the National 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 governance, enterprises, institutions and private
entrepreneurs and defined the means for the protection 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 participants 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 entrep reneurs on issues relating to the production and
issuance of measurement instruments, and the use and repairs thereof. It was directed at protecting the
rights and rightful interests of consumers and the State from the negative impact of inaccurate results
of measurements. The Department for Standardizat ion, 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 Standardization and Certification and the Law on
Uniformity of Measurements. Being the national body in charge of the administration related to
standardization, certification and meteorology in Armenia, its responsibilities included the creation
and administration of national standardization and certification systems; the adoption of national
standards and classifiers; the application of international standards; the publication of official
information in the fields of standardization and certification; accreditation of certification bodies andtesting laboratories; dealing with appeals and 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 Conformity 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 theWTO Agreement on Technical Barriers to Trade two new laws were adopted by the National
Assembly on 9 December 1999: the Law on Standardization and the Law on Conformity Assessment
of Products and Services to the Normative Requirements (hereinafter Law on Conformity
Assessment). Governmental Decree No. 9 of 11 January 2000 on Preparation, Adoption and
Application of Technical Regulations was also adop ted. In his view, the definitions of standards and
technical regulations in these acts were in full compliance with the respective definitions in Annex 1
to the TBT Agreement. According to the Law on Standardization, implementation of standards was
voluntary.  Standards become mandatory if they are referred to in technical regulations by exclusive
reference which include those developed and maintained by agencies and Ministries other than
SARM, e.g. the Ministry of Health and the Minist ry of Agriculture.  Relevant Ministries should beWT/ACC/ARM/23
Page 42
responsible for the preparation of technical regulations according to the Law on Standardization.
Technical regulations shall be enacted within a reasonable 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 representative 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 regulations of other countries was reflected in Decree
No. 9, of 11 January 2000. Equivalent technical regulations from other countries could be
incorporated into Armenian legislation to establis h corresponding authorities which were responsible
for setting up mandatory requirements for products and services.  Only valid international standards,
recommendations and guides, or final drafts should be taken into account when elaborating national
standards and regulations.  The Law on Conformity Assessment regulated the activities for voluntaryand compulsory conformity assessment of production, goods, labours and services to normative
requirements.  The Law also established the legal basis 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 international, regional and interstate ones,
- direct implementation of ISO/IEC, ASTM, ASME, and European (EN) standards and
technical regulations for mandatory requirements in the field of conformityassessment,
- 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 Ministries, 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 protect 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;WT/ACC/ARM/23
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- the essential conditions for the state of defence and mobilization readiness.
126. The representative of Armenia noted that the National Standards Institute (CJSC) was
established under the SARM to perform standardization activities.  The main provisions of that system
and its procedures for preparation, adoption and appl ication of Armenian sta ndards were established by
national basic standards of the AST 1 series.  About    230 Armenian standards had been developed by
the technical committees and adopted by SARM sin ce 1993.  The majority of the standards applied in
Armenia were international and regional 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 Specifications", wh ich provides current information on technical
regulations and specifications and issues 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 Articles 2 and 5 to publish noti ce 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 Re public of Armenia “On Conformity
Assessment of Products and Services to the Norma tive Requirements”, technical regulations shall be
developed and approved to replace existing mandatory standards to the extent required. After 31
December 2004, all mandatory standards will expire.  With that end in view the Decree of theGovernment of the Republic of Armenia No. 852, 22 December 2000 “On approval of the schedule for
the development of technical regulations in releva nt fields in the Republic of Armenia 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 been approved and 86 technical
regulations were being developed, which amounted to 30 per cent of total number of technicalregulations to be developed by 31 December 2004.  According to Article 13, paragraph 2 of the Law
"On Standardization" national standards are voluntary.   According to Article 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 ame nd the provisions of Government Decree No 9 of
11 January 2000 that would be enacted upon accession.  According to the amendment, six months shall
be allowed following publication of a technical regu lation before its entry in to force.  According to
Article 14, paragraph 1 of the "Law on Standardizati on", 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 tec hnical regulation before it became final.  The fee
schedule for mandatory certification is set out in Order No. 91 of the Minister of Finance and
Economy of the Republic of Armenia dated 20 March 2001.
128. He further noted that the following were priorities 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 conservation of resources in fuel power engineering
systems,
- standardization of information technologies in compliance with international
standards,
- improvement of national metering standards base,
- personnel training and qualification improvement.WT/ACC/ARM/23
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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 introduction 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 rules 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 Arme nia’s accession to WTO. SARM was  cooperating with
standards organizations in other countries 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 participate through technical co mmittees in the elaboration of international and
regional standards and to apply these standards in  Armenia. According to Government Resolution,
SARM was nominated as the inquiry point.  The address of the inquiry point was:
Department for Standardizati on, Metrology and Certification
     under the Government of the Republic of Armenia
Komitasa ave, 49/2375051, Yerevan
Republic of Armenia
Tel:  3741 235 861
Fax:  3741 285 620
Email:  armstandard@sarm.am
Press@sarm.am
As stated in paragraph 5 of Government 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 Secretariat.  The notifi cation activities were taken over since 1 January 2001
by a public institution, the WTO Notification Centre in the Republic of Armenia'.  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 Assessment of Products and Services to the Normative
Requirements provided the legal basis for the conformity assessment of products, services, labour
(processes) and quality systems.  It defined the rights, obligations and responsibility of the
participants in the conformity assessment proces s.  The conformity assessment mechanisms were
fixed in that Law. The use of less expensive and less trade restrictive methods of conformityassessment, 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.  MandatoryWT/ACC/ARM/23
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certification activities are coordinated by SARM and 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 Accreditation of Certification Bodies and TestingLaboratories in the field of Conformity Assessment.  Local and foreign bodies and laboratories had
the same rights to be accredited in the National System 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 environment and human life and health, as well as the
protection of consumer rights, some products were subject to mandatory conformity assessment
according to Resolution No. 239 of 12 May 2000.  Those products were selected taking intoconsideration the reports received from the inspection bodies, the Ministry of Agriculture, the
Sanitary-Anti-epidemiological State Center, consumers, and based also on the data of research
institutes and laboratories.  Requirements for products covered by mandatory conformity assessment
in Armenia were kept to the minimum.  Mandatory certification procedures were the same for both
imported and domestic products.  Certificates were issued for product types based on testing ofsamples, 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
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.  Those 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 madeby SARM.  Procedures on recognition of certificates issued by foreign certification bodies are
regulated by Resolution No. 247 of 18 May 2000 of the Government.  Accord ing to Decree No. 247
of 18 May 2000, in considering the acceptability of foreign certificates and conformity marks, the
Council would take into consideration the availabi lity of a conformity assessment system, and the
conformity to international standards of the process 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 Decreewas prepared to amend the provisions of Government 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 rules for mutual of un ilateral recognition of foreign certificates and
conformity marks established by Decree No. 247 of 18 May 2000 on a non-discriminatory basis andbased 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 located in other WTO Members, conformity
assessment results from qualifying bodies, and other means of recognition of equivalent procedures.
In considering the acceptability of foreign certifi cates and conformity marks, the Council would take
in to consideration the availability of a conformity assessment system, and the conformity to
international standards of the process of accreditation 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 cooperation agreements on mutual recognition of
conformity assessments with appropriate bodies of several countries such as Belarus, Georgia,Kazakhstan, the Kyrgyz Republic, Moldova, the Russian Federation, Tajikistan, Turkmenistan,
Ukraine and Uzbekistan.  SARM was carrying out negotiations with appropriate bodies of otherWT/ACC/ARM/23
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countries, particularly with Bulgaria, China, India, Iran, Romania, the Slovak Republic and the United
States, to sign similar agreements on cooperation.  In the absence of agreements on mutual
recognition, Resolution No. 247 of 16 May 2000, allowed for simplified procedures on acceptance of
certificates and conformity marks issued by certifi cation bodies of other countries, if the Armenian
authorities were satisfied that conformity assessment procedures in those countries offered adequateassurance of conformity, and the safety requirements 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 hadentered 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 Environment Conservation, approved by Order of
SARM on 15 June 2001. Those Indexes defined quality indexes characterising thesafety 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 Requirements to Condensed Explosive Products.  The Decree sets
a regulation for the condensed explosive products to meet the requirements defined in
established national standards.
- AST 214-2001:  Condensed Explosive Products.  General Safety Requirement.
- GOST R 51271-99:  Condensed Explosive Products.  Method of Certification Test.
134. The representative of Armenia informed the Working Party that the following legislative acts
related to Technical Barriers to Trade were adopted 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 Requirements03.12.99
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
countries with which Armenia had signed mutual recognition Agreements, or approvals provided by
recognized independent conformity assessment bodies or agencies recognized by  the Council for
Accreditation of Certification Bodies and Testing Laboratories in the Field of Conformity
Assessment.  He further confirmed that after 31 December 2004, only those imports subject totechnical regulations developed in accordance with Armenia's standardisation regime and WTO
provisions  would be subject to mandatory certification.  Upon request of WTO Members,  ArmeniaWT/ACC/ARM/23
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would meet to discuss these measures and their impact upon trade with a view 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 accession without recourse to any transition period, and
would sign and follow the Code of Good Practi ce for the preparation, adoption and application of
standards from the date of Armenia's accession to the WTO.  The Working Party took note of this
commitment.
- Sanitary and Phytosanitary Measures
137. The representative of Armenia informed the Working party that the following legislative acts
related to Sanitary and Phytosanitary Measures 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 that 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 environment, the Government of Armenia had
introduced a list of goods, some of which fell within 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 startedthe process of elaboration of Sanitary 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, Articles 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 struggle against plant diseases, insects and weeds,transportation of toxic substances and mineral fertil izers, conditions of conservation and destruction, as
well as livestock breeding with resp ect to veterinary services.  A ccording to Resolution No.17 of the
Government (11 March 1998) the "National Agrarian Ru les" were established.  Those Rules  dealt with
the protection of the population from diseases co mmon to man and animals, the prevention and
eradication of contagious and non-contagious anim al diseases, transportation, conservation, use and
destruction of veterinary medicamen ts and disinfectants.  The list of plant pests, weeds and diseases of
quarantine significance for the Republic of Armenia was also established by this Resolution.  He noted
that Armenia accepted the SPS measures of other WT O Members as equivalent to their own, even if
those measure were different, if it had been demons trated that the alternative measures achieve an
acceptable level of SPS protection.
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 the legal, ec onomic and organisation principles of
the State Services of Plant Protect ion and Plant Quarantine of the Re public of Armenia, and regulated
relations between farms, enterprises, 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 requirements of the International Plant Protection Convention
were taken into account in the Law.  The Law also  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 Plant Quarantine was enacted on 20 March 2000.WT/ACC/ARM/23
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140. The Law on Veterinary Medicine defined the legal, 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 protection of the population from diseases common to man
and animals, and provided the population with quality products according to veterinary and sanitary
conditions. The law regulated relations between the State body in charge of veterinary medicine andenterprises, organizations, entrepreneurs, and individuals in the Republic of Armenia.  The law
established procedures of state veterinary insp ection during importation/e xportation 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 Working Party that Armenia was a member of
the International Codex Alimentarius 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 and Norms), issued by the Ministry of Health of
the Republic of Armenia.  The SanPins established limits on the amounts of toxic compounds,
additives, contaminants in the food and foodstuffs and were based on scientific data and riskassessments conducted by research institutes.  The Food Safety Law provided stabilization relating to
food activities, particularly concerning the production and reproduction, importing, exporting,
exchanging, keeping, packaging, selling as well as usage of products. He confirmed that these
requirements are developed based on sound scientific principles and maintained based on scientific
evidence.
143. The representative of Armenia confirmed th at upon accession to the WTO, Armenia would
apply its sanitary and phytosanitary requirements consistently with the requirements of the WTO
Agreement, including the Agreements on Sanitary  and Phytosanitary Measures and Import Licensing
Procedures without recourse to any transition pe riod.  Relevant WTO provisions would be applied
should Armenia decide to establish a system of plan t and animal surveillance to detect plant and animal
diseases.  The Working Party took note of this commitment.
- Trade-Related Investment Measures (TRIMs)
144. The representative of Armenia stated that Armenia 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 was replaced by a registration requirement for the
conduct of such activity.  By a decree of the President of the Republic of 4 January 1992 entitled On
Foreign Economic Activity, all enterprises registered and operating in the Republic of Armenia,
regardless of their form of ownership, had the right to conduct foreign economic activity, and are notsubject 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 the definition of State-trading set out in the
Interpretation of Article XVII of the General Agreement on Tariffs and Trade 1994, Armeniamaintained one State trading enterprise in the telecommunications sector. Basic telecommunication
services, mobile and international data transmission and value-added services had been reserved toWT/ACC/ARM/23
Page 49
Armentel, a joint-stock company owned by the Government of Armenia and a foreign private
supplier, in exchange for commitments by Armentel to develop Armenia’s telecommunications
infrastructure.
147. In response to questions whether Armenia intended to report its State monopoly of natural gas
distribution under Article XVII, the representative of Armenia replied that Armgas had not beengranted exclusive or special rights or privileges in the market for natural gas distribution.  The
Armenian network of gas distribution was privatised, 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 information 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 gas 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 State-owned enterprises and other enterprises withspecial 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 Working Party took note of these commitments.
- Free zones, special economic zones
149. The representative of Armenia stated that Armenia did not maintain any free trade zones in
which special duty privileges of any kind were granted.  Armenia had, however, established a Frontier
Trade Area in the Meghri Region, on the border with Iran.  The Frontier Trade Area was established
to promote trade between Armenia and Iran.  U nder the arrangement, Armenian enterprises were
encouraged to establish a presence in the border area and Iranian enterprises were encouraged to do
the same on their side of the frontier.  Forty citizens from each country were entitled to freely entereach other’s border areas in order to explore business and trading opportunities, but no special
customs regime or privileged duty treatment was asso ciated with any exchanges 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 any 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 inputs from tariffs and certain taxeswould be subject to normal customs formalities when entering the rest of Armenia including the
application of tariffs and taxes.  The Working Party took note of these commitments.
- Government procurement
151. The representative of Armenia informed the Working Party that government procurement in
Armenia had previously been governed by Gove rnment 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 could do so either through any procurement agent
or directly from the marketplace on their own beha lf. 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 involved the acquisition of goods and services by
government entities for their own consumption (i.e. not for resale or use as inputs into production).  InWT/ACC/ARM/23
Page 50
the past, these arrangements had sometimes invo lved 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 compliance with WTO regulati ons, 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 Pr ocurement Agency was established as the single
agency responsible for Government Procurem ent (in excess of Armenian Dram 250,000) from 2001
onward.  For the 2000 budget all Government procurement 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 Procurement, in partic ular the national treatment and non-discrimination
principles are guaranteed in conformity 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 the 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 weresatisfactory to the interests of Armenia and other members of the Agreement, Armenia would
complete negotiations for membership in the Agreement by 31 December 2003.  The Working Party
took note of this commitment.
-T r a n s i t
154. The representative of Armenia stated that Armenia permitted unimpeded and tax-free transit
of goods, with the exception of those goods whose importation was prohibited, i.e. weapons,
components used in the production of weapons, explosives, 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 with the explicit consent
of the Government of Armenia.  Transit goods remained under customs control while they were in theRepublic of Armenia.
155. He further added that the  Customs Code implemented on 1 January 2001 regulated transit
trade.   According to Article 27 of the Customs Code, 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 trade within the framework of the CIS EconomicCooperation 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 the Ukraine were under consideration.
156. The representative of Armenia confirmed that the Government would apply the laws and
regulations governing transit operations and would act in full conformity with provisions of the WTOAgreement, in particular with Article V of the GATT 1994.  The Working Party took note of this
commitment.
- Agricultural policy
157. The representative of Armenia said that as in the case of the industrial sector, the Government
of Armenia did not maintain State planning of any kind in the agricultural sector. The representativeof 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 indirectWT/ACC/ARM/23
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subsidies, and the main types of support to the agriculture sector included the following: covering
electricity charges on irrigation water supply; provision of low-interest loans to farmers and tax
exemptions (particularly exemption of VAT for producers of basic agricultural products).    There had
been some provision of cereal seeds through "seed -loans" in the past.   In addition, the Government
supported a range of activities dedicated to reparation of the irrigation network, to restructuring offinancial and communication infrastructures, to training 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 services were available to all farmers and involved
budgetary outlays.  The Government intended to further increase direct support to agricultural
producers.  He further added that the support provided to agricultural producers was aimed to assist
farmers to overcome structural and operational difficulties during the transition towards a marketoriented economy.
158. He further noted that in contrast to the relatively 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 inputs such as agricultural machines and spare parts
thereof, seeds, chemicals and fertilizers. In 1996, 66 per cent of each of these enterprises had been
privatized while 34 per cent had remained State-owned in the form authorized by the Ministry of
Agriculture (holding). Despite the fact that the competition remained somewhat constrained in the
input market, there were no restrictions to stop other suppliers from entering it. More new private
enterprises have been entering the market and increasing 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 Armenia would not seek recourse to subsidies
provided for under Article 6.2  of the Agreement on Agriculture.
161. Armenia's commitments concerning the elimination 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 zero level in the relevant part of the Schedule of Concessions onGoods.
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME
163. The representative of Armenia stated that the first 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 models and industrial designs.  An applicant not a
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 concerning the intellectual property policy of the
Government of Armenia, the representative of Ar menia stated that the Government of Armenia wasWT/ACC/ARM/23
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currently engaged in a substantial program of legislative reform.  During 1993-1994, the Armenian
Patent Office received some 3,000 applications for 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 according to National Procedure.  However, thereception of trademark applications for registration 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, "On re-registration of former Soviet Union valid
certificates for trade and service marks".
165. He further noted that in May 1997, the Armenian National Assembly had adopted the Law on
Trade and Service Marks and Appellations of Origin of Goods, and the Law on Trade Names. The
provisions of the adopted statutes were fully consistent with international norms in this area. Adistinctive feature of the first of these Laws was the legal equality established between trademarks and
service marks.  The representative of Armenia confirmed 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 Goods21.6.97
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 following legislation related to intellectual property
protection, (which included either amended or original legislation) had been prepared and enacted
with the aim of bringing Armenia's intellectual property protection regime into conformity with WTOrequirements.
Table Twelve
Legislative actDate of
EnforcementCoverage
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, 14ter of the Berne
Convention and Article 10 of theTRIPS Agreement)
Law on Trademarks, Service Marks and Appellations
of Origin of the Goods (new)20.01.00 (Articles 5 ©, 6bis, 6septies, 10 of the
Paris Convention and Articles 15,
16,17,19, 22, 23, 24, 46, 47  ofthe 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)WT/ACC/ARM/23
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Legislative actDate of
EnforcementCoverage
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 TRIPSAgreement)
Armenian Law on Protection of EconomicCompetition (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 TRIPSAgreement)
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, industrial designs, trademarks and service marks, trade
names, layout designs of integrated circuits and appellations of origin) and copyrights was the
responsibility of the Armenian Intellectual Property Agency acting within  the  Ministry of Trade andEconomic Development. The Intellectual Property Agency was responsible for approving industrial
property right applications, maintaining the State Register of industrial property rights, issuing an
official bulletin reflecting its decisions, and coop erating with foreign institutions and international
organizations. The Intellectual Property Agency was also responsible for the regime covering
trademarks.
- Participation in internationa l intellectual property agreements
168. The representative of Armenia stated that  on 22 April 1993, Armenia became a Member of
the World Intellectual Property Organization (W IPO).  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 Internationa l Registration of Marks and the Patent Cooperation
Treaty.  On 27 February 1996 Armenia became a Member of the Eurasian Patent Organization.  The
National Assembly of the Republic of Armenia ratified the Protocol relating to the Madrid Agreementconcerning the International Registration of Marks on 5 April 2000 and the Berne Convention for the
Protection of Literary and Artistic Works on 3 May 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 Convention for the Protection of Producers of
Phonograms Against Unauthorized Duplication of their Phonograms had been enacted by the NationalAssembly of the Republic of Armenia and Armenia had deposited its instrument of accession to the
Geneva Phonograms Convention on 31 October 2002.  The Convention will enter into force for
Armenia on 31 January 2003.WT/ACC/ARM/23
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- Application of national and MFN treatment to foreign nationals
169. Some members of the Working Party noted that 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 administ rative review proceedings,  dealing with the powers
of judicial branches of government, suggested that the jurisdiction of economic courts was notavailable to foreigners from outside the CIS.  In response, 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 Armenia in relation to all patent matters, including
protection of patents and legal remedies against in fringement. The  Law on Trade and Service Marks
and Appellations of Origin of Goods, and the Law on Trade Names similarly envisage full national
and MFN treatment for foreigners. This was also th e case with respect to the Law on Copyright, and
any future laws and regulations adopted in the sphere of intellectual property protection.
- Fees and taxes
170. The representative of Armenia stated that fees were 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 approximate cost of services rendered, and the granting
and protection of intellectual property rights was not subject to taxation, as any fee was collected onbehalf of the budget.  The fees for legal protection of Industrial property, established by the Law on
State Duty of the Republic of Armenia, were id entical for resident Armenians and non-residents.
- Substantive standards of protection, including procedures for the acquisition and
maintenance of intellectual property rights
- Copyright protection
171. The representative of Armenia stated that the 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 organizations which made use of artworks, such as
theatres, concert organizations, or organizations using works of arts and crafts for industrial purposes.
Copyright policy implementation was the responsibility of the National Copyright Agency, whichregistered 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 National 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 accordance  with the provisions of the Bern Convention on the
Protection of Works of Art and Literature and entered into force on 20 January 2000.  It provided
protection for the property rights of computer progra ms and compilations of data, as well as for related
rights, i.e., the rights of phonogram and videogram producers and broadcasting and 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 Working 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
distinctive feature of the first of these Laws was the legal equality established between trademarks andservice marks.  The Law set out the terms and conditions of trademark protection, the kinds ofWT/ACC/ARM/23
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trademarks that may not be registered, the procedures for registering trademarks, the rights of appeal
against decisions relating to trademarks, the circumstances in which trademarks may be used, and the
documentary requirements for registering a trademark.  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 responseto further questions, the representative of Armenia stated that as regards the provisions of Articles
16.2 and 16.3 of the TRIPS Agreement concerning well-known trade and service marks, these were
also taken into account in the Law on Trade and Service 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 Origin of the Goods which had entered into force
on 15 April 2000.
- Geographical indications, including appellations of origin
174. Some members of the Working Party asked how Armenia would protect geographical
indications under the Law on Trade and Service Marks 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 geographical indications had not explicitly mentioned
in Resolution No 4 of 19 August 1995, nor in the former Law on Trade and Service Marks andAppellations of Origin of Goods of 1997, Articl es 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 S ource on Goods (Articles 1(1), 1(2)), and the Lisbon
Agreement for the Protection of Appellations of Origin and their International Registration (Articles
2(1), 2(2), 3, 6).
- Industrial designs
175. The representative of Armenia stated that industrial designs were protected by the Law on
Patents of 1993.  In particular, the articles of the Law which established the necessary conditions forpatentability of industrial designs, were consistent with Articles 25 and 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 Article 8 of the Law on Patents of 1993 (Article 6 of
the new Law on Patents of 1999), they were nevertheless 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.
-P a t e n t s
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 in ventions 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 the Law on Patents was adopted in August 1993.
Under the law, patents were granted for inventions, utility models and industrial designs. The term of
patents for inventions was 10 years for preliminary patents, which were granted on the basis of a
preliminary examination of the invention, and 20 year s when the patent was granted on the basis of aWT/ACC/ARM/23
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substantive examination (principal patent).  These periods were counted from the date of filing.
Patents for inventions were granted subject to requirements that the object of the patent was new,
involves an inventive step and was capable of industrial 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 from the filing date.  If the application satisfied the
formal requirements, it was laid open to public inspection for a period of four months from a date of
publication, after which a preliminary patent could be granted.  A principal patent was granted
depending on the results of substantive examination, 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 request for substantive examination could be submitted
within one year after the expiration of the said seven-year period, providing the person requestingreview 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 Agreement, and requested further information on the
conformity of Armenia's system of compulsory licen sing.  In response, the representative of Armenia
said that in the interest of national security and in the public interests or in situations of emergency inthe Republic of Armenia, as well as in instances of public non-commercial use, the Government of the
Republic of Armenia was empowered to use or authoriz e third parties to use an invention, utility model
or industrial design without the consent of the pa tent 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 amendments 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 thesui 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 February 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 concerning 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 incorporated 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 EconomicCompetition” covering both the regulation of unfair competition and protection of undisclosed
information had entered into force on  15 December 2000.  By this Law the Agency of Economic
Competition was established.  This Agency was also responsible for unfair competition.WT/ACC/ARM/23
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- 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 rights were contained  in the  Law "On Protection of
Economic Competition" that had entered into force on 15 December 2000.
185. The representative of Armenia also stated that, for the purpose of combating restraints on
trade and abuses of intellectual property rights, compulsory licensing was provided for under the Law
on Patents.  Article 16 of the Law on Patents stated that if an invention, a utility 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 owner, could submit a request for a compulsory licence
to the Government of the Republic of Armenia.  In this event, the licence would  be granted, providedthat the patent owner did  not furnish 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 payments 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 courtdecision, 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 trademark owner has the right to defend the non-use of a
trademark, and block a decision to remove the property 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 court procedures were always available to deal
with legal matters relating to intellectual propert y protection. The courts were empowered to order the
payment of damages and court expenses. Other remedies 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 intellectual 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 Armenia 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. Foreigners 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 access to those remedies as Armenian nationals. TheGovernment was considering the amendment of existing 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
provisions were included in the Civil Procedure and 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 whether Armenian judicial authorities had the
authority to order injunctions or provisional measures 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 provisional measures.  Articles 15, 16 and 22 of thenew Law on Patents indicated the areas in which remedies may be sought through the courts in the
area of patent protection. Article 46 of the new Law on Trade and Service Marks and Appellations ofWT/ACC/ARM/23
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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 Courts 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 civil 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 accordance with Articles 51 to 60 of the TRIPS
Agreement.  The representative of Armenia replied that judicial authorities were empowered to takethe 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 enact ment of Section 14 "Assistance of the Customs
Bodies in the Protection of Intell ectual Property Rights" of the Customs 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 (disclosure) of an invention before the application filing,
appropriation of invention’s authorship, as well as  coercion or inclusion into collaboration of persons
not participating in the creation of an invention, could be punished  by imprisonment for a period ofup 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 achievedconformity 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 and 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 concerning 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 property 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 draft Law on Trade Marks, Service Marks and Appellationsof 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.WT/ACC/ARM/23
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195. In response, the representative of Armenia replied 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 versions 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 patent 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 was 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 andappellations of origin, after adoption of the La w on State Duty in September 1996, 7,088 applications
passed the preliminary examination and 6,506 trade and service marks were registered by the
Armenian Patent Office.  During 1997-2001, 11 applications for appellations of origin had been filed
with the Patent Office and seven appellations were registered.  Under the new legislation more than
2,000 authors, theatre and concert organizations had concluded contracts with the National CopyrightAgency.
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 confirmed that on 20 November 2002 the Parliament of
Armenia had adopted additional necessary amendments concerning national treatment and retroactiveprotection for pre-existing works which would be enacted in law prior to the adoption by the General
Council of the Decision concerning Armenia's accession to the WTO.  The Working Party took note
of these commitments.
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 rights 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 juridicalpersons, whether they were self-employed persons (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 consistent 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
countries.  A number of the arrangements were short-term in nature, designed to respond to particularWT/ACC/ARM/23
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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 its bilateral and regional trade agreements under
review, not only to ensure legal consistency, 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 information 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, Moldova, Russia, Tajikistan, and Uzbekistan).  The
treaty envisaged that signatories would move towards the establishment of a customs union and
common market among CIS countries, however, each signatory might exercise its own discretion on
the pace and timing of integration into economic structures 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, scientific, 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 information, the representative of Armenia explained
that Armenia was also a member of the Black  Sea Economic Cooperation (BSEC) Organization,
along with ten other countries (Albania, Azerbaij an, Bulgaria, Georgia, Greece, Moldova, Romania,
Russia, Turkey and Ukraine).  This agreement covered a number of fields, including economic
cooperation and trade, investment, scientific and technical 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 possibility of free trade zones in the future.  More
generally, the organization seeks to cement relations among neighbouring countries throughcooperation in such areas as transport, international payments and industrial development.
204. Some members asked whether Armenia had concluded an economic cooperation agreement
with the European Union.  The representative of  Armenia confirmed that the Partnership and
Cooperation Agreement between the European Union and Armenia had been signed on 22 April 1996,
and entered into force on 1 July 1999.  The Agreement did not provide for any trade preferences.
- Bilateral free trade agreements and trade a nd economic cooperation agreements with CIS
countries
205. In response to questions of some members about 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 bilateral free trade agreements had been ratified with the
Russian Federation (1993), Kyrgyz Republic (1995), Turkmenistan (1995), Georgia (1996), Ukraine
(1996), Kazakhstan (1999) and Belarus (2000) and became legally binding.  When the free trade
agreements were established and operationalized, tariffs 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 cooperati on agreements that Armenia signed with CIS
countries.  Most of these early agreements were negotiated annually, they envisaged free trade andthey included lists of products that the parties agreed 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.  From 1995 the practice of product commitments was
eliminated.  However, under the FTA with the Russia Federation, each party could exempt from dutyWT/ACC/ARM/23
Page 61
free treatment any export items subject to quotas, licences and export taxes.  Since Armenia did not
maintain any export restrictions (other than those ge nerally applicable for public security, health and
safety reasons), there was nothing on Armenia’s exception list under the free trade agreement.  Russia
maintained certain export restrictions which could be covered by the exception provisions of the FTA,
but in practice, these often did not apply because of the trade and economic cooperation agreementsthat Armenia also signed annually with Russia.  No other exceptions to duty-free treatment for
imports were contemplated in the Russian-Armenian free trade agreement.  Within the period after
signing of a bilateral Free Trade Agreement with Armenia (1992-1997), the Russia Federation had
substantially liberalized its foreign trade (removed quotas, 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 deviationsfrom the free trade regime between Armenia and Russia were eliminated.  There were no exemptions
from duty free treatment in the ratified bilateral agreements with Turkmenistan, Ukraine, Kyrgyz
Republic and Georgia.
- Bilateral clearing arrangements
206. In response to requests for information in relation to Armenia's barter trade agreements with
other countries, the representative of Armenia stated that barter was the essence of the remaining
clearing arrangements maintained by Armenia.  Barter arrangements had been  The Government was
committed to eliminating barter arrangements as soon  as practicable and recognized that its role as
trader or as intermediary in trade inhibited the establishment of independent 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 flows arising from barter trade agreements,  the
representative of Armenia said that the 1993 clearing arrangements involved 74 per cent of total
exports and 56 per cent of total imports. The respective figures in 1994 were 46 per cent for exports
and 29 per cent for imports.  As far as transport and payments problems were being settled, the
importance of barter trade gradually decreased and by late 1995 deliveries under the clearingarrangements were abandoned in practice.  In response 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, and none of the former barter arrangements was
recommenced. The Government of  Armenia did 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, Ira n, 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 was 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 relations .  The reciprocal investment promotion and
protection agreements sought to encourage investme nt between the parties, primarily by guaranteeing
national and more favourable treatment, 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 andWT/ACC/ARM/23
Page 62
returns from the investments, implementation of international arbitration practices in the case of
disputes between parties, as well providing guarantees against legislative changes.
210. He further noted that investment agreements had been signed with 27 governments:
Argentina, Austria, Belarus, Belgium-Luxembourg,  Bulgaria, Canada, China, Cyprus, Egypt, France,
Georgia, Germany, Greece, Iran, Israel, Switzerland, 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 the signatories.  Such agreements had also been
signed with Georgia, Iran, Tajikistan, 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 theCommonwealth 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 conduct trade with all  CIS countries, but in respect
of those countries with which Armenia did trade, Armenia imposed no taxes nor barriers on itsimports and exports of goods.  These agreements 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 GATT 1994 and Article V of the GATS in its trade
agreements, and that it would ensure that the provisions of these WTO Agreement for notification,
consultation, and other requirements concerning preferential trading systems, free trade areas, andcustoms unions of which Armenia was a member were met from the date of accession. He confirmed
that Armenia would, upon accession, submit notifications and copies of its free-trade area and
customs union agreements to the Committee on Regional Trade Agreements (CRTA).  He further
confirmed that any legislation or regulations required 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 Working Party that the Government of Armenia
would join the Agreement on Trade in Civil Aircra ft 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 that the Government of Armenia confirm that
from the date of accession, all laws, regulations, rulings, decrees or other measures related to trade in
goods or services would be published in its official publication for public review at least two weeks
prior to implementation, unless a longer period was 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 related to trade in goods or services would be
published in its official publication for public review at least two weeks prior to implementation,
unless a longer period was specified under the releva nt WTO Agreement,  and that no law, rule, etc.,
related to trade in goods and services would become effective prior to such publication.  He furtherstated that Armenia would fully implement Article X of the GATT 1994, and Article III of the GATS
and the other transparency requirements of WTO Agreements requiring notification and publication.
The Working Party took note of these commitments.WT/ACC/ARM/23
Page 63
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 Noti fication Agency in the Republic of Armenia"
had been established and was now operational.  The Agency operates within the structure of the
Ministry of Trade and Economic Development with the mandate to submit and receive notificationsrelated to the WTO Agreements, including appropriate 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.am, fax no. (374 1) 543 983, tel. no. (374 1)
543 981 and 543 982.
217. The representative of Armenia said that at the latest upon entry into force of the Protocol of
Accession, Armenia would submit all initial notifications required by an Agreement constituting part
of the WTO Agreement.  Any regulations subsequently enacted by Armenia which gave effect to lawsenacted to implement any Agreement constituting part of the WTO Agreement would also conform to
the requirements of that Agreement. The Working Party took note of these commitments.
Conclusions
218. The Working Party took note of the explanations and statements of Armenia concerning its
foreign trade regime, as reflected in this repo rt. The Working Party took note of the commitments
given by Armenia in relation to certain specific matters, which are reproduced in paragraphs 23, 29,
34, 36, 37, 47, 53, 54, 60, 64, 65, 70, 72, 73, 80, 86, 87, 97, 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.
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
WT/ACC/ARM/23/Add.2) and its Sche dules of Concessions and Commitments on Agriculture and
Goods (document WT/ACC/ARM/23/Add .1)  that are attached to the Protocol of Accession.  It is
proposed that these texts be approved by the General Council when it adopts the Report.  When the
Decision 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 agreed, therefore, that it had completed its work concerning the negotiations for the accession ofthe Republic of Armenia to the Agreement Establishing the WTO.
_______________WT/ACC/ARM/23
Page 64
ANNEX I
(paragraph 133 refers)
The List of Products Subject to Mandatory Conformity Assessment approved by the Decree
No. 239 of the Government of Ar menia of 12 May, with Amendm ents Approved by Decree No. 110
of 17 February 2001, Decree No. 297 of 12 April 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
Milk and milk products 0401, 0402, 040310, 040510, 040590, 0406
Birds' eggs 040700
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 otheraquatic invertebrates1601-1605
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'
products1902-1905 (ex. 190590 300)
Preparations of vegetables, fruit, nuts or other parts of plants 2001-2009
Miscellaneous edible preparatio ns, yeast, ice-cream, cheese
fondues2101-2105, 210690 100
Beverages, spirits and vinegar 2201-2209
Tobacco and manufactured tobacco substitutes 2401-2403
Table salt 250 100 910
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, de odorants
and antiperspirants3303-3306, 330710 000, 330720 000
Soap, washing and cleaning preparations 3401, 3402 20, 3402 90
Hydraulic brake, anti-freezing fluids and their components 381900 000, 382000 000
Articles of plastics for the conveyance, packing, tableware and
kitchenware392310-392330, 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 100WT/ACC/ARM/23
Page 65
Description CN code
Household and sanitary articles of paper, cellulose wadding or
webs of cellulose fibres, cotton481810, 481820, 481840, 560110
Men's, women's and children's pyjamas, underpants, knitted or
crocheted6107-6109, 6207, 6208
Babies' garments, knitted or crocheted 6111, 6209
 Electrodes and cored wire of base metal, for electric arc-welding 831110 900, 831120 000
Electro-mechanical domestic appliances 8509 ( ex. 850990)
Domestic electric heating apparatus, water heaters, immersion
heaters8516 (ex. 851680, 851690)
Electric apparatus for switching, protecting electric circuits, for
making connections to or in electric circuits853620 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 or93.049302 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 substancesFrom 9303 90 000
Signal flares and other devises for
 lunching of signal flaresFrom 9303 90 000
Aerosol devises (gas cylinders), sprayers charged with tear or
stimulant substancesFrom 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 thereofFrom 9306 10 000
Cartridges From 9306 21 000
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 100From 9306 30 300From 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 therefore9307 00 000
Toys 9502, 9503 (ex. 950291 000, 950299 000)WT/ACC/ARM/23
Page 66
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 Authoritie s Approved by Law “On approval of list of goods,
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
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; miscellaneous 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; prepared animal fodder, with the exception of
230910 Dog or cat food, put up for retail sail
2401 Unmanufactured tobacco, tobacco refuse
250100100 Sea water and salt in solutions
250100510 Other salt (including table salt and denatured salt) and pure sodium chloride, whether or not
in aqueous solution, as well as with additions that prevent clamminess of particles and insurefluidity of liquid salts, whether denatured or for industrial purposes (incl. refinement) exceptfor 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, kieselg uhr, 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 quantities 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
271121 Natural gasWT/ACC/ARM/23
Page 67
HS Code Brief description of goods
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; heparinand its salts; other human and animal substa nces prepared for therapeutic or prophylactic
uses, not elsewhere specified or included
3002 Human blood, animal blood prepared for therapeutic or diagnostic uses; antisera and other
blood fractions; vaccines, toxins, cultures of microorganisms (excluding yeasts) and similarproducts
3006 Sterile surgical substances for putting in stitches, 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 twoor 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 andkits, chemical contraceptive preparations based on hormones or spermicides
31 Fertilizers
3202 Tanning organic substances: synthetic, tanning inorganic substances: tanning preparations,
containing or not containing natural tanning su bstances, 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 example, 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, notexceeding 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 preparations and prepared de-icing fluids
3901 Polymers of ethylene, in primary forms
3902 Polymers of propylene or of other olefins, in primary forms
3903 Polymers of styrene, in primary formsWT/ACC/ARM/23
Page 68
HS Code Brief description of goods
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 resi ns, 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 Ch apter, not elsewhere specified or included, in
primary forms
3912 Cellulose and its chemical derivatives, not elsewhere specified or included, in primary forms
3913 Natural polymers (for example, 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 regrouping from products ofthickening 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, guayule, 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 rubber 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 pharmaceutical articles (including teats), of vulcanized rubber other than hard
rubber, with or without fitting of hard rubber
401511 Surgical gloves of rubber
41 Raw hides and skins and leatherWT/ACC/ARM/23
Page 69
HS Code Brief description of goods
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 heads, tails, paws and other pieces or cuttings),
unassembled, or assembled (without the addition of other materials), other than those ofheading No. 4303
4403 Wood in the ro ugh, whether or not stripped of bark or sapw ood, or ro ughly 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 themanufacture of walking sticks, umbrellas, tool handles or the like; chipwood and the like
4406 Railway or tramway sleepers (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 finger-jointed, of a thickness exceeding 6 mm
4409 Wood (including strips and friezes for parquet flooring, not assembled) 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 exceeding 10 cm, coated  with vulcanized 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
7005 Float glass and surface ground or polished glass, in sheets, whether or not having anWT/ACC/ARM/23
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HS Code Brief description of goods
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 andother 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 imitation jewelry; glass eyes other than prostheticarticles; 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 parts 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, notelsewhere 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, roofingframeworks, doors and windows and their balustrades, pillars and columns); aluminiumplates, rods, profiles, tubes and the like, prepared for use in structuresWT/ACC/ARM/23
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HS Code Brief description of goods
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 partsthereof, 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; parts 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 beseparately regulated
8418 Refrigerators, freezers and other refrigerating or freezing equipment, 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 linen 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; accounting 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 dispensers, coin sorting machines, coin-counting or wrapping
machines, pencil-sharpening 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 money changing machines
8481 Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like,
including pressure-reducing valves and thermostatically controlled valves
841581100841582100
841583100
841590100Air 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
841830100841840100841861100841869100Refrigerators, freezers and other refrigerating or  freezing equipment, electric or other; heat
pumps other than air conditioning machines of heading No. 8415, for use on civil aircraft
847330 Parts and accessories 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, static converters (for example, 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 similarholding devices; electro-magnetic couplings, cl utches and brakes; electro-magnetic lifting
heads
850710100850720100850730100Electric accumulators and parts thereof, for use on civil aircraftWT/ACC/ARM/23
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HS Code Brief description of goods
850740100
850780100850790100
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 inconjunction 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 cutting; electric machines and apparatus for hot
spraying of metals or sintered metal carbides
851621 Storage heating radiators
851629 Other electric space heating appa ratus and soil heating apparatus
851680100 Electric heating resistors used on civil aircraft
851810100
851821100851822100851829100851830100
851840100
851850100Microphones and stands thereof; loudspeakers, whether or not mounted in their enclosures;
headphones, earphones and combined microphone/speaker sets; audio-frequency electricamplifiers; 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 repr oducing 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 a pparatus and radio remote control apparatus
852790100 Reception apparatus for radio-telephony an d radio-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 installations or airfields (other than those ofheading 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, variable 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, lightning 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 lamps 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 circuits and micro assemblies
854389100 Flight variables recorders used on civil aircraftWT/ACC/ARM/23
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HS Code Brief description of goods
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 insulators of any materials
8547 Insulating fittings for electrical machines, appliances or equipment, being fittings wholly of
insulating material apart from any minor components of metal (for example, threadedsockets), incorporated during moulding solely for purposes of assembly, other thaninsulators of heading No. 8546; electrical conduit tubing and joints thereof, of base metallined 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, mobileradiological 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; tractorsof 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; optical 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 mate rial, 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, notspecified elsewhere in this Chapter
9014 Direction finding compasses; other navigational instruments and appliances
9015 Surveying (including phot ogrammetrical surveying), hydrographic, oceanographic,
hydrological, meteorological or geophysical instruments and appliances, excludingcompasses; 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 apparatus; psychological aptitude-testing apparatus;
ozone therapy, oxygen therapy, aerosol therapy,  artificial respiration or other therapeutic
respiration apparatus
9020 Other breathing appliances and gas masks, excluding protective masks having neitherWT/ACC/ARM/23
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HS Code Brief description of goods
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 tension generators, control panels and desks,screens, examination or treatment 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 ex ample, 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, heatmeters), 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 analysis 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 speci fied or included 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
aircraftWT/ACC/ARM/23
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ANNEX III
(paragraph 75 refers)
- Security Sector (production of explosive materials, production of weapons, trade in weapons,
collection and exhibition of weapons, acquisition of weapons, production of or trade in
narcotic drugs, anaesthetic and radioactive materials, money printing or coining, preparationor production of state medals, stamps and seals, import or export of narcotic drugs, production
of explosives or equipment for explosions, trade in explosive materials or equipment for
explosion, explosive works, production of import of or trade in fireworks materials);
- Trade Sector (organization of trading in the exchanges (non-stock));  Health Sector
(production of medicines, trade in medicines, trade in herbs, medical aid and services by
organizations or individual entrepreneurs, genetic engineering, implementation of medium
professional and high medical educational programs);
- Currency Regulation Sector (foreign currency trading, organization of foreign currency
auctions); Securities Turnover Sector (printing of securities forms, professional activities in
the securities market);
- Banking and Financial Organizations Sector (banking activities, organization of pawnshops,
activities of investment companies, investment funds, insurance activity, rendering ofcollection 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, transport, distribution of and trade in of thermalenergy; 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 programs, implementation of
secondary (full) general educational programs, implementation of special general educational
programs, implementation of higher professi onal educational programs, excluding medical
programs);
- Telecommunications Sector (rendering of telephone services, rendering of telegraphic
communication services, rendering of data transmission services, rendering services on
broadcasting of radio-television programs, production 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 programs, 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, construction, putting into operation, operation,
usage, maintenance and removing away from operation of nuclear and radioactive wastestations, sources and storage of ionizing radiat ion; works with radioactive wastes of nuclear
and radioactive materials, including transportation, usage, storage, reprocessing and burial of
such materials; import and export of nuclear, radioactive 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, theirdesigns and other documents);
- Environment Protection Sector (reprocessing, neutralization, storage, transport and placement
of dangerous wastes);
- Quality, Standardization, Certification, Meas urement Sector (production and repair of
measurement means);
- Lotteries and Price Games Sector (organization of lotteries, organization of games of chance,
organization of gambling halls);
- Transport Sector (activities of scheduled air transport, activities of not-scheduled air transport,
organization of railroad transport);WT/ACC/ARM/23
Page 76
- Urban Construction Sector (elaboration of urban construction documents in the area of capital
construction in the following fields of urban construction, 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/ARM/23
Page 77
 APPENDIX
DRAFT DECISION
ACCESSION OF THE REPUBLIC OF ARMENIA
Decision of […]
The General Council
Having regard to  paragraph 2 of Article XII and paragraph 1 of Article IX of the Marrakesh
Agreement Establishing the World Trade Organization (the "WTO Agreement"), and the Decision-
Making Procedures under Articles IX and XII of the 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 Agreement 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/ARM/23
Page 78
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 Organization (hereinafter referred to as the "WTO Agreement "), and
Armenia,
Taking note of the Report of the Working Part y on the Accession of the Republic of Armenia to
the WTO Agreement reproduced in docum ent WT/ACC/ARM/23, dated 22 November 2002
(hereinafter referred to as the "Working Party Report"),
Having regard to the results of the negotiations on the accession of the Republic of Armenia to
the WTO Agreement,
Agree as follows:
PART I -  GENERAL
1. Upon entry into force of this Protocol pursu ant to paragraph 8, the Republic 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 otherwise 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 referred to in paragraph 218 of the Working Party
Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in para graph 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 Armenia as if it had accepted that Agreement on the date of its entry
into force.
4. The Republic of Armenia may maintain 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 conditi ons of the Annex 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 th e General Agreement on Tariffs and Trade 1994
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Commitments annexed to the
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to the Republic of
Armenia.  The staging of the concessions and commit ments listed in the Schedules shall be implemented
as specified in the relevant parts 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 Concessions and Commitments
annexed to this Protocol shall be the date of entry into force of this Protocol.WT/ACC/ARM/23
Page 79
PART III - FINAL PROVISIONS
7. This Protocol shall be open for acceptance, by signature or otherwise, by the Republic of
Armenia until 10 May 2003.
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall
have been accepted by the 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 pursuant 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/ARM/23
Page 80
ANNEX
SCHEDULE CLV – REPUBLIC OF ARMENIA
Authentic only in the English language.
(Circulated in document WT/ACC/ARM/23/Add.1)
_______________
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES
LIST OF ARTICLE II EXEMPTIONS
Authentic only in the English language.
(Circulated in document WT/ACC/ARM/23/Add.2)
__________