RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/ARM/1/Rev.31 
23 February 1999 
 (99-0686) 
Working Party on the  
Accession of Armenia  
 
 
 
DRAFT REPORT OF THE WORKING PARTY 
ON THE ACCESSION OF ARMENIA 
 
Revision  
I. Introduction  
1. At its meeting on 17 December 1993, the Counc il of Representatives established a Working 
Party to examine the application of the Government of Armenia to accede to the General Agreement on 
Tariffs and Trade (GATT 1947) under Article XXXIII,  and to submit to the Council recommendations 
which might include a draft Prot ocol of Accession.  In a co mmunication dated 31 January 1995 
(WT/L/25), the Government of Arme nia applied for accession to the Agreement Establishing the World 
Trade Organization (WTO) pursuant to Article X II of the WTO Agreement. Following Armenia's 
application and having regard to the Decision adopted by the General Council on 31 January 1995 
(WT/GC/M/1),  the Working Part y 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 a nd 23-24 September 1996, 14 May 1997 [and ...] under 
the Chairmanship of H.E. Mr. D. Kenyon (Australia). 
 Information 
 
3. The Working Party had before it, to serve as  a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Armenia (WT/ACC/ARM/1), and the questions submitted by Members on the 
Armenian foreign trade regime together with th e 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: 
                                                     
 
1 In order to facilitate the identification of changes to  the earlier version of the Report additions to the 
text are shaded and deletions and struck out. WT/ACC/SPEC/ARM/1/Rev.3 
Page 2  
 
- 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 Opera ting 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 Rep ublic of Armenia Law on Excise Tax of 
 30 November 1994; 
- Law on Pledge Collateral; 
- Law on Bankruptcy of Enterprises and Indi vidual Entrepreneurs of 15 June 1995; 
- Law on Making Amendments in the Republic of Armenia Law on Corporation Tax of 19 
December 1994; 
- Draft Law on Standardiza tion and Certification; 
- Law on Patents of 21 August 1993; 
- Law on Income Tax of 8 February 1995; - Law on Land Tax of 27 April 1994; - Law on State Agrarian Inspections; - Statute of the Peasant and Collec tive Peasant Farms of 22 January 1991; 
- The Land Code of 29 January 1991; 
- Supreme Council Resolution on the Maximum Sizes of the Land Lots in Property of the Peasant 
and Peasant Collective Farms; 
- Resolution No. 581 of 16 December 1994, “On Co rroboration of the Tem porary Regulations for 
Auditing Activities in the Republic of Armenia”; 
- Government Decision of 17 January 1995, "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 Decembe r 1994, "On Rates of  the Exci se Tax"; 
- Government Resolution No. 88 of 23 February  1994, "On the Order of Submitting Statistical 
Reports Regarding the Importation and Exportati on of Services in the Republic of Armenia"; 
- Council of Ministers Resolution No. 161 of 5 Ma rch 1991, "On the Order of Exercising Diverse 
Types of Economic Activities on the Te rritory of the Republic of Armenia"; 
- Decree of the Government of the Republic  of Armenia No. 124 of 29 December 1995 On 
Non-Tariff Regula tion of the Commodities (Operations, Services) Import and Export in the 
Republic of Armenia; 
- Statement of the Central Bank of  the Republic of Armenia on Jo ining to Article VIII of the IMF 
Agreement.; 
- The Law of the Republic of Armenia of 30 June 1996, "O n Central Bank of Armenia"; 
- The Law of the Republic of  Armenia of 30 June 1996, "On Banks and Banking"; 
- The Law of the Republic of  Armenia of 10 June 1996, "On Bankruptcy of Banks"; 
- Decree of the Government of the Repub lic of Armenia No. 124 of 29 December 1995, "On 
Non-Tariff Regula tion of the Commodities (Operations, Services) Import and Export in the 
Republic of Armenia"; 
- Amendments to the Law, "On Privatization a nd Denationalization of St ate-Owned Enterprises 
and Unfinished Construction Sites"; 
- List 2 of the Resolution of the Government of the Republic of Armenia No. 415 of 1995,"On 
types of Activities that are Subject to Licensing in the Territory of the Republic of Armenia"; 
- Statute of the Ministry of Economy of the Re public of Armenia of 20 June 1996, "On Issuing 
Inferences on Minimal Pricing of Exports of Pr oducts from Ferrous and Non-ferrous Metals not 
Produced in Armenia, as  well as their Scrap";  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 3 
 
 
- Statute of the Ministry of He alth of the Republic of Armeni a of 20 June 1996, "On Issuing 
Inferences on Import and Export of Pharmaceuticals into and from the Republic of Armenia"; 
- Statute of the Ministry of Environment Prot ection and Mineral Resources of the Republic of 
Armenia of 20 June 1996, "On Issuing Inferences on Export of  Wild Animals and Plants 
Included in the Red Book (Endangered Specie s Listing) of the Republic of Armenia"; 
- Statute of the Ministry of Agriculture and F ood of the Republic of Armenia of 20 June 1996 On 
Issuing Inferences on Import of  Plant Protection Agents into the Republic of Armenia. 
- Decree of the Ministry of Health of the Republ ic of Armenia, "On Regul ation of Pharmaceutical 
Activity and Ensuring the Quality of Drugs and Medical Facilities"; 
- Programme of the Government of the Republic  of Armenia, "On Pr ivatization of State 
Enterprises and Unfinished Construction sites of the Republic of Armenia for 1996-1997";  and 
- Amendment of 1 May 1996 to Annex N 1 to Decr ee of the Government of the Republic of 
Armenia No. 615 of 6 December 1993, "On Determining the Cu stoms Duties"; 
- Law of the Republic of Armenia "On Customs Duties" of 30 December 1998;  
- Law of the Republic of Armenia "On Customs User Fees of 30 December 1998;  
- Decree of the Government of Armenia "To Defi ne the Rules for Determining the Country of 
Origin of Goods";  
- Civil Code of the Republic of Armenia of 5 May 1998;  
- Civil Procedure Code of 20 January 1998;  
- Criminal Procedure Code of 20 January 1998;  
- Law of the Republic of Armenia "On Trade Names" of 12 May 1997;  
- Law of the Republic of Armenia "On Trade and Service Marks and Appellations of Origin of 
Goods";  
- Patent Law of 21 August 1993;  
- Law of the Republic of Armenia "On 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 "O n Protection of Selection Achievements";  
- Law of the Republic of Armenia "On Legal Protection of Topographies of Integrated 
Circuits" of 3 February 1998;  
- Draft Proposals on the Amendments in the Armenian Law on Patents Dealing with the 
Provisions of the WTO Component Agreement TRIPS;  
- Regulation "On Importation of Goods Subject to Ce rtification in the Republic of Armenia into 
the Customs Territory of the Republic of Armenia" of 16 January 1998;  
- Decree No. 15 of the Government of the Republic  of Armenia "On Compulsory Certification 
of Goods and Services in the Republic of Armenia" of 16 January 1998;  
- Regulation "On Application of Certificate of  Compliance when Realising and Advertising 
(Rendering Services) the Certifie d Goods Subject to Compulsory Certification in the Republic 
of Armenia" of 16 January 1998;  
- Regulation "On Fees for the Compulsory Certif ication in the Republic of Armenia" of 16 
January 1998;  
- Decree No. 171 of the Republic of Armenia "On Establishment of Agrarian Regulations" of 
11 March 1998;  
- List of Toxic and Biological Means Permitted for the Use in the Republic of Armenia to 
Struggle Against Pests, Diseases and Weeds of Ag ricultural Cultivated Plants, Forestry and 
Ornamental Plants;  
- List of Quarantine Pests, Diseases of Plan ts and Weeds for the Republic of Armenia;  
- List of Quarantine Plants, Food, Seeds and Seedlings of Plant Origin for Quarantine 
Protection Purposes;  
- Law of the Republic of Armenia "On Agrarian State Inspections" of 15 May 1996;  
- Regulation "On Cooperation Between the Customs Authorities, Border Veterinary Inspection 
Stations and State Plant Quarantine Services of the Republic of Armenia" of 27 January 1998;  
- Draft Law of the Republic of Armenia  "On Plant Protection and Plant Quarantine";  
- Law of the Republic of Armenia "On Veterinary Medicine";  WT/ACC/SPEC/ARM/1/Rev.3 
Page 4  
 
- Government Decree No. 26 of the Republic of  Armenia "On the Measures to Ensure the 
Implementation of the Separate Articles of the Laws of the Republic of Armenia on 
"Standardization and Certification"  and the "U niformity of Measures" of 20 January 1998;  
and 
- 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.  
 
Introductory statements 
 
4. In an introductory statement, the repres entative of Armenia said that since declaring 
independence from the former Soviet Union in 199 1, Armenia had vigorousl y pursued free market 
reforms within a democratic framework, notwithst anding acute political and economic difficulties.  
Economic decline had been reflected in sharp reductions in output, falli ng incomes, reduced trade flows, 
severe shortages of energy, and sc arcity of food and other consumer goods.  Despite this adversity, the 
Government had persevered with  the economic reform programme, placing particular emphasis on 
liberalization, stabilization, and economic restructuring.  Most agricultural land was privatized shortly after independence and privatization in other sectors was moving ahead.  Demonopolization and 
deregulation had remove d barriers to private sector participa tion in all but a few areas of economic 
activity.  Price controls were only applied to a limit ed number of essential goods  and services, and were 
being phased out.  Foreign investment was encouraged.  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 end of 1993.  By the end of 1997 the annual in flation was 21.9 per cent, and the expected annual 
inflation for 1998 would fall to a level of 1 to 3 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 countri es, were central planks of the Governme nt's reform efforts.  The Government 
of Armenia believed that  these objectives could only be atta ined through open trade policies that 
emphasized specialization on the basis of international comparative advantage.  It was for this reason 
that the Government of Armenia attached priority to its accession to the World Trade Organization, and 
wished to complete negotiations for membership at the earliest opportunity. 
 
5. The Working Party welcomed Armenia's application for accession to the Agreement 
Establishing the WTO.  Several members of th e Working Party acknowledg ed that Armenia had 
undergone a rapid process concerning reform and trade liberalization wh ich, notwithstanding internal 
and external difficulties, appear ed to be succeeding in permitting economic growth.  These members  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 5 
 
 
expressed support for Armenia's inte gration into the multil ateral trading system and indicated their 
readiness to pursue the negotiations in earnest. 
 
II. Economic Policies - Foreign exchange and payments  6. 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 Ar menia stated that gross 
official reserves made up US$ 225.7 million as of 28 October 1997 and covered about 2.8 months of 
imports. Gross official reserves had risen from 0.7 months of import cover in 1994 to 2.3 months in 
1996 and were planned to rise to 3.3
. Gross official reserves had risen to  3.5 months of import cover by 
the end of 1997 1998 . On 29 May 1997, Armenia had accepted th e  Article VIII of the International 
Monetary Fund's Agreement and the obligations im plied by Sections 2, 3 and 4 thereof and has 
committed to refrain from imposing restrictions on carrying out payments and transfers, and from 
engaging in discriminatory currency  arrangements or multiple currency  practices withou t IMF approval. 
According to the Resolution No. 141 "On Foreign Ex change Regulation and Admi nistration of Control", 
there were no restrictions on cu rrent account operations. After bei ng licensed by the Central Bank 
natural persons and legal entities were allowed to act as foreign exchange dealer s. 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 excha nges, foreign exchange bureaus, etc.). Foreign 
exchange dealers and banks were free to establis h their own exchange rates for transactions. Non-
resident banks could be authorized to participate in the domestic fo reign exchange market on conditions 
equal to those set for resident banks. Legal entities  and natural persons, residents and non-residents of 
Armenia could open and hold their cu rrent accounts in foreign banks wit hout any restrictions.  Residents 
of Armenia could implement operatio ns related to movement of capita l without any restrictions unless 
otherwise specified by CBA. Non-resi dents could implement operations related to moveme nt of capital 
according to the "Law on Foreign In vestments" of the Republic of Ar menia.  All bilateral clearing 
arrangements based on barter had been eliminated. - Income Tax 
 
7. The representative of Armenia stated that acco rding to the Law on Income Tax, which entered 
into force on 1 January 1998 , personal income tax was determined by how many multiples of the 
minimum wage an individual’s income equalled.   The minimum wage was set by the decision of  the 
Government of Armenia.  Incomes belo w two times the minimum wage were tax -exempt. incomes 
from two up to ten times greater than the minimum wage, the tax rate was 12  per cent, for multiples of WT/ACC/SPEC/ARM/1/Rev.3 
Page 6  
 
the minimum wage between ten and twenty times the rate was
 18 per cent, for multiples from twenty 
to forty times the rate was 25  per cent, and for multiples above forty times the rate was 30  per cent.  
Exemptions from income tax were receipts from the sale of private property, any income received by 
pensioners, i nvalids, veterans, and handica pped individuals, social security recipients, alimony 
payments, students’ stipends, and military service pay  For based upon the annual amount of the 
taxpayer’s income. In determining the taxable inco me the following deductions could be made from a 
gross income: deductible income, personal deductions , and expenses. Gross income was deducted by 
dram 8,000 for each month during which an income was earned. The following income tax rates were 
levied on annual taxable income:  
 
Annual taxable income  Amount of income tax  
Less than dram 120, 000  15 per cent of the amount of income  
More than dram 120,000 but less than or equal 
to dram 320,000  dram 18,000 added to 25 per cent of the amount 
of income exceeding dram 120,000  
More than dram 320,000  dram 68,000 added to 30 per cent of  the amount 
of income exceeding dram 320,000  
 
The following categories of receipts were exempti ons from 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 delivering blood 
and pectoral milk or for other type of donor activities.  
 
- Land Tax 
 
8. The representative of Armenia added that the system  for levying income tax in the agricultural 
sector was different.  Private farmers paid a fixed share of their income, currently set at 15  per cent.   
stated, that the land usage in Armenia was char ged. The land tax was imposed on the private 
landowners and users of land under State property. The land tax was determined as an annual fixed 
charge for a land plot unit. For agricultural land the land tax rate was established at 15 per cent of 
calculated net income determined by the estimated cadastre 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 cadastre value of the 
land. In order to promote the development of pl ant-raising, the newly established and immature 
orchards and vineyards  were ex empted from payment of land tax.   In the event of adverse agricultural 
circumstances, in order to reduce a tax burden,  the Government, by consent of the National Assembly 
of Armenia, may reduce these liabilities or exempt farmers altogether from  taxation.  In response to 
questions from Working Party members, the represen tative of Armenia said that no differentiation 
was made between enterprises on the basis of owners hip in relation to taxation in the agricultural 
sector. Both State farms and priv ate farms paid the same taxes, which was established at the rate of  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 7 
 
 
15 per cent of calculated net income determined by th e cadastre value of the land.  The different 
system of taxation for the agricultural sector reflected the desire to impose a lesser tax  burden on the 
sector.  As long as farmers did not derive more than 25 per cent of their income from non -agricultural 
sources, they were exempted from income tax. In  accordance with the Law on Peasant and Collective 
Farms, farmers in mountainous, remote or  abandoned countryside areas may be granted tax relief.  At 
present, tax exemptions were being granted to farmers in certain border areas  grant certain tax 
exemptions to some taxpayers or to groups of ta xpayers.  In a new Draft of the Law on Land Tax, 
which was submitted to the National Assembly of Armenia, the property character of land tax was 
accentuated, and tax calculation methods were simpli fied. 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 
 
9. The representative of Armenia stated that the enterprise profit tax was imposed on all juridical 
persons operating in Armenia, including foreign e nterprises. Corporate taxes were charged at the same 
rates as personal income taxes - 12 per cent, 18 per cent, 25 per cent, and 30 per cent.  The possibility 
of establishing a single corporate tax rate was unde r consideration.  Dividend income from compan y 
dividends paid out of after -tax profits were not taxed.  New enterprises, excluding State enterprises, 
were exempted from profit tax for the first two years of their operation. Joint ventures may be able to 
secure additional tax credits for a period of s even years, depending on the share of foreign capital in 
the statutory fund of the enterprise.  Tax holiday s were granted to promote entrepreneurship and 
business activity in the country.  The credits were set at 50  per cent if foreign capital comprises ha lf or 
more of total share capital and is not less than US$100,000, and at 30  per cent if foreign capital 
accounts for 30  per cent to 50  per cent of the total (with a minimum investment of US$40,000 to 
US$100,000).  On 30 September 1997 the National Assembl y of Armenia adopted according to the 
new Law on Profit Tax, which would enter  entered into force on 1 January 1998. Under this Law , 
profit tax was imposed on residents and non-resident s. Residents would be considered the juridical 
persons and entities wit hout status of a juridical person established (State registered) in Armenia. 
Non-residents would be the juridical persons and entities without status of a juridical person 
established in foreign countries , as well as  the international organizations and ju ridical persons and 
entities without status of a juridical person established by these organizations abroad.   For residents 
the profit tax would be charged on taxable profit obtained in Armenia and abroad. For non-residents 
the profit tax would be charged on taxable profit obtained from Armenian sources. For residents Tthe 
amount of profit tax charged on taxable profit would be determined according to the following table: 
 WT/ACC/SPEC/ARM/1/Rev.3 
Page 8  
 
Amount of
 Taxable profit  Profit tax  
Less than dram 7 million  15 per cent of taxable profit 
More than dram 7 million dram 1.05 million added to 25 per cent of the 
amount of profit exceeding dram 7 million  
 
The amount of the profit tax, charged on the income from organizing and running gambling and 
lottery games, would be equal to 70 per cent of the profit obtained.  The following types of revenues 
were contemplated to be obtained from Armenian sources:  
- income obtained by non-residents from their entrepreneurial activities within Armenian 
territory;  
- passive income obtained by non-residents from residents or non-residents;  
- other income obtained by non-residents within the Armenian territory;  
In addition t The tax charged on income obtained by n on-residents from the Armenian sources would 
be levied according to the following rates:  
Type of Income: Rate (%)
 
Profit tax rate
Interests  0 per cent  
Dividends; interests  15  
Insurance offsets received in 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 incomes (e xcept incomes received from shipment 
(freight)), as well as incomes received from other Armenian sources 20 
15 per cent  
 
Taxpayers entities  engaged in production of agricultural pr oducts would be exempted from the profit 
tax payments charged on income obtained af ter realization of ag ricultural products.  , as well as the 
following entities  Besides, the profit tax exemptions woul d be granted to the following Armenian 
institutions  registered in the Tax Inspectorate would be exempted from the profit tax payments : 
- public and religious organizations ; Armenian political parties; 
- condominiums; non-profit organizations, est ablished and operated exclusively for 
religious, benevo1ent, scientific purposes, as well as  for testing for public security 
purposes , for  environmental protection, developm ent and propaganda of literature, 
culture and education,   protection of consumer rights,  promotion and organization of 
non-professional  amateur  sports, and  for protection of human,  women's, children's and 
old people's rights protection purposes  , in case if any part of the income of these 
organizations was not distributed among thei r members or other persons and was used 
solely  exclusively  for statutory purposes;  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 9 
 
 
- libraries, museums, secondary schools, boarding schools, asylums for old people's  and 
children's homes , in case if any part of the income of these organizations was not 
distributed among their members or other persons and was used exclusively for the 
statutory purposes. 
If after 1 January 1998, the actually invested share of the foreign investor in the statutory fund of the  
resident enterprise with foreign investments is at  least dram 500 mi1lion the amount of the profit tax 
levied on that resident enterprise would be reduced by: 
- 100 per cent of the profit tax amount for the two years following the investment year;  
- 50 per cent of the profit tax amount  for the period from the third up to the tenth years 
following the investment year.  
In case of termination of the taxpayer’s activities in  the period of privileges, the amount of the profit 
tax for this period would be calculated at th e full rate for the whole period of activities. 
 
Year when the established investment 
benchmark in the statutory fund of a 
resident enterprises would be fulfilled  Proportion of profit tax reducti ons from the tax liability of 
the resident enterprise with foreign investment, allowed 
for the respective years  
 100 per cent  50 per cent  
1998  1999 and 2000  2001-2008 inclusive  
1999  2000 and 2001  2002-2009 inclusive  
2000  2001 and 2002  2003-2008 inclusive  
2001  2002 and 2003  2004-2007 inclusive  
2002  2003 and 2004  2005-2006 inclusive  
2003  2004 and 2005   
2004  2005 and 2006   
2005  2006 and 2007   
2006  2007 and 2008   
2007  2008 and 2009   
 
- Property tax 
 
10. The representative of Armenia added that by the adoption of the Law on Property Tax the fixed 
assets tax was replaced by the property tax..  Th e tax applied to: (i) the assets of all enterprises as 
defined in t he Law on Enterprises and Entrepreneurial Activities, unless particular assets were the 
subject of a specific exemption by the Governme nt;  (ii) houses and other dwellings in Armenia 
belonging to citizens and non -citizens, or leased by them; (iii) cattle; and (iv) certain vehicles.  A 
range of assets and persons exempted from the tax is indicated in Article  9 and Article  10 of the Law. 
Particularly, all newly formed enterprises were exem pted from taxation during the first year after their 
registration.  The  property used for agricultural producti on purposes was also exempted from taxation.   
The property tax was a direct tax, levied on buildings  and vehicles that bel onged to natural and legal 
entities as private property or property for commercia l usage. The calculation of the tax levied on WT/ACC/SPEC/ARM/1/Rev.3 
Page 10  
 
buildings was determined based on their value (w hich was also determined according to Law on 
Property Tax), whereas the calculation of the tax le vied on vehicles was determined based on the 
power capacity of its engine. The revaluation of buildings was carried out once every three years, 
according to procedures, set out by the same Law. In cases where the value of residential building was 
less than 3 million dram, it was exempted from propert y tax. For residential buildings with a value 
above 3 million dram, respective tax ra tes were determined according to a rate scale, varying within a 
range of 0.1-0.8 per cent.  
 11. The representative of Armenia stated that in accordance with the Law on Property Tax, the property tax for juridical  persons was determined as 0.2 
- 0.8 per cent of the average annual value of 
the taxable property, and for natural persons – 0.2 per cent of the property value exceeding the amount 
of 850 times the minimum monthly wage (0.2 per cent of th e amount exceeding the non taxable part 
of the calculated value of buildings).  levied on buildings for public and production usage was 
established at 0.6 per cent of their value. For vehicles,  respective tax rates were determined at rates of 
dram 50-500, depending on their type. In the case of motor vehicles, property tax was determined, 
based not only on power capacity but also on age.   
 
- State ownership and privatization 
 12. In response to requests for information con cerning the privatization of State owned asses, the 
representative of Armenia noted that a Privatizati on Programme was adopted in January 1994.  All 
natural and legal persons are entitled to participate in the privatization programme.  That programme 
envisaged that privatization woul d take three years, with one third of State -owned productive assets 
being privatized each year.  Those targets proved over -ambitious, and privatization was now expected 
to continue at least until the end of 1997. At the beginning of the programme (1994 -1995), the State 
owned an estimated 5,000 small enterprises and about 2,000 medium - to large -scale enterprises that 
were planned to be privatized. The target of the 1996 -97 programme was the privatization of 
4,927  entities (including small enterprises), of wh ich 347 are in industry, 183 in transportation, 112 in 
construction, 16 in telecommunications, 432 in agricu lture, 7 in the material and technical (logistic) 
supply sector, 1820 in the distribution sector, 763 in the household services sector, 194 in the p ublic 
utilities sector, 485 in the social sector, 5 in autom obile maintenance sector, 46 in the natural deposits 
sector, and 122 enterprises and 395 unfinished units  of housing construction in the Yerevan 
Municipality. By the middle of September 1997, 1,17 7 medium and large enterprises and 5,301 small 
enterprises had been privatized.  The table below represented more detailed information on process of 
the privatization in Armenia from 1994 to 1997.  The representative of Armenia further noted that the 
sale of some of the 10 large State -owned firms to foreign investors through international tender were  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 11 
 
 
in process with the participation of a foreign compan y.  International tenders, supposed to be finished 
by November 1997, had been suspended partly due to the increasing interest of foreign investors in 
those firms. The situation by November 1997 was as follows:  
(i) Nairit Research Production plant had to be  privatized through international tender 
(Resolution  197, 24  June 1997)  
(ii) Plant Sapphire (the State sha re - 65 per cent) was included in the 1996 -1997 privatization 
programme  
(iii) Yerevan Cabel Company had been privatized  
(iv) Gyumry Socks factory had been privatized  
(v) Zangezur Copper - Molybdenum Enterprise was not subject to privatization  
(vi) Yerevan Automobile Production plant had been privatized  
(vii) Yerevan Jewellery plant was included in the 1996 -1997 privatization programme.  
(viii)  Armenmotor Company (the State share - 70 per cent) was included in the 1996 -1997 
privatization programme  
(ix) Yereva n Electrolamp plant was to be privatized through international tender (Resolution 202, 
24 June 1997)  
(x) Armelectromachine plant was included in the 1996 -1997 privatization programme.  
The following State -owned large firms also were subject to sale through international tender: Yerevan 
Shoe factory "Araks", "Mars" factory, "Hotels Armenia 1,2", "Ani" and "Dvin", Yerevan Brandy 
plant, "Rubin" factory in Vanadzor, Fibre Chemical  factory in Vanadzor.  Information on the Progress 
of the Privatization of State En terprises by 15  September  1997:  
stated that the process of privatization started in Armenia since the beginning of 1991, when according to 
decision of the Government 335 small enterprises in th e sphere of distribution, meals and catering, and 
other services had been privatized. The Law on Priv atization and Denationalization of Enterprises and 
Unfinished Construction Sites was adopted in 1992 whic h served as legal base for the whole legislation in 
field of privatization in the ensuing period.  The national Assembly adopted a number of Privatization 
Programmes, under the guidance of which the privatiza tion process has been carried out.  The first annual 
Programme on Privatization and Denationalization of  Enterprises and Unfinished Construction Sites was 
adopted by Parliament on 12 January 1994. That pr ogramme envisaged privatization of 1,985 large and 
medium enterprises representing various branches of Ar menian industry, as well as 2,754 small enterprises 
(in the sphere of distribution, meal and catering, and other services).  On 27 September 1995 the National 
Assembly also adopted the Programme on Privatizati on of 1995, and the adoption of that Programme was 
based on the Programme of Privatization of 1994 w ith certain amendments and changes. The next 
Programme of Privatization, adopted by the Nationa l Assembly on 20 March 1996, was envisaged for the 
years 1996-1997.  The following privatization targ ets were set by that Programme: 3,809 entities were 
offered for privatization, of which 195 were in industr y, 22 in transportation, 82 in construction, 3 in 
telecommunications, 70 in agriculture, 3 in material and technical logistics, 191 in the public utilities WT/ACC/SPEC/ARM/1/Rev.3 
Page 12  
 
sector, 2,385 in the social sector, 5 in the automobile  maintenance sector, 16 in the natural deposits sector, 
66 enterprises of the Yerevan Municipality, 1,763 in the distribution and meal serving sector, 760 in the 
household services sector, as well as 395 unfinished site s of housing construction.  The Privatization 
Programme which is currently in force was adopted  by the National Assembly in 26 December 1997 and 
was envisaged for the years 1998-2000.  Taking into acc ount that the previous Programmes of Privatization 
of 1995 and 1996-1997 were still bein g implemented, the Privatiza tion Programme of 1998-2000 was 
designated to incorporate in its privatization targets all those companies and small enterprises, which were 
included in the privatization schedules of the previous  two programmes but of which privatization was not 
accomplished by the date of enactment of the new Programme.  This amendment was stipulated by the 
necessity to ensure the uniformity of  guidance in the privatization process.  It should be mentioned that 
either previous Laws and Programme s on Privatization or the Law on Privatization of State owned Assets, 
approved by the National Assembly in 17 December 1997 did not create any legal barriers for the 
participation of foreign natural a nd legal persons in the privatizati on of State-owned assets and did not 
discriminate between foreign and Armenian natural and legal persons.  By 1 November 1998, 1,430 
medium and large enterprises had been privatized, of which 1,007 enterprises had been privatized through 
the open subscription of shares - 62 through share aucti ons, 127 were privatized to employees - 49 through 
tenders 7 of which were internati onal, 16 through auctions, and 169 were  privatized to lessees. For this 
group of enterprises the major form of privatization was open subscription of shares (practiced for 75 per 
cent of privatized entities).  Privatization of 503 enterprises failed, mainly because of high prices, poor 
business prospects and heavy indebtedness, privatizati on of 169 also failed at a second attempt.  The 
Government adopted Decisions on privatization of 1, 858 large and medium enterprises (including 15 
Decisions on dissolution of enterprises).  The followi ng enterprises were privatized through international 
tenders: "Armentel" State Enterprise, Yerevan Brandy  plant, Hotel "Armenia" and Hotel "Ani".  The 
privatization of the State power, production and di stribution network, as well as "Armenian Airlines" 
Company was anticipated.  In the power sector ten hydro-electric power stations had been already 
privatized, two of which to foreign persons.  The Ar menian network of gas di stribution was privatized, 
resulting in the establishment of "ArmRusGasArd" CS C.  The table below represents more detailed 
information on the process of the privatization accomplished in Armenia during years 1995-1998.    
  WT/ACC/SPEC/ARM/1/Rev.3
 Page 13 Open stock 
companies Closed stock 
companies Sale of assets to 
the lessee Auctions Tenders International 
tenders Companies 
dissolved In 1997  
1998  Total Unfinished 
construction 
sites 
Evaluations made         586  1,702  175  
Government’s decision 1,346 1,206  141 152 174 137 36 23 126 41 20 16 4 178 583 1.858 1,579  474 
Total: of which 1,315 1,137  141 152 174 137 34 23 121 38 19 16   1,819 1,503  93 31 
Privatization in process 17 15 2 14 1 9  12 5 7 16  59  39   
Privatization suspended 229 230 12 22  19 8 67  7   196 217 336 267 66 23 
Privatization finished 1,069 892 127 116 169 128 16 15 42 26   187 325 1,430 1,177  27 8 
Total: of which 1,315 1,137  141 152  34 23 121 38    1,819 1,503  93 31 
Industry 409 321 50 41  6 4 6 2    476 368  
Agriculture 351 323 36 35  10 9 10 3    408 370  
City construction 188 130 8 5   15 12    211 147  
Culture 30 26 6 7       36 33  
Trade and services 37 6  2     45  
Transportation 27 19 14 10       41 29  
Communication 11 10 1 2       13  12  
Health 1 0 4 5       5  
Others 21 20 5   9    35 34  
 
 Evaluations made Privatized 1994-1997 Privatized through auction Subject to sale through auction 
Small  enterprises 7.989 7,223  6,576 5,301  247 188 253 573 
 
 Paid 
(thousand drams) 
Total of which by certificates by drams Number  of certificates paid of which in 1997 by 
certificates (thousand drams) 
by drams 
Medium to large enterprises 78,195,961 35,082,916.4 39,294,740 34,893,460 38,901,221 189,456.4 1,964,737 1,744,673 1.642,880 7,978,180 38,711,111 1,929.4 
Unfinished construction site 184,240 89,568 175,300 88,800 8.940 768 8,765 4,440 62,220 73,820 3.293 748 
 Small  enterprises 24,063,215 19,156,172.7 23,405,940 18,959,980 657,275 196,192.7 1,207,776 985,478 2,054,660 5,732,900 449,546 30,666.4 
Total 102,.443,417 54,328,657.1 62,875,980 53,942,240 39,567,443 386,417.1 3,181,278 2,734,591 3,759,760 13,784,900 39,163,951 33,343.8 WT/ACC/SPEC/ARM/1/Rev.3 
Page 14  
 
 13. The representative of Armenia added that the Government continued to seek ways of 
accelerating the privatization programme.  The time limit had been shortened to one month for the 
initia tion of second stage and third stage actions for en terprises, which had not been sold in previous 
attempts.  In addition, mandatory liquidation follo wed for any enterprises that thereafter remained 
unsold.  The Government w as now entitled to sell a portion  of enterprises for money alone (rather 
than money and vouchers).  The Government ha d greater flexibility in developing methods for 
privatizing more complex entities, such as utilities.  The responsibilities and structure of the 
Privatization Commission ha ve been streamlined, and info rmation publication requirements 
simplified.  The centralized share registry has also been made operational.  there was still concern with 
effective implementation of the privatization progra mme, particularly in connection with changing the 
overall concept of privatization, and the desirability of certificate versus money privatization was 
deeply questioned.  As in other transition economie s, prompt positive effects (in two to three years) 
from privatization proved to be overstated, and a mo re realistic approach currently prevailed which 
was oriented at maximization of money gains from priv atization.  From this point of view the mixed 
approach recently became more preferable, simulta neously ensuring a progressive increase of the 
share of money privatization in total.  Accordi ng to the new Law on Privatization of State-owned 
Assets the Authorized Privatization Body, and th erefore the Government, was entitled to a greater 
flexibility in privatizing each single, with respect to the choice of the form of privatization, as well as 
with respect to the terms of payment for privatized  assets.  The Government also began the process of 
dissolution of those enterprises whic h had been offered for privatization according to legislation and 
of which the privatization had failed.  The tran sparency of information relating to privatized 
enterprises was ensured.  Detailed information on pr ivatized enterprises was r eadily available in the 
mass media.    
 
14. In response to a further question, the repr esentative of Armenia stated that Armenia had 
privatized almost 90 per cent of agricultural land and made land titles freely transferable.  The small share of land still in State hands is reserve land and land used for certain kinds of agricultural support 
activities described in paragraphs  101-104 below.  The Government of Armenia did not have a 
timetable for the privatization of agricultural land still in State hands.  15. The representative of Armenia confirmed that to ensure full transparency and to keep WTO 
members informed of its progress in the reform of its transforming economic and trade regime, 
Armenia would provide annual reports to WTO Me mbers on developments in its programme of 
privatization along the lines of the information provi ded to the Working Party, and on the other issues 
related to its economic  reforms as relevant to its  obligations under the WTO.  The Working Party took 
note of this commitment.  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 15 
 
 
 - Investment regime 
 
16. The representative of Armenia stated that the 1994 Law on Foreign Investments regulated 
Armenia’s policies towards foreign investment.  The Law was designed to attract investment from 
foreign sources.  It provided guarantees against na tionalization and provided that confiscation could 
only take place following a judicial decision.  In th e unlikely event of confiscation, full compensation 
would be payable.  Foreign investors were inde mnified against damages resulting from illegal actions 
by Government, or from the improper performance by  Government of its obligations (as determined 
in a Court of Law).  The Law also guaranteed investors the right to repatriate profits and assets without hindrance.  In the event that foreign invest ment legislation was cha nged after an investment 
has occurred, the investor concerned was entitled to  an exemption from any less favourable provisions 
during a five-year period.  17. The representative of Armenia further noted that after
 from  1 January 1998 the following 
measures will modify the profit tax levied for forei gn investors.  If the share of foreign investors in the 
statutory fund is at least 500 million drams, the profit tax of enterprises with foreign investments will 
be reduced by:  
- 100 per cent of the profit tax amount for the 2 years following the year of 
investment;  
- 50 per cent of the profit tax amount from the third to the tenth  years following 
the year of investment.  
the Law on Profit Tax introduced a new order for the taxation of the profit of enterprises with foreign 
investments in accordance with whic h, if the share of foreign investors in the statutory fund is at least 
500 million dram, the profit tax of en terprises with foreign investment s will be reduced by 100 percent 
of the amount of profit tax for the two years follow ing the year of investment.  The reduction of the 
profit tax for the following years is show n in the Table in paragraph 9 above.   In case of termination of 
the enterprises with foreign investments in the peri od of these ten years the profit tax for the privileged 
period would be calculated at full amount for the w hole period of their activity . Enterprises with any 
foreign ownership had been entitled to indefinite  duty-free treatment on all their imports of capital 
equipment and recurrent inputs. According to the Decr ee No. 124 the privileges for foreign investors on 
the licensing of the products for import and e xport activities were exempted, and the following 
procedure established: the non-tariff  regulations of the unified 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.  Foreign inve stors were free to choose their own insurers.  No 
investment performance requirements are maintained.  There were no requireme nts for foreign investors 
to export a certain amount of product, and the Go vernment did not intend to introduce any such 
requirements. Foreign investors received full national treatment. WT/ACC/SPEC/ARM/1/Rev.3 
Page 16  
 
 18. The representative of Armenia stated that any restrictions on investment  were generally applied 
on a non-discriminatory basis as be tween national and foreign investor s. By the Constitution of the 
Republic of Armenia the fore ign citizens and persons without citizenship did not have the right to own 
land. 
 
- Pricing policies  19. In response to requests for an update on th e progress of price reform, the representative of 
Armenia stated that since 1995, al most all government-manda ted price controls had been removed.  The 
only domestic prices that were still subject to control
 regulation  were those for irrigation, urban 
electrical transport, electricity, hot water, gas, he ating, sewage services, garbage collection, rent in 
State-owned housing, and telephone services.  Those prices were st ill subject to cont rol regulation  
because State-owned enterprises were the exclusive or dominant suppliers.  All administered prices were adjusted on a regular basis to maintain their real va lue.  The only remaining direct price control was on 
flour (through the setting of maximum profit margins fo r flour mills).  Minimum export prices were in 
place for ferrous and non-ferrous meta l scrap, but only for the purpose of calculating the corporate tax 
liabilities of enterprises dealing in these scrap metals.  20. 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 consum er subsidies) were under review.  In the case of 
district heating, which less than one-third of househ olds actually receive, the issue of provision of 
targeted heating subsidies to vulnera ble groups would be resolved as part  of the overall reform of social 
assistance. 
 
21. The representative of Armenia confirmed that as of the date of accession price controls on 
products and services in Armenia have  been eliminated with the excepti on of those listed in paragraphs 
19 and 20 of this report, and that in the application of such controls, and any that are introduced or re-
introduced in the future, Armenia will apply such measures in a WTO-consis tent fashion, and take 
account of the interests of expor ting WTO members as provided for in  Article III:9 of the GATT 1994. 
He also confirmed that the goods a nd services listed in paragraph 19  and 20 had been published in the 
Government’s official newspaper and any products subject to State price controls in the future, including 
any changes in the initial list reported at the time  of accession, would be published in the official 
newspaper.  The Working Party took note of this commitment. 
  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 17 
 
 
 III. Framework for Making and Enforcing Policies 
 Powers of executive, legislative and judiciar y, administration of policies on WTO-related 
issues 
 
22. The representative of Armenia said that that  the executive branch of Government in the 
Republic of Armenia comprises the President of the Republic, the Prime Minister and Ministers.  The 
President of the Republic is the highest executive authority.  The President of the Republic appointed 
the Prime Minister.  The members of the Government  were appointed by the President of the Republic 
upon recommendation of the Prime Minister.   The Prime Minister was responsible for the day -to-day 
runnin g of the Government, and presides over the Cabine t.  The President of the Republic was elected 
by popular vote every five years.  With the excep tion of fiscal matters, the President was empowered 
to issue decrees and orders  without the authorization of Pa rliament.  Resolutions were generally 
signed by the Prime Minister and the responsible Minister, and may require presidential approval.  
Administrative orders were signed by Ministers.  According to the new Constitution of the Republic 
of Armenia, adopted in 1995, the National Assembly adopted laws submitted for its approval by the 
Executive Branch of Government.  Such laws enter in to force after ratification by the President of the 
Republic.  This procedure applied to all legislative amendments, including those relating to the 
establishment or alteration of tariffs and taxes.   the legislature of the Republic of Armenia is the 
National Assembly, which consiste d of 190 deputies.  Upon parliamentary elections in 1999 the 
number of deputies will be 131.  The plenary powers of the National Assembly terminate in June of 
the fourth year after its elections, on an opening day of a first session of the newly elected National 
Assembly when its plenary powers commence. The deputies and the Government are authorized to 
submit Bills for approval by the National Assembly.  The National Assembly elects the Chairman by 
majority vote for the whole period of its plenary powers.  The Chairman conducts sessions, 
administers material and financial resources of th e National Assembly and ensures the performance of 
its ordinary activities.  Armenian laws were adopt ed by the National Assembly.  Laws entered into 
force upon signing by the President of the Republic and following promulgation,  if no other date was 
stipulated by respective Law.  This procedure applie d to all legislative amendments and rectifications, 
including those relating to the establishment or altera tion of tariffs and taxes.  The President of the 
Republic observed the adherence to Constitution, ensur es ordinary conduct of activities of legislative, 
executive and judiciary powers. The President of th e Republic was elected by popular vote every five 
years.  The President issued decrees and orders, wh ich were subject to impl ementation throughout the 
Republic of Armenia.  These decrees and orders sh ould not be in conflict with the Constitution and 
laws.  
 WT/ACC/SPEC/ARM/1/Rev.3 
Page 18  
 
 23. The representative of Armenia also said that the legislature of the Republic of Armenia is the 
National Assembly, or Parliament, which comprises 131 deputies.  Deputies were elected by popular 
vote every four years.  The National Assembly, unde r the authority and guidance of its Chairman, was 
responsible for approving all laws and inter -governmental agreements.  added that the Government 
carried out the executive power in the Republic of  Armenia and comprises the Prime Minister and 
Ministers. The President of the Republic appointed and dismissed the Prime Minister, 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 da y-to-day running of the Government and for 
coordination of  activities of other Ministers. The Prime Minister issued resolutions, which should be 
signed also by the Ministers, responsible for impl ementation, in cases, envisaged by the Order of 
Governmental Activities. 
 
24. The representative of Armenia said that in c onformity with the Constitution of the Republic 
of Armenia, the judiciary was independent  of the executive and legislative branches. powers were 
executed exclusively by the Courts , in accordance with the Constitution and legislation.  In executing 
justice Judges were independe nt and obeyed only to law.  The guarantor of the independence of 
judicial bodies was the President of the Republic, w ho was the Head of the Council of Justice.  The 
Minister of Justice and the Procurator General were  the Deputy Heads of the Council of Justice.  The 
Courts of general competence were the Courts of Fi rst Instance, the Review Courts and the Court of 
Appeals.  The Constitutional Court comprising  comprised  nine members, was responsible, among 
other things, for ensuring the constitutionality of decisions of th e National Assembly, decrees of the 
President, Resolutions of the Government, and tr eaties entered into by the Republic of Armenia.  five 
of which were appointed by the National Assembly, and another four were appointed by the President 
of the Republic.  The Constitutional Court adopted r esolutions and verdicts.  These resolutions were 
final, could not be challenged and entered in to force upon promulgation.  According to the 
Constitution of the Republic of Armenia, the Constitu tional Court should decide on conformity of the 
provisions of the Agreement Establishing the WTO and of other WTO Agreements with the 
Constitution of the Republic of Armenia before submitting them for ratification to the National 
Assembly.  If norms, other than those provided by the laws of the Republic, were provided in these 
Agreements then the norms provided in that Agre ement shall prevail.  International treaties and 
agreements that contradicted the Constituti on may be ratified after making a corresponding 
amendment to the Constitution.  
 
25. The representative of Armenia said that the Constitution of the Republic of Armenia contains 
transitional provisions  which were currently in for ce, pending the establishment of the judicial system  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 19 
 
 
 defined by the Constitution.  The new sys tem provides for the creation of economic courts, but these 
did not exist under the present arrangements.  Acco rding to the present arrangements, all economic 
disputes between legal persons of the Republic of  Armenia and those of other countries, including  the 
CIS, were referred to the State arbitration court and appealed to the arbiter, whose decision was final. 
Disputes between legal persons and individual citizen s were referred to people's courts and may be 
appealed to the Supreme Court of the Republic o f Armenia.  The latter's verdict may be appealed at 
the Plenary Session of the Supreme Court, which makes the final decision.  Neither the existing 
provisional arrangements, nor the permanent arrange ments set out in the Constitution, contemplate 
differenti al treatment between CIS and non -CIS legal persons.  At the same time the respective 
Committees of the National Assembly, as well as the interested ministries and agencies of the 
Government of the Republic of Armenia we re elaborating the Codes and Laws nec essary for the 
implementation of the judiciary system.  The bulk of these provisions were scheduled to be adopted 
by the end of the first half of 1998.  Economic litigation in particular shall be handled through the 
Criminal Procedure and the Civil Procedu re Codes under preparation .  According to Armenian 
legislation, all economic disputes between legal persons of the Re public of Armenia and those of 
other countries, including CIS countries, were re ferred to the Stare arbitration.  Beginning from 
1 January 1999 these disputes would also be referred  to the jurisdiction of the Courts of general 
competence.  Disputes between legal persons and in dividual citizens were referred to the Courts of 
general competence and may be appealed by order stipulated by Armenian legislation. Armenian 
legislation did not contemplate any differential treatment between CIS a nd non-CIS legal persons. 
Resulting on-going judicial and legal reforms a number of legislative acts were developed and 
adopted.  In particular, economic litigation shall be  handled through the new Civil Procedure and new 
Criminal Procedure Codes, which had been enact ed on 17 June 1998 and 1 July 1998 respectively, 
and had entered into force on 12 January 1999..  
 
26. The representative of Armenia added that according to  as a result of  the changes in the 
structure of the Government in mid 1997, the Ministry of Industry and Trade had  undertook  the 
primary responsibility in most aspects of policy aff ecting international trade in goods and services. 
The Ministry of Finance and Economy had overall  was responsible for fiscal policy, but decisions on 
tariffs were made together with the Ministry of I ndustry and Trade.  When the implementation of the 
fiscal policy required the introduction of amendments in the laws in effect or the adoption of new 
laws, the Government of the Republic of Armenia mu st submit the relevant legislative proposal to the 
National Assembly, for its approval.   The Central Bank was responsible for monetary policy, 
exchange rate policy and the banking system. Within the structure of the Ministry of Industry and WT/ACC/SPEC/ARM/1/Rev.3 
Page 20  
 
 Trade
 Tthe Armenian Patent Office was responsible for industrial property protection matters, and the 
Armenian National Copyright Agency was responsible  for copyright protection. 
 
27. The representative of Armenia said that in matters of policy affecting trade in goods and services, the Central Government retained full authority.  Local administration bodies had no 
jurisdiction whatsoever in establishing taxes or regulations pertain ing to goods and services.   Within 
the framework of the process of Armenia's accessi on to the WTO, the obligations assumed by the 
Government of the Republic of Armenia were s ubject to implementation throughout the Republic of 
Armenia.  Under the new Consti tution, the Constitutional Court was required to ensure compliance of 
the provisions of the WTO Agreement, as an inte rnational treaty, with the Constitution of the 
Republic of Armenia.  If norms were provided in these treaties other than those provided by the laws 
of the Republic, then the norms provided in the tr eaty shall prevail.  International treaties that 
contradicted the Constitution may be ratified after making a corresponding amendment to the 
Constitution.  
 
28. The representative of Armenia confirmed that following signature and ratification of 
accession all WTO Agreements would dir ectly have the authority of law  after the legal conclusion of 
Armenia’s WTO Accession and entering into force of all WTO Agreements in Armenia they would 
be enacted within the Republic of Armenia and the laws and legislative instruments necessary for the 
application of these  provisions would be adopted within  as provided in the Protocol of Accession. The 
Working Party took note of these commitments. 
 
IV. Policies Affecting Trade in Goods - Market Access Negotiations  29. Armenia undertook negotiations on market acc ess 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 Draft Protocol of Access ion of Armenia. 
 
- Registration requirements 
 
30. The representative of Armenia informed the Working Party that with certain exceptions necessary to safeguard human, animal and plant he alth and the environment, the former State monopoly 
in foreign trade in Armenia was abolished in 1989,and was replaced by a regist ration requirement for the 
conduct of such activity. Enterprises or privat e entrepreneurs engaging in trading (including  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 21 
 
 
 importation) were required to be registered in the State Register of Enterprises. By a Decree of the 
President of the Republic of Armenia of 4 Janu ary 1992 entitled On Foreign Economic Activity, all 
enterprises or branches, subsidiaries and representati ons thereof registered and operating in the territory 
of Armenia, regardless of their fo rm of ownership, were granted th e right to conduct foreign economic 
activity without any additional registration requireme nts. The State registra tion 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 proce ss were defined in the La w on State Register of 
Enterprises of 2 September 1993. The founder(s) of an enterprise or authorized  persons thereof, in 
accordance to  Article 12 of the Law on State Register of Enterprises, should submit to a local division 
of the State Register of Enterprises the following documents: the application of the person(s) founding 
the enterprise, the founding documents drawn up in complianc e with the legislation of the Republic of 
Armenia, and if needed, the licence to engage in the type of activity in question, to which effect an 
entry is made in the record log.  submit the following documents to the regional department of the 
State Register: application;  statutory documents;   license on activity if necessary;  the resolution on 
the registration of the firm's name by the Patent Office of Armenia, as well as the document affirming 
the payment of the State fee.   Upon the verification of submitted do cuments the information required by  
Article 11 of the same law was entered on a State regi stration card and forwarde d to the central body of 
the State Register for the purpose of uniform codifica tion, granting of State regi ster number and issuing 
a certificate of State registrati on.  The State registration was verified by the State Registration 
Certificate given by the State Register.  Any ch anges and amendments in statutory documents, or 
changes in any data entries verified by State regist ration, were also subject to State registration. For 
the purpose of intermediate, the following documents  should be submitted to the regional department 
of the State Register:  application;  resolution of the governing body of enterprises on making changes 
and amendments in statutory documents;  docum ent containing these changes and amendments, as 
well as the document affirming the payment of the State fee.   In the case when any alterations and 
additions were made in the fo unding instruments of the enterprise, it  was necessary to undergo current 
State registration, which required submission of relevant documents concerning changes.   A n y  
entrepreneural activities without State registratio n were prohibited in the Republic of Armenia.   
Natural persons were permitted to import limited qua ntities of items into Ar menia for personal use 
without registration, although for a sale  thereof they must be registered as sole entrepreneurs.  Individual 
entrepreneurs could conduct business operations foll owing registration in accor dance with Article 4 of 
the Law on State Register of Enterprises.  In order to conduct economic activity in the territory of the 
Republic of Armenia the importer was require d to establish branches, subsidiaries, repr esentations or 
create joint ventures registered in the State register of the Republic of Armenia.   Foreign enterprises 
are entitled to carry out entrepreneural activities in  the Republic of Armenia through their branches, WT/ACC/SPEC/ARM/1/Rev.3 
Page 22  
 
 affiliates and subsidiaries, registered in the State re gister of Enterprises of Armenia, as well as through 
joint ventures.   No registration was required in Armenia fo r any enterprise operating from outside the 
national territory as an exporter to Armenia. 
 31. The representative of Armeni a confirmed that the former St ate monopoly in foreign trade in 
Armenia had been abolished and that no restrictions on the right of fo reign and domestic individuals and 
enterprises to import and export goods and services within Armenia’s customs territory existed, except 
as provided for in WTO Agreements; that individuals and firms were not restricted in their ability to 
import or export based on their registered sc ope of business; and that the objective and non 
discriminatory  criteria for registration of companies in Arme nia were generally applicable and published 
officially and generally availabl e to traders for their review. The Working Party took note of these 
commitments.  
- Customs tariff 
 
32. The representative of Armenia stated that the Law on Customs Tariffs, approved by Parliament 
in August 1993, provided legislative authority for setting tariffs and dealing with customs matters.  
Decree No. 615 issued by the Government in Dece mber 1993 introduced new customs duties, and these 
were further modified by Decree No. 224 issued in May 1994 and by Decree No. 39 issued in January 
1995. According to the new Constitution of the Republic  of Armenia, adopted in 1995, the alterations to 
the Tariff were required to be  approved by the National Asse mbly upon presentation of the 
Parliamentary Permanent Financial Credit, B udgetary and Economic Commission. The Law on 
Customs Tariffs Rates, adopted by the National Asse mbly in April 1997, introduced the new list of 
customs duties, which were now in operation. The latest rectification of the Law on Customs Tariffs was 
accomplished by the adoption of the Law on Amendments to the Law on Customs Tariffs in 
September 1997.  The Draft Law on Customs Duties had been submitted for approval by the National 
Assembly.  The Draft Law on Customs Duties covered the following sections:  customs duties and types 
thereof;  customs valuation;  customs tariffs rates.  Thus an integration of several existing laws and 
legislative acts had been made, including the Law on Customs Tariff s of the Republic of Armenia and 
the Law on Customs Tariffs Rates of the Republic of  Armenia. The Draft Law was in full compliance 
with the relevant WTO provisions.   Armenia had been using the Harmonized System of Commodity 
Classification since 1991.  
33. The representative of Armenia said that customs tariffs were expressed in ad valorem terms and 
levied on c.i.f. values.  At pres ent, 195 items were specified in Arme nia’s tariff schedu le, reflecting the  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 23 
 
 
 fact that majority of product categories identified  at the two-digit level of the Harmonized System 
carried the same rate of duty. In response to questions from Working Part y members concerning the 
possibility of disaggregating the tariff to the four or  greater digit level, the representative of Armenia. 
stated that as a result of ongoing disaggregation the former number of 132 items had been increased up 
to the present number of 195. The representative of Armenia further added that if it proved necessary the 
Government of Armenia would cont inue disaggregating its tariff sche dule from its present level. After 
adoption of the new Law on Customs Tariffs Rates th e previous system of five tariff rates was 
terminated and only two tariff rates remained - zero and 10 per cent.  More than fifty per cent of the 
items in the tariff schedule were subject to duty rate  of zero (98 items) with  remaining 97 items subject 
to 10 per cent duty rate.  After taking account of tari ff exemptions (e.g. for humanitarian supplies, etc.) 
together with zero -rated items, the  weighted average tariff was below 5 per cent.   Taking into account 
the volume of imported goods belonging to each of those groups, the weighted average tariff was about 
4 per cent. Tariff revenue was projecte d to account for about 10.7  9.79  per cent of the Government's 
total tax collections and about 7.4  8.19  per cent of the total budget reve nue in 1998.  Estimated figures 
for 1999 were 10.05 per cent and 8.63 per cent, respectively.  
 
34. The representative of Armenia stated that the rates of customs duty would not be increased beyond levels bound in Armeni a’s WTO Schedule of Concessions, whic h is annexed to the Protocol of 
Accession of Armenia.  The Working Party took note of this commitment. 
 
- Other duties and char ges levied on imports 
 
35. The representative of Armenia informed the Wo rking Party that there were no other duties and 
charges levied on imports except the fees for services rendered by Customs agencies described in 
paragraphs 39-41 below. [The repr esentative of Armenia stated that  Armenia would bind all duties and 
charges, other than ordinary customs duties, at zero
 in Armenia's WTO Sche dule of Concessions,  
annexed to the Protocol of Accession of Armenia.] 
 - Tariff rate quotas 
 
36. The representative of Armenia stated that Ar menia did not apply [any import quotas, including]
 
tariff rate quotas.  The represen tative of Armenia confirmed that his Government had no plans to 
introduce tariff rate quotas. WT/ACC/SPEC/ARM/1/Rev.3 
Page 24  
 
 - Tariff exemptions 
 
37. 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. Such exemptions were granted in 
respect of the following:  - essential equipment imported by foreign enterprises and joint vent ures (with at least 30 per cent 
foreign ownership) and designated for a suppl ement of enterprises’ statutory funds;  
- goods in transit thr ough Armenian territory; 
- trucks and vehicles, regularly operating as fr eight and passenger carrie rs through the Armenian 
territory, as well as fuel, food, tools and othe r minor items necessary for temporary use to 
perform these operations; 
- foreign exchange, bonds and other securities; 
- humanitarian supplies; - specific goods temporarily impor ted to the Armenian territory and further exported without 
being processed, such as fair and exposition exhibits, commodity patterns and package, 
professional equipment of temporary visitors, advertising materials, live animals, etc.; 
- prosthetic and orthopaedic equi pment and spare parts thereof; 
- goods imported to duty-free s hops or to bonded warehouses for subsequent exportation from the 
Armenian customs territory; 
- goods and articles, imported at expense of cred its, received by the Republic of Armenia; 
- any other instances foreseen in international agreements, including free trade agreements; 
 
- Customs fees and charges for services rendered 
 
38. Some members of the Working Party stated the ad valorem  customs fee levied by Armenia on 
imports was inconsistent with the provisions of the WTO, in particul ar, Article VIII of  the GATT 1994.  
They also noted that a transition period to bring the fee into conformity with  Article VIII was not 
appropriate.  Armenia shoul d conform with the requirements of  Article VIII from the date of its 
accession, and from that time the proceeds of the fee should only be used for the operation of customs 
clearance facilities and total annual revenues fro m the fee should not exceed the cost of customs 
clearance of the imported goods.  Fo llowing accession, information on th e method of calculation of the 
fee and the cost of provision of customs clearanc e facilities should be provided to WTO Members upon 
request. 
  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 25 
 
 
 39. In response to questions from Working Party Me mbers about Armenia's system of customs fees, 
the representative of Armeni a stated that a customs fee of 0.15 per cent was charged on imported goods.  
The 0.15 per cent tax was calculated on the c.i.f. value plus applicable customs duty.  No customs fee 
was charged on importation by the Armenian Government on clearing operations made on the basis of 
international agreements, on temporary imports, on imports of raw materi als for construction under 
bilateral inter-republican cont racts, on goods imported directly  through the State budget, and on 
humanitarian aid.  Imports subject to clearing arra ngements under inte r-republican contracts signed with 
countries of the Former Soviet Un ion (FSU) had previously been exem pted from the customs fee, but 
this exemption had been discontinued, and FSU c ountries were no longer exempted from the customs 
fee.  No other import charges or fees were le vied.  Under an amendment to Decree No. 615 of 
6 December 1993, which entered into force on 1 Ma y 1996, the customs user fee was increased from 
0.15 per cent to 0.3 per cent.  In 1995, approximately  US$1 million was collecte d as customs charges.  
This revenue was used for the development of the customs administration in Armenia.  Resolution 282 
concerning the endorsement of the Statute of the re serve fund of the Customs Department, outlined how 
the fees levied were disbursed (being one of the s ources of the formation of the reserve fund): 70 per 
cent of the moneys in the reserve fund were alloca ted for and spent on the creation and strengthening of 
the material and technical basis of the system, with the objective of improving and developing the 
customs domain; 25 per cent of the moneys in th e reserve fund were allocated for and spent on the 
payroll of the employees of the customs service, pr oviding them with material incentives and improving 
their social conditions; 5 per cent of the moneys in the reserve fund were allocated to the fund of the 
head of the Customs Department, which he/she uses for contingency expenses within his/her 
jurisdiction. The Government of the Republic of Armenia adopted the Law on the Implementation of the 
Amendments and the Supplements to the Law on Cu stoms Tariffs of 18 August 1993, which entered 
into force on 19 September 1997. Under this Law th e customs user fee was charged on declared goods 
of an amount equal to 0.3 per cent of the custom s value, but no more than dram 600,000 (about 
US$1,200). The customs fee was not charged on importa tions made under credits given to the Armenian 
Government, on humanitarian aid, as well as for benevolent purposes.  
 
40. Some members of the Working Party questione d whether the 0.3 per cent fee was consistent 
with the requirements of Article VI II of the GATT 1994, in particular, whether the fee represented the 
cost of the services rendered. While agreeing that such payments are incompatible with  Article VIII of the WTO Agreement, the representative of Armenia said that the present customs fee was based on the necessity to improve the conditions of the customs serv ice.  Armenia needed a certain period of time  
(up to the end of 1998)
 to ensure the complete conformity of the customs fee with the WTO provisions. 
The Law on Customs Fee, adopted  by the National Assembly on 30 December1998, had abandoned the WT/ACC/SPEC/ARM/1/Rev.3 
Page 26  
 
 ad valorem  principle for charging customs fees
 On 1 January 1999 the customs fee  would be  and 
brought the customs user fee  into conformity with the provisions of  Article VIII of the GATT 1994. 
 
41. The representative of Armenia confirmed that  Armenia would, from the date of accession  on 
31 December 1998 had  revised  its customs fee, currently 0.3 perc ent ad valorem, with a maximum fee 
level of dram 600,000 (about US$1,200).  In this regard , As of 10 January 1999,  Armenia would 
implement a minimum and maximum  fee level that would ensure that the fee collected would 
approximate the cost of the customs services rend ered in processing imports . The fee would also be 
applied to exports and to import purchases by the G overnment of Armenia. Proceeds from application of 
the fee only would only  be used to fund import and export processing activities and only  to process trade 
subject to the fee. Total annual revenues from the fee would not exceed the cost of the customs services 
provided. Following accession, information on the me thod of calculation of the fee and the cost of 
provision of customs processing would be provided to WTO Members upon request.  The Working Party took note of these commitments. 
 - Application of internal taxes to imports 
 
42. The representative of Armenia informed the Wo rking Party that Armenia's tax system had been 
completely overhauled since 1992, as part of the Government's overall policy of economic 
transformation towards a market economy. On 14 April 1997 the National Assembly of the Republic of 
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. 
 
In particular, two indirect taxe s were imposed on imports and dome stic production in Armenia - the 
value added tax, which was
 charged on the turnover of goods and services, and the excise tax, which 
was charged  on realization of certain goods. The direct taxes included the profit tax levied on the profit 
of juridical persons, the income tax – on the incom e of natural persons, the property tax – on the 
certain types of property and the land tax imposed  on the land owners desc ribed in paragraphs 9 -13 
above.   were included in paragraphs 9-13 above, wher e the following taxes were described:  profit tax  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 27 
 
 
 and income tax, which were levied on the residents and non-residents;  property tax which was levied 
on the buildings and vehicles of natural and juri dical persons owned as a private property or for 
commercial usage;  and land tax imposed on pr ivate landowners and users of land under State 
property . 
 
- Value Added Tax 
 
43. The representative of Armenia informed that the Value Added Tax (VAT) was imposed 
pursuant to the new Law on Value Added Tax, which entered into force on 1 July  1997. This Law 
ensured co nformity of levying VAT on imported goods with the MFN principles and provided for:  
- countries;  
- principle of taxing of imports at the customs border;  
- introduction of a dedicated system of registration of VAT payers;  
- introduction of a system of tax b ills. 
after the Law on Value Added Tax en tered into force on 1 July 1997, the destination principle of VAT 
application was valid in relation to any countr y, which meant that Armenian exports to any 
destination were charged at zero rate, and any imports  to Armenia were charged at the rate of 20 per 
cent.   The VAT was charged on imports and domestic output  at the rate of 20 per cent  on the turnover 
of goods and services.   In the full value of the taxable turnove r of goods and services (including 20 per 
cent rate) the amount of the value added tax was determ ined on 16.67 per cent of the calculation rate. 
The value added tax was not calculated and levi ed by customs bodies on goods imported to Armenia 
with zero customs tariff determined by the Law on Customs Tariff Rates. The items exempted from 
VAT, in particular , included: the urban electrical transport, tuition for education in secondary schools, 
professional and higher educational institutions exercise books and music books for schoolchildren ; 
realization of children's food; scientific research wo rk; realization of the vete rinary drugs and chemicals 
used in production of agricultural products ; realization of domestically  produced agricultural products 
by the producer  insurance, reinsurance and banking activiti es; products and services imported as 
humanitarian aid as well as for charitable purposes  activities related to prov ision of pensions; some 
financial operations and services, etc .  In addition, zero-rate tax was applied to: the taxable turnover of 
goods exported outside of the customs terr itory of Armenia; the goods determined  imported  for official 
usage by diplomatic and consular representations or by equated with them other international, 
intergovernmental (interstate)  organizations, as well as goods and services ac quired by these 
organizations on the territory of Armenia; transit of foreign pay- loads through the territory of Armenia; 
construction and relevant (designi ng, research, etc.) works fulfilled  performed  at the expense of the 
resources of Armenian Diaspor a communities, foreign countries , foreign and international WT/ACC/SPEC/ARM/1/Rev.3 
Page 28  
 
 intergovernmental  (interstate)
 and non-governmental (public) an d religious organizations with in the 
scope of humanitarian aid and bene volent or other social programmes.  The full list of VAT exemptions 
was provided to the Working Party in the Law on Value Added Tax.  
- Excise Tax 
 
44. In response to the questions concerning excise tax the representative of Armenia added, that 
according to
 the Law on Excise Tax,  imposed  excise tax was imposed  on domestic and imported goods .  
Like the VAT, the  goods.   Excise tax on imported goods  was collected on imports  by the customs 
authorities, and excise tax charged  on local production was collected  by the Tax Inspectorate.  The 
National Assembly  of Armenia adopted the new Law on Excise Tax, which entered into force on 
1 July 1997.   According to this  the Law on Excise Tax, excise tax was charged on the following goods 
produced/realized in the Republic of Armeni a or imported to the Republic of Arme nia by natural and 
juridical persons and entities without status of a juridical person  imposed on natural persons and legal 
entities, as well as those enterprises without the status  of legal entity, which were producing/realizing 
in the Republic of Armenia or importing into the Republic of Armenia the following goods:  
- caviar;  
- beer; 
- grape and other  wine; 
- wine spirits, spirits and strong alcohol; 
- tobacco products cigars, cigarillos and cigarettes with tobacco and substitutes thereof;  
- gasoline; 
- diesel fuel; 
- natural leather garments and accessories;  
- fur and furskin articles (excluding workers' and military semi-coats made of sheep furskin); 
- glass crystal; 
- china, jewellery;  and  
- passenger vehicles   
- bijouterie.  
For the goods produced in Armenia the subject of taxation was  the turnover of the realization of the 
goods, based on the realization prices (without excise and value added taxes) was the subject of taxation.  
The excise tax charged on domestically produced go ods was calculated and paid by the enterprise o r 
the individual entrepreneur producin g/realizing the goods in question.   In the Republic of Armenia the 
taxpayers producing/realizing ta xable goods in Armenia were payi ng the tax charged on domestically 
produced goods  during ten working days following the realization of goods.  For the goods imported to  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 29 
 
 
 Armenia the customs value of the goods (without value added taxes and customs tariffs) was the 
subject of taxation.   For goods imported into Armenia the subj ect of taxation was the customs value of 
the goods declared by the importer (applicant) of the goods (wit hout value added taxes and customs 
tariffs).  In the Republic of Armenia  The excise taxes charged on impor ted goods were levied by the 
customs bodies in ten days after importation.   
45. The excise taxes were as follows: 
 
HS number Product description Ad valorem tax 
1604 30 100 Caviar 200 
2203 Beer 50 
2204 - 2206 Grape wine 50 
2207;  2208 Strong alcohol 125 
2402 Cigars, cigarillos and cigarettes with 
tobacco and substitutes thereof  
Tobacco  products  100 
2710 00 270 Gasoline 35 
2710 00 290   
0 320   
0 00 340   
0 00 360   
0 00 690 Diesel fuel 10 
4203 Natural leather garments  25 
4301 -  4303 Fur and  articles of furskin:  of 
which:  
430310 300 workers’ and military semi-coats 
made of sheep furskin 25 
06911 
7013 312  Glass crystal and china 25 
7113 - 7117 Jewellery 15 
8703  Passenger vehicles  15  
 
46. The representative of Armenia stated that th e Armenian Government recognized that it was a 
violation of the national treatment principle for excise  taxes on domestic products to be lower than on 
imports of the same or a like product.  Therefore,  on 1 January 1997 Armenia eq ualized excise taxes on 
domestic goods and imports of the same or like produ cts as part of the accession commitments (see the 
table in paragraph 45 above). 
 
47. Some members of the Working Party noted that  the non-application of these taxes to imports 
from FSU States may be s een 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 WT/ACC/SPEC/ARM/1/Rev.3 
Page 30  
 
 with respect to imports from all s ources.  Armenia was therefore attempting to persuade its CIS trading 
partners of the desirability of charging these taxes at destination and not origin. 
 
48. 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 ma nner consistent 
with Articles I and III of the GA TT 1994. In this regard, in accordan ce with the new Laws on VAT and 
on Excise tax, these taxes were applied at an equa l rate on domestic and imported goods and Armenia 
applied the destination principle to value-added an d excise taxes with respect to imports from all 
sources. In addition, the method of application of  all indirect taxes appl ied to imports would be 
published and readily available to importers, expor ters, and domestic produ cers. The Working Party 
took note of these commitments. 
 
- Non-tariff measures and import licensing  
49. The representative of Armenia stated th at pursuant to the Resolution No. 124, 
29 December 1995, which regulates non-ta riff measures in Armenia,  mo st imports were free of any 
prohibitions or quotas. The import restrictions were  imposed for health, secu rity, and environmental 
reasons. The items affected we re all kinds of weapons, militar y technique and the consumables 
necessary for its production, tec hnologies, equipment and locators of nuclear materials (including 
heating materials), special non - nucle ar materials and services related to it, ionizing ra diation sources, 
the importation of which was carried out through au thorization issued by the Government of the 
Republic of Armenia.  50. The representative of Armenia stated that according to the Resolution No. 124 the following 
imports are subject to licensing: 
 
 HS number 
Pharmaceutical products, medicines 13.02, 29.38, 29.41, 30.03, 30.04;  
Agricultural  Phytoprotection  
chemicals 38.08 
 
Pharmaceutical products, which were imported into th e territory of the Republic of Armenia, were 
subject to mandatory certification in accordance wi th Resolution No. 15 (19 January 1998) of the 
Government.  For this purpose, the inspection of pharmaceutical products shoul d be accomplished in 
order to verify their conformity with standards, a dopted in the Republic of Armenia, and a conformity 
certificate should be issued. The following groups  of products were listed for certification:   WT/ACC/SPEC/ARM/1/Rev.3 
 Page 31 
 
 
 Pharmaceutical products  30.01-30.06  
Vitamins  29.36  
 
51. In response to questions concerning the impor tation of pharmaceutical products and medicines, 
the representative of Armenia stated that these have to  be authorized by the Ministry of Health of the 
Republic of Armenia (except for vete rinary drugs and related products) .  The importation "agricultural 
chemicals (HS 38.08)" is required to be authoriz ed by the Ministry of Agriculture and Food.  of 
phytoprotection chemicals and veteri nary drugs (HS 38.08) should be authorized by the Ministry of 
Agriculture, moreover the authorization for impor tation of phytoprotection chemicals should also be 
sanctioned by the Inspection of Plant Prot ection in the Ministry of Agriculture. . The by-law on issuing 
authorization for importing and exportin g pharmaceuticals, stipulated that: 
- authorizations for importation of pharmaceut icals were issued by the Pharmaceutical 
Inspection  Department  of the Ministry of Health of the Republic of Armenia (except for 
veterinary drugs a nd related products) , and authorizations for importation of agricultural 
phytoprotection chemicals and veteri nary drugs and related products  w e r e  i s s u e d  b y  t h e  
Ministry of Agriculture and Food  respectively; 
- the authorizations were  for single use only; 
- to issue an authorization the following documents and conditions were required: 
(a)  the licence for commercial activities involv ing pharmaceutical products in the Republic 
of Armenia (Resolutions 161/415 and 36). The Resolutions stipulated that the 
production and wholesale and retail trade in pharmaceutic al products and medical 
utensils were subject to State licensing in  the Republic of Armenia. Resolution 36 
stipulated that: 
- pharmaceutical and medi cal activities were subject to licensing in the Republic of 
Armenia; 
- licensing was carried out by the Ministry of Health; 
- licences were issued for a period of 5 years. 
 Licences for wholesale and retail trade in pharmaceutical products and medical utensils 
were issued by the State Licensing Commi ttee of the Ministry of Health. The 
procedures for issuing licences were a pproved by the Resolution 188. The same 
licensing (including importation of pharmaceut icals and chemicals) procedures applied 
to individuals who have received medical and pharmaceutical e ducation in foreign 
countries. And in the case of the existence of international agreements signed by the 
Republic of Armenia the procedures specified in the agreement applied WT/ACC/SPEC/ARM/1/Rev.3 
Page 32  
 
 (Resolution 188, 24 July 1996). Foreign specia lists invited to impl ement programmes of 
international and intergovernmental agr eements were not subject to licensing. 
(b) Imported or exported pharmaceutical produc ts and agricultural chemicals must be 
registered in the Republic of Armenia. The registration of pharm aceutical products and 
medical utensils was performed in the Republic of Armenia according to Provisions on 
the registration of pharmaceutical products and medical utensils in the Republic of 
Armenia and the Protocol of registrati on of pharmaceutical products and medical 
utensils in the Republic of Armenia  in accordance with the recently passed Law "On 
Medicines" and in compliance with registration requirements, approved by the 
Pharmaceutical Department of the Ministry of Health.  The authority to make changes 
and amendments in the list of register ed phytoprotection chemicals allowed for 
importation was delegated to the Inspection of Plant Protection in the Ministry of 
Agriculture, pending the establishment of the State Interdepartmental Committee for 
Registration of Phytopr otective chemicals.  
(c) There must be conformity of the qua lity of imported or exported pharmaceutical 
products to the quality standards accepted in the Republic of Armenia. In this respect 
Resolutions 417 and 205 regulated the proc edures of importati on and exportation of 
products subject to obligatory certifica tion.  Resolution #15 of the Government 
stipulated the list of those products,  import ation and exportation of  which were subject 
to mandatory certification . 
(d) Imported and exported pharmaceuticals must  be good for at least two thirds of the 
period of their validity  should have at least one year of expiration period, except for the 
pharmaceuticals whose period of expiration was less than on e year (the latter should 
have at least two-thirds of the period of expiration at the time of importing) . 
 
52. The representative of Armenia further stated th at any person, firms and institutions wishing to 
apply for an import licence may do so provided they  are registered as a juridical person or a sole 
entrepreneur undertaking a business activity in Armenia,  subject to  possession of  appropriate license to 
perform pharmaceutical activities . Registration as a juridical pers on or sole entrepreneur was an 
automatic procedure, subject to no restrictions, exce pt of those activities which require a state licensing .  
Licence applications  The applications for licenses  were required to be  determined within fifteen days of 
receipt of an application.  In response to que stions from some members regarding whether licences 
could be issued more quickly, the representative of Armenia stated that since the fifteen day stipulation 
was a maximum period, in practice licences could be  obtained within a shorter time period.  If goods  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 33 
 
 
 arrived without a licence, they could only be cl eared through customs upon production of the necessary 
import licence. 
 
53. The representative of Armenia sa id that requests for authorizat ion could be refused and issued 
authorizations could be suspended if  (a   there was incorrect and/or insufficient  information in the 
presented documents,  (b)  the period of validity of  the pharmaceutical products was exceeded,  (c)  the 
production serial numbers of  imported pharmaceuticals  the actual quantity of product  did not correspond 
with the submitted quality certificates   to the quantity stated in importation documents   (d)  the imported 
pharmaceuticals were not re gistered in Armeni a  (e)  the quality of impor ted pharmaceutical products 
did not correspond to quality standards accepted in the Republic of Armenia . Unjustified delays and 
refusal to issue authorization, as well suspending and cancelling issued certificates, could give rise to 
judicial procedures within 30 days  after the refusal or suspension. 
 
54. The representative of Armeni a added that to receive an au thorization for importation of 
pharmaceutical products the following  documents were required: an application form, a certificate  
document/contract  relating to the acquisition of the pharmaceutical products, a licence to trade in 
pharmaceutical products in Arme nia, a certificate of quality issued by the producer.  To issue an 
authorization, an amount, equivalent to the minimum salary fixed by the legislation of the Republic of 
Armenia was collected and paid into the State budget.   The importation license and the conformity 
certificate were issued after the collection of a corresponding fee.   
 
55. The representative of Armenia further noted th at authorizations were issued for the period 
necessary to carry out the engagements, but no longe r than one year. The validity of an authorization 
could be extended upon the substantia ted request of an applicant. The body issuing the authorization 
could suspend its validity or cancel it. Li cences were not transf erable among importers. 
 
56. The representative of Armeni a confirmed that, from the date of accession, Armenia would 
eliminate and would not introduce, re-introduce or ap ply quantitative restrictio ns on imports or other 
non-tariff measures such as licensing, quotas, bans, permits, prior authorizati on requirements,  licensing 
requirements, and other rest rictions having equivalent effect that cannot be justified under the provisions 
of the WTO Agreement. He further confirmed that th e legal authority of the Government of Armenia to 
suspend imports and exports or to a pply licensing requirements that coul d be 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, XVIII, XIX, XX, and XXI of the GATT 1994, and the Multilateral  Trade Agreements on Agriculture, Sa nitary and Phytosanitary Measures, 
Import Licensing Procedures, Safeguards and Technical Barriers to Trade.  In this regard he also stated WT/ACC/SPEC/ARM/1/Rev.3 
Page 34  
 
 that the same kind of requiremen ts contained in Resolution No. 124, 29 December 1995 relating to 
imports  would be equally applied to  imports and to the purchase or sa le of similar do mestic products.  
Any exemptions from those requirements would be equally applied to impor ts and the output of 
domestic firms. The Working Part y took note of these commitments. 
 
- Minimum import prices  57. The representative of Armenia noted that Ar menia did not maintain a system of minimum 
import prices.  
- Customs Valuation 
 58. 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.  These 
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.  59. The representative of Armenia informed the Working Party that Armenia's system of customs 
valuation was based on the transaction value. The Ar menian regulations relating to customs valuation 
were contained in the Government Order attached  to Decree No. 615, 6 December 1993 and were 
entirely based on the provisions of the WTO Agreemen t on the Customs Valuation. At the same time the 
Armenian regulations for establishing the customs value were also reflected in the Law on Customs 
Tariffs of 18 August 1993. The latter  did not contradict the provisions of the WTO Agreement on the 
Customs Valuation.  The Regulation Order provided fo r the same six methods of valuation laid out in 
the Agreement on Implementation of  Article VII of the GATT 1994, and stipulated that the first method (transaction value) should genera lly be used.  Armenia was a member of the World Customs 
Organization.  He added that Decree No. 615 cont ained many detailed prov isions relating to the 
valuation of goods by the Customs.  In response to  questions from some members of the Working Party 
concerning Armenia's sales be tween related persons, the representative of Armenia stated that the fact 
that sales took place between relate d persons would not, of itself, prev ent use of the transaction value, 
unless it was determined that the declared invoice value did not represent the price actually paid or 
payable for goods.  Paragraph 8 of Decree No. 615 perm itted importers to seek a written explanation of 
any rejection by the customs authorit ies of a declared invoice  value as the price actually paid or payable 
in respect of an import transaction between relate d parties.  In response to  questions concerning the  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 35 
 
 
 obligation contained in Article 1.2(b) of the Ag reement on Implementation of Article VII of the 
GATT 1994, the representative of Ar menia stated that Decree No. 615 did not contain a provision 
giving effect to Article 1.2(b) of  the Agreement on Implementation of Article VII of the GATT 1994.  In 
response to further questions he st ated that Decree No. 615 provided  that damaged goods were valued 
taking into account the effects of the damage, and duties were charged on the assessed value.  No duties 
were payable on lost goods.  In response to further que stions, the representative of Armenia stated that 
no provision had been made in Decree No. 615 for the reversal of the order of application of the 
valuation methods specified in Arti cles 5 and 6 of the WTO customs va luation agreement.  Paragraph 24 
of Decree No. 615 provided for the circumstances envisaged in Article 5.2 of the WTO customs 
valuation agreement.  There were no cases so far in which the provisions of Article 5.2 have been 
implemented.  Article 6.2 of the Agreement, dealin g with access to information possessed by residents 
of other countries in the context of determining co mputed values had not been implemented by Decree 
No. 615.  In accordance with Paragraph 3 of Ar ticle 12 of the Draft Law on Custom Duties, the 
sequence of implementation of the customs valuati on methods 4 and  5 can be changed upon the request 
of importer . 
 
60. The representative of Armenia said that in relation to Article 7 of the Customs Valuation 
Agreement, paragraphs 27 and 28 of Decree No. 615 pr ovided for the determination of customs values 
when none of the other five methods  available can be applied.  Pa ragraph 27 of Decree No. 615 required 
that the customs authorities make available relevant  information when the value was determined by any 
method other than one of the five available.  In  relation to the prohibitions found in Article 7.2, 
paragraph 28 of Decree No. 615 stated that neither retail prices in the do mestic market, nor the prices of 
locally produced goods, nor export prices to third countr ies, nor any other price de termined at will or on 
an inexact basis, may be used for customs valuation purposes when  none of the five available valuation 
methods are applicable.  In response to concerns ra ised by some members of the Working Party that 
Decree No. 615 was insufficiently precise, the representative of Armenia stated that paragraph 28 of 
Decree No. 615 referring to th e determination of prices at will or on an inexact basis is intended to rule 
out the use of minimum customs values, arbitrary or fi ctitious values, or computed values not using the 
provisions of the Agreement.  The Government of Armenia recognized, however, that Decree No. 615 
lacks specificity in certain key areas, and was commit ted to remedying this situation.  In relation to 
further legislative approximation to Article 7 of the Customs Valuation Agreement, the representative of 
Armenia said that the Draft of Law on Customs Duties  submitted to the National Assembly incorporated 
a separate Chapter on Customs Valuation.  Accordin gly, Paragraph 6 of Article 12 of the Draft Law 
stipulated the following:  WT/ACC/SPEC/ARM/1/Rev.3 
Page 36  
 
 "In cases when  the customs value of goods imported to the Republic of Armenia cannot 
be determined in accordance with paragraphs 1-5 of the present Article, then the 
customs value should be determined by any other relevant method in accordance with 
provisions of the present Article, and on the basis of relevant info rmation available in 
the Republic of Armenia. No customs value shall be determined on the basis of :  
(a) the selling prices of domestically produ ced products in the Republic of Armenia;  
(b) [any system which provides for the accept ance for customs purposes of the higher 
of two alternative values  
(c) selling price of goods on the domestic market of the country of exportation;  
(d) the cost of production other than computa tion values determined for the identical 
or similar products, in accordance with the Paragraph  5 of the present Article;  
(e) prices of goods designated fo r importation to other countries;  
(f) minimal customs values;  
(g) arbitrary prices."  
 
The present list entirely conformed to the corresponding article of the Agreement. 
 
61. The representative of Armenia said that in relation to Article 8 of the Customs Valuation 
Agreement, paragraph 12 of Decree  No. 615 required that the transaction value applied for customs duty 
purposes should include all the additional costs referr ed to in Article 8.2 of the WTO Customs Valuation 
Agreement.  In response to questions concerni ng the rate of exchange 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 are published in the  press, as required by Article  9.1 of the Customs 
Valuation Agreement.  Confidentiality, w as assured by paragraph 5 of Decree No.  615.  In response to 
questions concerning the mechanisms for protection of confidential information, the representative of 
Armenia stated that paragraph 5 of Decree No. 615 provided that confidential information shall only 
be used for customs purposes and not divulged to thir d parties except by prior consent.  This met the 
obligation contained in Article  10 of the Customs Valuati on Agreement.   The representative of 
Armenia added that in relation to  Article 8 of the Customs Valuation Agreement, Paragraph 2 of 
Article 7 of the Draft  Law on Custom Duties provided for the following:  
Customs value includes:  
(a) contract price of goods acquired in the country of exportation.  
(b) freight expenses, including loading, unloading,  handling and insurance, incurred during the 
shipment of goods to the customs border of the Republic of Armenia   WT/ACC/SPEC/ARM/1/Rev.3 
 Page 37 
 
 
 (c) commission and mediation (broker commissi on) expenses incurred in the country of 
exportation or in connection with the shipme nt of goods to the customs border of the 
Republic of Armenia  
(d) value of the following goods or services, rendered  to the supplier by the importer, directly 
or indirectly, in full or partially, in conne ction with the manufacturing of the imported 
goods:  
(e) materials, components and other part s incorporated in imported goods;  
(f) tools and other similar items used in  the production of the imported goods;  
(g) materials consumed in the pr oduction of the imported goods;  
(h) engineering, development, design work and artwork, undertaken outside the Republic of 
Armenia, and necessary for the production of the imported goods;  
(i) royalties and license fees that the importer must pay, directly or indirectly, for selling 
imported goods.  
In response to questions concerning the rate of exch ange applied by the Customs, the representative of 
Armenia stated that the exchange rate used was de rived from the daily foreign exchange auctions held 
by the Central Bank of Armenia.  The Central Bank announced exchange ra tes daily and these rates 
are published in the press, as required by Article  9.1 of the Customs Valuation Agreement.  
Confidentiality, was assured by paragraph 5 of Decr ee No. 615.  In response to questions concerning 
the mechanisms for protection of confidential inform ation, the representative of Armenia stated that 
paragraph 5 of Decree No. 615 provided that confiden tial information shall only be used for customs 
purposes and not divulged to third parties except by prior consent.  This met the obligation contained 
in Article 10 of the Customs Valuation Agreement.  62. In response to requests for a detailed description of the  process for review of customs valuation 
decisions, the representative of Armenia said that in relation to Article 11 of the Customs Valuation 
Agreement, paragraph 9 of Decree  No. 615 provided for administrative appeal of a customs decision 
to a higher customs authority.  Legal persons (firm s or sole entrepreneurs) could make judicial 
appeals to a special arbitration authority in cases involving valuation decisions.  That arbitration was 
binding. The special arbitration authority was the same as the national courts.  Special economic 
courts will come into existence as the provisions of the new Con stitution are implemented  In cases 
involving any matter other than valuation, legal pers ons could appeal to the civil courts.  Natural 
persons could only make appeals to the civil courts.   The representative of Armenia added that the 
Paragraphs 2 and 3 of the Article 13 of the Dr aft Law on Customs Duties provided provisions for 
appeal procedures concerning the decisi ons and actions of Customs authorities.  
 WT/ACC/SPEC/ARM/1/Rev.3 
Page 38  
 
 63. The representative of Armenia said that as required by Article 12 of the Customs Valuation 
Agreement, relevant national laws, regulations, decisi ons and rulings were published in the Bulletin of 
Decrees of the Government of Armenia or in the Manual of the Supreme Council of the Republic of 
Armenia.  In relation to the obligation contained in  Article 13 (last sentence) of the Customs Valuation 
Agreement, when the customs value of goods can not be immediately dete rmined, importers were 
entitled to remove their goods from customs cont rol upon payment of provisional duties based on the 
assessment of the customs authorities .  The importer then had three mo nths in which to challenge the 
assessment.  Alternatively, an importer could provisionally clear goods  against a bank guarantee valid 
for one month.  If a valuation i ssue was not settled within one mont h, a further two-month period was 
provided for an importer to challe nge an assessment, against provis ional payment of the assessment 
made by the customs authorities.  The duty assessm ent, whether adjusted or not from the original 
assessment of the customs authorities, became final af ter the three-month period .  Paragraph 8 of Decree 
No. 615 provides that an importer is entitled, within se ven days of a written request, to receive a written 
explanation of a valuation decision of the customs authorities.  The interpretative notes of the WTO 
Agreement on Customs Valuation had not been sy stematically included in Decree No. 615. The 
representative of Armenia added th at in relation to Article 13 of Customs Valuation Agreement, 
Paragraph 11 of Article 12 of the Draft Law on Custom Duties provided for the following:  
In case when the customs bodies deemed  necessary a verification or further 
scrutiny of the customs value, declared  by the applicant in the corresponding 
declaration, importers were entitled to remove their goods from customs control 
against a bank guarantee valid for one mont h, in an amount equal to the disputed 
value, on condition of subsequent clearance in accordance with the final decision.  
 64. Following questions and comments from Working Party members reflecti ng concerns about the 
need for improvements to Decree No. 615, the representative of Armenia stated that Decree No. 615 
would be revised prior to  accession to address the concerns e xpressed by Working Party members and 
that the provisions of the WTO Agreement on the Implementation of Articl e VII of GATT 1994 would 
be adopted as an integral part of Armenia’s national la w upon Armenia’s accession.  All relevant laws 
would be in full conformity with the  requirement s of the Agreement on Implementation of Article VII 
of the GATT 1994 at the time of accession. In par ticular, the interpretative  notes of the Agreement 
would be fully incorporated in  Armenia’s customs valuation laws, and the Decision of 24 
September 1984 on the Valuation of Carrier Media Be aring Software for Data  Processing Equipment" 
would be adopted to ensure that valuation of soft ware was based on the value of the media.   The 
Working Party took note of these commitments.   WT/ACC/SPEC/ARM/1/Rev.3 
 Page 39 
 
 
 - Other customs formalities 
 - Rules of origin  65. The representative of Armenia stated that the rules of origin applied by Armenia followed the principles stated in the Agreement on Rules of Orig in. Origin rules were defined in terms of wholly 
originating products,  a change in the tariff classification of the good, processing criteria, and the value-
added criterion.  The choice of approach for de termining origin depended on the product concerned and 
any relevant international agreement in respect of whic h origin rules were being applied.  However, with 
the exception of wholly originating products, 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 the Resolution of the Govern ment 615, the country of 
origin was considered to be the country where the entire product has been manufactured or where it had 
undergone sufficient processing. The following goods we re considered to be entirely produced in a 
country: 
- minerals mined in the territory of a c ountry or inside its territorial waters; 
- plant produce grown or harvested in the territory of a country; 
- animals born or bred in the territory of a country; 
- products received from the animals born or  bred in the territory of a country; 
- product of hunting, fishing or sea opera tions in the territory of a country; 
- product of the high seas operati ons, that is produced in the hi gh seas by vessels belonging to 
the country or leased by it; 
- secondary raw materials or the waste resu lting from the production and other activities 
carried out in the territory of a country; 
- product of high technologies received in th e open space on spaceships belonging to the 
country or leased by it; 
- goods produced in the country in question, that have been exclusively produced in 
accordance with the points above. 
In case when two or more  countries have participated in the pr oduction of a product, the origin of the 
goods is determined based on the criter ia of sufficient processing. The fo llowing were the criteria for the 
sufficient processing of goods: 
- any alteration in the first four digits in the position of the classification of a product (the 
product description code) that has occurre d as a result of processing the product; 
- implementation of production or technological operations that were either sufficient or 
insufficient to consider the product as origin ating from the country where such operations 
have taken place; WT/ACC/SPEC/ARM/1/Rev.3 
Page 40  
 
 - ad valorem rule - the alteration in the value of  the product, when the proportion of the added 
value or the value of the materials used exceeded a certain measure of the price of the 
product 
Moreover, the following were considered as not mee ting the requirement of the criteria on sufficient 
processing: 
- operations geared towards the preservati on of the product during its storage or 
transportation; 
- operations of preparation of the goods for sale or transportation (taking apart, consolidation, 
sorting, repackaging of the products); 
- simple assembly operations; 
- merging, smelting of the parts (components) of products without lending them such features 
as would essentially differ from the initial components. 
The customs authorities were entitled  to require origin ce rtificates in respect of: (i) goods subject to 
quantitative limitation; the change in tariff;  (ii) im ports under preferential trading arrangements;  (iii) 
for the protection of the environment, public health  and safety and national security; and (iv) in 
situations where the authorities cons ider that inadequate information as  to origin has been supplied.  
Certificates of origin must be si gned by suppliers and verified by the relevant national certifying body. 
The evaluation with respect to the origin of imported goods was carried out by the ArmExpertise 
subsidiary of the Chamber of Commer ce of Armenia. In case of doubt as to the origin of goods imported 
into the Republic of Armenia the Customs referred to th e ArmExpertise, which examined the product, 
the waybills and the certificates of origin of the product and passes a decision on the origin of the 
product. At the same time, according to Point 2 of the directive No. 478MV of 26 April 1996 of the head 
of the Customs Directorate of the Republic of Armenia, in case of absence of the above mentioned certificate, the certificates issued SARM or by the ArmExpertise subsidiary of the Chamber of 
Commerce of Armeni a were accepted as documents confirming th e origin of the product. In accordance 
with the legislation of the Republic of Armenia curre ntly in effect, importers had the right to appeal 
controversial issues to a superior customs authority . The administrative and j udicial obligations with 
respect to this procedur e applied to all entities. 
 
66. The representative of Armenia stated
 added  that at present the Draft Law "On Rules of Origin" of 
the Republic of Armenia wh ich was being elaborated, would be in  full conformity with relevant WTO 
provisions.  In partic ular the precise definitions for goods fully  originated from the country’s natural 
recourses, tariff classification changes, added value principle, and sufficient recycling principle were 
given. Rules of origin, which were presented in the Draft Decree of the Government of Armenia, did not 
pursue, directly or indirectly, any trade objectives , were described in positive standards and did not  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 41 
 
 
 create obstacles for free trade, in accordance with WTO provisions.  The representative of Armenia 
added that  the Government of Armenia would bring all its laws and regulations into full conformity with 
the requirements of the Agreement on Rules of Or igin and would act in full conformity with the 
provisions of that Agreement from the date of its accession to WTO. The Working Party took note of 
this commitment.   
 - Pre-shipment inspection 
 
67. In response to questions, the re presentative of Armenia stated that Armenia did not at present 
employ the services of any pre- shipment inspection companies. 
 
68. The representative of Armenia stated that if any pre-shipment inspection system was 
introduced in the future it would be applied in conf ormity with the requirements of the Agreement on 
Pre-shipment Inspection. The Working Party took note of this commitment.  
- Anti-dumping, countervailin g and safeguards regimes 
 
69. In response to questions, the representative of Armenia stated that Armenia did not, at present, have an anti-dumping, co untervailing or safeguards regime . The representative of Armenia 
confirmed that, from the date of accession, Ar menia would not apply measures for safeguard, 
anti-dumping or countervailing duty purposes if conf orming legislation to apply such measures 
consistent with the provisions of the WTO Agre ement on Safeguards, Anti- dumping, and Subsidies 
and Countervailing Measures was not in effect in Armenia. The Working Party took note of this 
commitment. 
 
- Export regulations  - Export restrictions and export licensing system 
 
70. The representative of Armenia stated th at the Resolution No. 124, 29 December 1995 on Non-
Tariff Regulation of the Commodities  (Operations, Services) Import a nd Export in the Republic of 
Armenia regulated Arme nia’s export licensing regime. Export licenc es were required fo r textiles (to the 
European Communities only), for medicines, and fo r certain live animals and plants. The export licences 
on textiles were required pursuant to an agreement with the European Communities, but no restrictions 
on these exports were currently in place. The licences for medicines, live animals and plants
 anions 
and planets  were generally not restrictive - rather, they  were designed to ensure public health and WT/ACC/SPEC/ARM/1/Rev.3 
Page 42  
 
 safety. The exportation and importation of weap ons, military technique and the consumables 
necessary for its production, technologies equipmen t and locators of nuclear materials (including 
heating materials), special non-nuclear materials and services related to it, ionizing radiation sources 
were carried out through authorization issued by th e Government of the Republic of Armenia. All 
other products may be freely exported from Armenia.  The system applied to expor ts to all destinations, 
except in the case of the licensing requirement for exports of textiles and clothing to the European 
Communities  European Union .  The licensing requirements were not intended to restrict the quantity or 
value of exports.  Rather, they were intended to prot ect the national interest and human, animal or plant 
life or health, and the environment.  The representa tive of Armenia stated that  the Government did not 
consider that at this time, a better wa y existed of achieving these objectives.  
 
71. The representative of Armenia noted that Armeni a’s export licensing syst em closely paralleled 
the import licensing system. As on the import side, exportation of  pharmaceuticals and rare animals 
and plants were subject to non-restrictive licensing,  designed to protect health and the environment. 
Export licensing procedures for pharmaceutical products were the same as import licensing 
procedures, and were regulated by the same Resolu tions. In addition, exports of textiles and clothing 
to the European Communities were subject to licen sing under a bilateral agreement with the European 
Communities, and licences are also required for exports of rare objects or artifacts considered part of 
the national patrimony. The licensing of textile and clothing exports to the European Communities 
allowed these items to be monitored, but they are not currently subject to re strictions of any kind. 
 72. The representative of Armeni a said that Ar menia maintained export licensing requirements on 
the following items: 
 
 HS number 
Pharmaceutical products 05.10;  12.11; 13.02; 29.38; 29.41;  
Raw materials for pharmace utical production 30.00 
Textiles and clothing to European Union  
Objects considered part of the national patrimony  
Rare wild animals and plants included in the Red 
Book of the Republic of Armenia  
 
The Red Book of the Republic of Armenia identifies  approximately one hundred rare animals and birds, 
and 390 rare plants in respect of which licence s would be required and whose exportation may be 
controlled.   WT/ACC/SPEC/ARM/1/Rev.3 
 Page 43 
 
 
 73. The representative of Armenia stated that according to the Resolution No. 124, the exportation 
of pharmaceutical products and medicines  have  had to be authorized by the Ministry of Health of the 
Republic of Armenia. The  exportation  of rare wild  animals and plants included in the Red Book of the 
Republic of Armenia was ca rried out through authorization issued  by the Ministry of Nature and 
Environment. Exports of objects considered of intere st to the national patrimony must be authorized by 
the Ministry of Culture. In the case of textile and clothing exports to the European Communities 
European Communities, the Ministry of Industry and Trade had  would have  exclusive responsibility for 
issuing export licences.  Requests fo r authorization could be refused a nd issued authorizations could be 
suspended if (a) there was incorrect information in th e presented documents, (b) the period of validity of 
the pharmaceutical products was exceeded, (c ) the production serial numbers of imported 
pharmaceuticals did not correspond with the submitted quality ce rtificates, (d) the imported 
pharmaceuticals were not re gistered in Armeni a. The Ministry of Industry and Trade may 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 limitati on. Since this has not occurred so far, Armenia 
has not developed any mechanisms for administering export quotas. 
 
74. The representative of Armenia said that any pe rsons, firms and instituti ons wishing to apply for 
an export licence may do so provided they are registered as a juridical person or a sole entrepreneur undertaking a business activity in Ar menia. As in the case of th e importation of pharmaceutical 
products, to receive an authorization for expor tation of pharmaceutical products the following 
documents are
 were  required: an application form, a certificate relating to the acquisition of the 
pharmaceutical products, a licence to trade in pharmaceutical products in Armenia, documents 
relating to the acquisition and sale of pharmaceu tical products (contract, invoice, etc.), and  a 
certificate of quality issued by the producer. Authoriza tions are issued within 15 days from the date of 
the application. Since the fifteen-day stipulation is a maximum period, in practice licences may be 
obtained within a shorter period. An export licen ce will generally not be granted immediately upon 
request, but in practice the necessary procedures may be completed within a day or two. The fee for 
an export licence is equal to the month’s minimum salary in the republic of Armenia. Licences are not 
transferable among exporters.  A lice nce application and/or an export ation could be made at any time 
during the year. Authorizations are issued for the pe riod necessary to carry out the engagements, but no 
longer than one year. The validity of an authorizati on can be extended upon the substantiated request of 
an applicant.  The body issuing the authorization can suspend its validity  or cancel it. Unjustified delays 
and refusal to issue authorization, as well suspending and cancelling issued  certificates, can give rise to 
judicial procedures. 
 WT/ACC/SPEC/ARM/1/Rev.3 
Page 44  
 
 75. The representative of Armenia stated that any export licensing requirements or other export 
restrictions would applied be in  conformity with WTO requirements. The Working Party took note of 
this commitment.  
 - Other measures 
 
76. The representative of Armenia noted that in orde r to prevent exports at artificially low prices, 
or the under-invoicing of exports, the Resolution 124 established a list of minimum prices each quarter for a list of selected commodities as a reference base for tax purposes. With effect from 29 December 1995, this list only c overed ferrous and non-ferrous metals, (HS 72.00, 72.04, 74.0-74.14. 
75. 76.0-76.14, 78.80, 81.0, 81.13).  According to Re solution 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 ca lculated on the basis of 
these reference prices if the declared export pri ce is below the reference amount. In this case the 
exporter was required also to presen t the certificate of conformity of  the Agency of Standardization 
Measurement and Certification (SAR M). The Customs Bodies of the Republic of Armenia must inform 
the Tax Inspectorate about the transaction within a month. 
 
 - Export subsidies  77. The representative of Armenia stated that Armenia did not offe r any export incentives or export 
subsidies of any kind at the present time, nor di d Armenia have any duty drawback or temporary 
admission arrangements in respect of dutiable imports used in export production.  The Government 
believed that export expansion wa s vital to Armenia’s future econo mic viability.  For this reason, 
consideration was being given to various ways of st imulating exports, particularly through promotional 
activities.  The Government did not, however, intend to rely on export subsidies as part of an export 
expansion programme.  
78. The representative of Armenia confirmed that the Government did not maintain subsidies which 
met the definition of a prohibited subsidy, within the meaning of Article 3 of the Agreement on 
Subsidies and Countervailing Measur es, and did not seek transitions to provide for the progressive 
elimination of such measures within a fixed pe riod of time. The Working Party took note of this 
commitment. 
  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 45 
 
 
 - Internal policies affecting trade in goods  
 - Industrial policy, including subsidies  79. The representative of Armenia stated that Armenia’ s industrial policy aimed to ensure more 
efficient use of domestic resources within a mark et-oriented framework.  A central policy objective 
affecting industry was privatization.  Approximate ly 30 per cent of all en terprises in Armenia are 
publicly owned, while 70 per cent are non-public. He  stated that the Government estimated that 
approximately 95 per cent of industr ial output  emanated from the public  sector.  The representative of 
Armenia added that as a result of ongoing privatiz ation, as well as due to registration of newly 
established private enterprises, the share of publicly owned enterprises in Armeni a gradually declined to 
8 per cent of the total by the end of 1997, and to further 7 per cent by  the end of 1998.  Correspondingly, 
the public sector accounted for 57 per cent of indu strial output by the end of 1997, which declined 
further to 52 per cent of industrial output in the end of 1998.   In response to questions the representative 
of Armenia stated that pending completion of the privatization programme, the Government required 
State-owned enterprises to operate according to ma rket 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 developi ng them.  In response to requests for information 
concerning the payment of direct subsidies, the representative of Armenia stated that since the beginning of 1995, almost no direct subsidies had 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 su bsidies in the industrial sector, and no indirect 
subsidies were applie d on water and electricity supplie s in the agricultural after 1996
. 
 
80. 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 are to be 
granted for further construction and the equipping of plant.  The beneficiary firms do not export their 
products.  Any remaining indirect su bsidies that might arise as a resu lt of clearing arrangements were 
disappearing because of the contraction (and eventu al elimination) of in ter-government al clearing 
contracts.  Moreover,  The procurement via State orders, which coul d also entail indirect subsidies, was 
being replaced by competitive te ndering procedures, however, the G overnment maintained the freedom 
to grant certain privileges to do mestic bidders.  In 1998 the Govern ment recommenced the practice of 
write-offs of tax fine arrears in order to support the rehabilitation and restru cturing of a few selected 
large enterprises, such as Armenmotor Company and Yerevan Je wellery Plant.  For analogous purposes, 
tax fine arrears were written off for those enterpri ses which incurred indebtedness because of default 
against shipments being made wi thin the framework of inter-gove rnmental cleari ng contracts and 
procurements vi a State orders.  WT/ACC/SPEC/ARM/1/Rev.3 
Page 46  
 
  
81. The representative of Armeni a further added that because th e continuing reform of policies 
might indirectly confer subsidie s on industries, the Government al so maintained a substantially 
deregulated business environment which, when co mbined 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 measur es designed to 
safeguard and strengthen this business environmen t were the establishmen t of anti-monopoly and 
bankruptcy laws. The  Law on the Bankruptcy of Bank s  and the  Law on the Bankruptcy and Financial 
Recovery  of Juridical Persons, of En terprises Without the Status of  a Juridical Person, and of 
Entrepreneurs entered into forc e respectively on 1 October 1996 and on 1 March 1997. The relevant 
statutes were under preparation. 
 
82. The representative of Armenia stated that the Government of Armenia would ensure that its subsidy regime was in full conformity with th e Agreement on Subsidies and Countervailing Measures 
from the date of its accession to the WTO.  The Working Party took note of this commitment. 
 
- Technical Barriers to Trade/Sa nitary and Phytosanitary Measures 
 
83. The representative of Armenia noted that, after the declaration of independence, Armenia took 
steps to establish and develop its national systems of standardization, metr ology and certification. 
Relevant laws regulating those systems are the Law on Standardization and Certification and the Law on 
Uniformity of Measurements accepted by the National Assembly on 30 April 1997. The two laws 
incorporated the core principles of the WTO TBT Agreement. 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 system s. This would be mandatory for 
the bodies of State governan ce, as well as for enterprises, ins titutions and private entrepreneurs and 
would define the means for the protection of in terests of consumers a nd the State through the 
elaboration and application of nor mative documents on standardization.  It also defined the rights, 
obligations and responsibility of the participants in the certification process. The Law on Uniformity of 
Measurements defined the legal basis for ensuri ng the uniformity of meas urements, regulated the 
relations of the bodies of State gov ernance with enterprises, institu tions and private entrepreneurs 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 cons umers and the State from the 
negative impact of inaccurate results of measuremen ts. The Department for Standardization, Metrology 
and Certification (SARM) wa s denoted as coordinator of standardiz ation, metrological and certification  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 47 
 
 
 activities in Armenia, and its right s and obligations were defined by the Law on Standardization and 
Certification and the Law on Unifor mity of Measurements. Being the national body in charge of the 
administration related to standardization, certific ation and metrology in Arme nia its responsibilities 
included the creation and administration of nationa l standardization and certification systems; the 
adoption of national standards and classifications; the application of  international standards; the 
publication of official information in the fields of  standardization and certif ication; accreditation of 
certification bodies and te sting laboratories; dealing with appeals and disputes on cert ification matters, 
etc. SARM was in the structure of the Ministry of I ndustry and Trade.  SARM was  presided over by the 
State Chief Inspector, whose rights and obligatio ns were contained in Article 27 of the Law on 
Standardization and Certification a nd Article 24 of the Law on Uniform ity of Measurements. SARM is a 
collegial body that takes decisions by majority vote. 
 
84. The representative of Armenia added that the National Standardization System was established 
with a mission to provide: 
- the safety of the products, labour (processes ) and services for the natural environment, 
human life, health and property; 
- the technical and informative compatibility and interchangeability of products;  
- the conformity  improvement in quality  of the products, labour standards and services with 
the development level of science, technique and technology ; 
- uniformity of measurements; 
- preserving of all types of resources; 
- the security of economic objects, in the event of occurrence of technical and other disasters 
and emergencies; 
- the necessary conditions to ensure the  defense of the country and the readiness for 
mobilization. 
The main provisions of that system  and its procedures for preparati on, adoption  and application of 
Armenian standards were establis hed by national basic standards of  AST 1 series. About 210 Armenian 
standards had been developed by the technical committees and adopt ed by SARM since 1993. The great 
part of the standards applied in Armenia were international and regi onal standards. More than 18,000 
interstate standards of CIS countries were included  in the national fund of standards. 860 international 
standards have been accepted in Armenia at present and 30 per cent of national standards would be 
aligned to international standards by 2000. For the pr eparation, adoption and ap plication of standards, 
SARM followed the TBT Code of Standards Good Prac tice and will sign it from the date of Armenia’s 
accession to WTO. SARM was cooperating with sta ndards organizations in ot her countries and is a 
member of the International Orga nization for Standardization from 1 January 1997. Presently SARM is WT/ACC/SPEC/ARM/1/Rev.3 
Page 48  
 
 member of ISO, CAC, 
EASC, which enables Armenia to particip ate through technical committees in the 
elaboration of international and re gional standards and to apply thes e standards in Ar menia. The only 
enquiry point operating in Armenia and the only body responsible for notific ations was SARM, which 
would implement the obligations established in accordance with Articled 10 of the TBT Agreement. Besides the publication of a monthly journal (Hayas t), which provides current  information on issues 
relating to standards and certifications. SARM used the INTERNET communication system for 
notification. A new resolution of the Government was being prepared for the cl arification of rights and 
responsibilities of SARM as an e nquiry point, and those of the WTO Af fairs Department in the Ministry 
of Industry and Trade as a notification . 
 85. The representative of Armenia further adde d that the National Certification System was 
established according to the Law on Standardization and Certification taking into consideration the 
international experience in the field of certification,  particularly ISO/IEC Guides 7, 22, 23, 25, 27, 28, 
58, 60, 65  and European standards of EN 45000 series . The objectives of certif ication were as follows: 
- creation of conditions for activit ies of the economic entities in the internal market of the 
Republic of Armenia, as well as in the in ternational economic, scientific- technical 
cooperation and international trade; 
- support of consumers in right selection of products, labour, services  and in access of 
objective information about them; 
- control over the safety of produc ts, labour, services for the na tural environment, the human 
life, health and property; 
- conformation of the product, labour , services with the quality ch aracteristics cl aimed by the 
producer; 
- protection of consumers’ rights. 
The accreditation of certificati on bodies and testing laboratories in  Armenia were operated by SARM. 
The provisions on national certification system, th e criteria and procedures for accreditation and 
certification were es tablished by national standards of AST 5 series. About a dozen certification bodies 
and a hundred testing laboratories were accredited. The accredited ce rtification bodies  were operating 
product certification national program me that had its own certificate and mark of conformity, product 
certification procedure, register of certificates and procedure for dealing with appeals that were 
established by Armenian standards. The conformity assessment procedures applied in Armenia corresponded to international cr iteria and TBT Articles 5-9. 
 
86. In response to questions concerning to mandato ry certification, the representative of Armenia 
stated that Armeni a applied manufacturer’s de claration supported by pos t-market surveillance  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 49 
 
 
 procedures, as well as inte rnationally accepted pre-ma rket certification, which concerned to the products 
subject to mandatory certification. Both certif ication mechanisms were fixed in the Law on 
Standardization and Certification.  Mandatory certification activitie s were coordinated by SARM and 
conducted by certification bodies an d testing laboratories accredited by it according to the Law on 
Standardization and Certification and regulated by Resolutions 417, 205, 136, which proceeded from the 
law and introduced the list of pr oducts subject to mandatory certific ation in the Republic of Armenia 
taking into consideration the necessity of the contro l over the safety of products , labour, services for the 
natural environment, the human life, health and property, as well as th e protection of consumers’ rights. 
Presently this is the full list of  products subject to  pre-market certification. These products we re selected 
taking into consideration the reports received from th e inspection bodies, the toxins received from the 
Ministry of Agriculture, Sanitary-Anti-epidemiological State Centre, from media, consumers and data 
from Statistics Department. The drafts of these Resolutions were submitted for discussion and 
comments to the relevant ministries, major enterprises and traders, other institutions that displayed  an 
interest in it. Requirements for products covered by mandatory certification in Armenia were kept to a 
minimum.  The standards of the products included in the list of Resolution 205 were voluntary.   They 
were established in accor dance with the technical regulations, a dopted by SARM in coordination with 
the interested ministries and departments, according to Reso lution No.15 of the Government.   
Compulsory were only the requirements concerning  to safety, health and the protection of the 
environment. Mandatory certification procedures app lied were the same for bo th imported and domestic 
products. Certificates were issued for product types or batches based on testing of samples, analysis of 
production system, quality system cert ification or declaration of supp lier depending on the scheme of 
certification.  Only  These  internationally accepted certification sc hemes were fixed by AST 5.3.  The 
procedures of mandatory certific ation were established with refe rence to the AST 5.1 standards, 
application of which became mandatory, accordi ng to the Resolution No. 15 of the Government.   Unlike 
to most of CIS countries, certific ation activities in Armenia due to  the Law on Standardization and 
Certification were regulated by the only authorized body - SARM, so  avoiding overlap of requirements 
set by different regulatory bodies. SARM had signed coopera tion agreements on mutual recognition of 
conformity assessment wi th appropriate bodies of several countries such as Russian Federation, 
Ukraine, Belarus, Georgia, Turkmenistan, Kazaks tan, Moldova, Kyrgyz Republic, Tadjikistan, 
Uzbekistan, Slovak Republic, China  and Iran.  These were Agreem ents on Mutual Recognition of 
Conformity Assessment Re sults.  SARM was carryin g out negotiations with a ppropriate bodies of other 
countries, particularly with Bulgaria, China,  India,  Romania and the United States, to sign similar 
agreements on cooperation. 
 WT/ACC/SPEC/ARM/1/Rev.3 
Page 50  
 
 87. The representative of Armenia added that SARM  cooperated with the Ministries of Health and 
Agriculture in matters relating to sanitary and phyto sanitary measures. Having the objective to protect 
human health, safety and environment, the Govern ment of Armenia had introduced the list of goods, 
some of which fall in the scope of SPS Agreement, subject to mandatory certification (Resolution 417 
of  6 September 1994, and its amendments Resoluti ons 205 of 5 July 1996 and 136 of 17 May 1997   
15 of 16 June 1998 ) which was evidence for the fact that Armenia had started the 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, econo mic and organisation princi ples of State Agrarian 
Inspections in the Republic of Armenia. Articles 6 an d 7 of the Law, particular ly outlined the activities 
of the State Inspection for Agriculture, concerning cu ltivation of lands, use of fertilizers, the struggle 
against plant diseases, insects and weeds, transpor tation of toxic substances  and mineral fertilizers, 
conditions of conservation and annihilation, as well as livestock breeding with respect to veterinary 
services.  Resolution No.17 of the Government (11 March, 1998) the "National Agrarian Rules" were 
established.   The latter dealt with the protection of  population from diseases common to man and 
animals, the prevention and eradication of co ntagious and non-contagious animal diseases, 
transportation, conservation, use and annihilation of veterinary medicaments and disinfectants.  For the 
implementation of the Law on State Agrarian Inspections, draft laws on Phytoprotection and Veterinary 
Medicine  a draft Law on Plant Protection and Plant Quarantine , as well as  the Draft Law on  
Veterinary Medicine  had been worked out. The Law on Phytoprotection  Plant Protection and Plant 
Quarantine  defined the legal, economic and organisa tion principles of the State Service of 
Phytoprotection  Services of Plant Protection and Plant Quarantine  of the Republic of Armenia, and 
regulated relations between farms, en terprises, organizations and indivi duals within the territory of the 
Republic of Armenia. The Law on Veterinary Medici ne defined the legal, economic and organisation 
principles of the State Service of Veterinary Me dicine of the Republic of Armenia, fixed the 
regulation for the prevention of diseases of animal s, for the protection of population from diseases 
common to man and animals, and for providing the population with quality products according to 
veterinary and sanitary conditions. The law regulated relations between the State body in charge of 
veterinary medicine and enterprises, organizations, entrepreneurs, and individuals on the territory of the 
Republic of Armenia.  The Draft Law on Veterina ry Medicine had been submitted to the National  
Assembly for approval.  
 88. The representative of Armenia stated that all relevant laws relating to Technical Barriers to Trade and Sanitary and Phytosanitar y Measures would be br ought into conformity with the requirements 
of the Agreements on Technical Barriers to Trade an d Sanitary and Phytosanitary Measures by the date  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 51 
 
 
 of Armenia's accession to the WTO without recourse to any transiti on period.  The Working Party took 
note of these commitments. 
 
- Trade-Related Investment Measures (TRIMs) 
 
89. 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 therefore not seek a 
transition for the progressive elimination of such m easures within a fixed period of time.  The Working 
Party took note of this commitment. 
 
- State Trading Enterprises  90. In response to questions the representativ e of Armenia stated that the State monopoly over 
foreign trade of the Former Soviet Union was abol ished in 1989, and was repl aced by a registration 
requirement for the conduct of such activity.  By  a decree of the Presid ent of the Republic of 
4 January 1992 entitled On Foreign Ec onomic Activity, all enterprises registered and operating in the 
territory of Armenia, regardless of their form of ownership, had the right to conduct foreign economic 
activity, and are not subject to any additional registration requirements.  
91. Some members of the Working Party noted that  certain telecoms enterprises were engaged in 
State-trading pursuant to Article XVII of the GATT 1994.  In resp onse to requests for information on 
enterprises engaged in State trading in the Republic of Armenia, 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 Trad e 1994, Armenia maintained two
 one State trading enterprises  in the 
telecommunications sector. Basic international  telecommunication services, and wire -based and cellular  
 mobile and international data  transmission and value-added  services in Yerevan  have been reserved to 
Armentel, a joint venture between the  a joint-stock company owned by  the Government of Armenia and 
a foreign private supplier, in exchange for co mmitments by Ar mentel to develop Armenia’s 
telecommunications infrastructure.  
 92. The representative of Armeni a stated however that  Resolution 161 of March 1991, as amended 
by Resolution 415 of June 1995, reserved certain activ ities exclusively to the State and required that 
certain other activities were  licensed by the authorities.  List 1 attached to Resolution 161 identified 
eight types of activities that were reserved exclusively for the State.  These were: (i) the sale and 
purchase of weapons, arma ments, narcotics, explosives, radi oactive materials and other strong WT/ACC/SPEC/ARM/1/Rev.3 
Page 52  
 
 substances; (ii) the production and re pair of weapons, arma ments and explosives; (i ii) the preparation of 
drugs, narcotics, poisonous and strongly acting substances; (vii) the issuing of money and preparation of 
State medals; and storage, preservation and utilization of gold and other precious metals and substances 
of military significance.  All these reserved activities involved the Stat e in the exercise of its unique 
responsibilities, including the preservation of national se curity, public order, and the health and safety of 
the population.  List 2 of Resolution 415 indicated those activities that required prior authorization and 
the body responsible for providing the authorization.   As with the items on  List 1, few involved 
manufacturing activity.  All the item s on list 2 were controlled for si milar reasons to those items in 
List 1.   Licensing of economic activities include d under List 2 is non-restrictive in the sense that 
licensing decisions are not motivated by trade protecti on considerations.  In resp onse to questions from 
Working Party members, the representative of Armeni a stated that the coverage of these reservation 
powers was under review.  No State monopoly existed in respect of the product ion of pharmaceuticals.  
However, both State and private enterprises required licences from the Ministry of Health in order to produce pharmaceuticals.  
93. In response to questions whether Armenia inte nded to report its State monopoly of natural gas 
distribution under Article XVII, the representative of Armenia replied that Armg as had not been granted 
exclusive or special rights or privileges in the market for natural gas distribution.  Armgas was 
State-owned and the Government had determined that this enterprise would be the only State-owned 
enterprise to distribute gas.  But this does not prevent any other entity  with majority private ownership 
from purchasing gas or from involvement in gas distribution.  In light of this situa tion, the Government 
of Armenia did not believe it was require d to notify Armgas under Article XVII. 
 94. The representative of Armenia said that no Stat e or private enterprises operating in Armenia had 
exclusive or special rights or privil eges granted by the Government of  Armenia to conduct international 
trade in goods or services except  those mentioned in paragraph 91
 92. However, he noted that a 
low-interest loan had been granted to the State en terprise Hayhatsahatik (A rmCereal) in February 1996 
to acquire and stockpile wheat from the European Communities  European Union  Counterpart joint 
assistance wheat fund. 
 95. The representative of Armeni a confirmed that his Governme nt would apply its laws and 
regulations governing the trading ac tivities of State-owned enterprises and other enterprises with special 
or exclusive privileges and would otherwise act in  full conformity with the provisions of the WTO 
Agreements, in particular  Article XVII of the GATT 1994 and the Understanding on that Article; and 
Article VIII of the GATS.  The Working Party took note of these commitments.  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 53 
 
 
 - Free zones, special economic zones 
 
96. The representative of Armenia stated that Ar menia did not maintain any free trade zones in 
which special duty privileges of any kind were grante d.  Armenia had, however , established a Frontier 
Trade Area in the Meghri Region, on the border with Iran.  The zone was established to promote trade 
between Armenia and Iran.  Under 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 entitl ed to enter each other’s zones in order to explore 
business and trading opportunities, but no special cu stoms regime or privileged duty treatment was 
associated with any exchanges agreed on the basis of these contacts. 
 - Government procurement 
 
97. The representative of Armeni a informed the Working Party that government procurement in 
Armenia was governed by Governme nt Resolution number 67 if 8 February 1995 "On the State 
Procurement Order of the Republic of Armenia".  Purs uant 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 behalf.  Under the new appr oach to procurement introduced in that Resolution, 
no procurement entity, either State-owned or private, enjoyed special rights or privileges.  All interested 
parties could participate in proc urement activities under the common rules.  These purchases, which 
were given effect through  State Orders, were fina nced directly from th e 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).  In the past, these ar rangements had sometimes in volved implicit subsidy 
elements for the suppliers concerned, since prices  under State Orders had not  necessarily corresponded 
to market prices.  As markets developed, howe ver, and more competition occurred, both among 
Armenian enterprises and with imports, subsidized procurement was becoming a less frequent 
occurrence.  
98. The representative of Armenia said that with effect from 1995,  State Orders in excess of 
US$50,000 for items including:  electric energy, va rious health services training and education, 
geological exploration, television broadcasting, water suppl ies and sewerage were subject to competitive 
tender.  In response to questions, the representativ e of Armenia stated that  tender announcements are 
made in official periodicals of th e Government of  Armenia.  The main criteria for selecting bids 
included the prices, the quality of the products or services offered, operationa l, technical and service 
characteristics, national security  requirements, terms and conditi ons of payment, and terms and WT/ACC/SPEC/ARM/1/Rev.3 
Page 54  
 
 conditions of delivery.  Foreign enterprises receive d equal treatment to Armenian enterprises.  The 
tenders were administered by the Ministries and Depa rtments concerned, or by their representatives. The 
representative of Armenia informed the Worki ng Party that currently the Law on Government 
Procurement was under preparation in the Ministry of Finance and Economy (recently formed upon the 
structural changes of the Governme nt of Armenia). Pursuant to th is Law, a governmental authority 
regulating the field and supervising all kinds of St ate procurements would be  established. Stringent 
criteria would be set governing qua lification, tendering, bidding, ev aluation, performance and appeal 
procedures. The provisions of the Law on Governme nt Procurement of the Republic of Armenia would 
be in conformity with the WTO Agreement on Gove rnment Procurement, in particular the national 
treatment and non-discrimination prin ciples would be guara nteed consistent with  Article III of the 
Agreement on Government Procurement. The adoption of the Law was projected prior to the date of 
Armenia’s accession to the WTO. 
 99. In response to questions from members of the Working Party, the re presentative 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.  The Working Party took note of these commitment
s this commitment . 
 
- Transit 
 
100. The representative of Armenia stated that Ar menia permitted the unimped ed and tax-free transit 
of goods through its territory, with the exception of those goods whose importation is prohibited, i.e. 
weapons, components used in the production of we apons, explosives, nuclear materials, poisons, 
narcotics, strong psychotropic subs tances, devices for use in opium smoking, and pornographic material.  
These items would only be able to  transit Armenian territory with the explicit consent of the 
Government of Armenia.  Transi t goods remain under customs supervis ion while they are on Armenian 
territory.  Armenia was party to a plurilateral agreem ent on transit trade within the framework of the CIS 
Treaty on Economic Union.  This agreement provided that signatories should not tax or impede transit 
trade through their territories.  Armenia had also signed a bilatera l agreement on this subject with 
Georgia.  Similar agreements with Iran and the Ukraine were under consideration. 
  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 55 
 
 
 - Agricultural policy 
 
101. The representative of Armenia said that as in the case of industry, the Government of Armenia 
does not maintain State planning of any kind in the agricultural sector.  The past practice of supplying 
concessionary credit s has been discontinued.   The Government provided  indirect subsidies, such as:  
charging only variable costs on water and electricity supplies from farmers; pr ovision of low-interest 
loans to consumers of agricultural water for the re demption of their debts to the energy suppliers;  
provision of short-term low- interest project loans to farmers thr ough the Agricultural Cooperative Bank;  
provision of cereal seeds through "seed-loans";  and granting tax exemptions for producers of basic 
agricultural products, were the  as a  main means of support provided by the Government  to the 
agricultural sector. The support provided to agricu ltural producers was aime d to assist farmers to 
overcome structural and operationa l difficulties during the transition toward the market oriented 
economy. In contrast to the slow pace in industry, Arme nia has privatized almo st 90 per cent of 
agricultural land, and made land titles freely tran sferable. Agricultural s upport tables were being 
prepared using the 1994 -1996  1995-1997  period as the base period for th e calculations of the aggregate 
measurement of support wh ich would be used to specify Arme nia’s domestic support commitments. 
 102. The representative of Armenia added that as far as inputs were conc erned, two large State 
enterprises,  Hayagrospasarkum  (Armagroservice) and  Hayberriutyun  (ArmPr osperity) 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 auth orized by the Ministry of Agriculture (holding). 
Despite the fact that the competition remained somewhat limited  constrained  in both  the input and output  
markets , there was nothing  were no restrictions  to stop other suppliers from entering the market  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  these enterprises had no exclusive or special rights 
or privileges granted by the Government of Armenia in the field in which they operated. 
 
103. The representative of Armenia said that the Government of Ar menia does not consider direct 
subsidies as a part of the development programme of the agricultural sector.  Indirectly, however, 
farmers have benefited from the Government’s poli cy of charging only variable costs on water and 
electricity supplies, from the provi sion of low-interest loans to consumers of agricultural water for the 
redemption of their debts to the energy suppliers;  short-term low-interest project loans to farmers 
through the Agricultural Cooperative Bank;  "seed-loans";  and from the granting of tax exemptions for WT/ACC/SPEC/ARM/1/Rev.3 
Page 56  
 
 producers of basic agri cultural products. Variable  cost pricing policies have applied to all users of 
electricity and water.  However, full cost pricing (cos t recovery pricing) was introduced for electricity in 
1995, and for water during the course of 1996.  Since then, no direct or indirect subsidies are provided 
to the agricultural sector.  The value of the indir ect water and electricity subsidies to farmers has  not 
been calculated by the authorities .  In addition, the Government supported a range of activities 
dedicated to reparation of irri gation network, to restructurin g of financial and communication 
infrastructure, 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. 
These measures fit with the  green box  of domestic support tables as far as the provided services were 
available to all farmers an d involved budgetary outlays. 
 
104. The representative of Armenia stated that the Government of Armenia paid no export subsidies 
on exports of agricultural products.  Accordingly th e Government of Armenia would bind its agricultural 
export subsidies at zero level in the relevant part  of the Schedule of Concessions on Goods.  The 
Working Party took note of this commitment. 
 
V. Trade Related Intellectual Property Rights (TRIPS) 
 
105. The representative of Armenia st ated that the first st ep in the direction of intellectual property 
protection was the establis hment 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, to 
register utility models and industrial designs. During 1 993-96, the Armenian Patent Office received 695  
applications for inventions from local  Armenians and 364 applications fr om foreigners. An applicant not 
a national of Armenia and not domici led in Armenia must c onduct his affairs through a patent attorney 
registered with the Armenian Patent Office.  
Industrial property protection 
 
106. In response to requests for information c oncerning the intellectual property policy of the 
Government of Armenia, the repr esentative of Armenia stated that the Government of Armenia was 
currently engaged in a substantial programme of le gislative reform. During 1993- 4, the Armenian Patent 
Office received some 3,000 applica tions for trade marks, service mark s and appellations of origin. By 
1 December 1998 the Armenian Patent  Office had received about 1,300 appl ications for inventions - of 
which 850 were submitted by local Armenians a nd 450 by foreigners, and approximately 5,500 
applications for trademarks accor ding to National Procedure - of  which 4,874 applications were  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 57 
 
 
 submitted by foreigners and 626 by local Armenians .  But  However,   the reception of these applications 
for registration began after the issue of Resoluti on No. 4 of 19 August, 1995, "On Confirmation of the 
Temporary Regulations for Trademar ks and Service Marks" and Patent  Office Order of 24 October 
1995, "On re-registration of former Soviet Union valid certificates fo r trade and service marks". In May 
1997, the Armenian National Assembly  adopted the Law on Protection of Trade and Service Marks and  
Appellations of Origin, and the Law on Protection of Trade Names. The provisions of the adopted 
statutes were fully consistent with international norms  in this area. A distinctive feature of the first of 
these Laws was the legal equality establishe d between trademarks and service marks. 
 
- Responsible agencies for policy formulation and implementation 
 
107. The representative of Armeni a said that since September 1997,  policy formulation in the field of 
intellectual property including industrial property and copyright  industrial property  was the 
responsibility of the Patent  Office of the Republic of  Armenia, and policy formulation in the field of 
copyrights was the responsibility of the  Ministry of Industry and Trade through the Armenian National 
Copyright Agency  within its system .  The policy implementation in the area of industrial property 
(patents, utility models, industrial designs, trademarks trade names  and service marks, trade names, 
layout designs of integrated circuits  and appellations of origin) was the responsibility of the Armenian 
Patent Office. The Pa tent Office was responsible  for approving industrial property right applications, 
maintaining the State Register of industrial property rights, issuing an official bulletin reflecting its 
decisions, and cooperating with foreign institutions and internatio nal organizations. The Patent Office 
was also responsible for the regime covering trademarks. 
 
- Participation in international in tellectual property agreements 
 108. The representative of Armeni a stated that on 22 April 1993, Armenia deposited a declaration of 
continued application of the Convention Establishing  became a Member of  the World Intellectual 
Property Organization (WIPO).  On 17 May 1994, Arme nia also deposited a de claration of continued 
application of the Paris Convention for the Protec tion of Industrial Property, Madrid Agreement 
Concerning the International Registration of  Marks and the Patent Cooperation Treaty. 
 
- Application of national and MFN treatment to foreign nationals 
 
109. Some members of the  Working Party noted that although the represen tative of Armenia had 
stated that foreigners enjoy national treatment in both civil and criminal procedures before the courts, its WT/ACC/SPEC/ARM/1/Rev.3 
Page 58  
 
 replies to questions concerning admi nistrative review proceedings, dea ling with the powers of judicial 
branches of government, suggested that the jurisd iction of economic courts  was not available to 
foreigners from outside the CIS.  The representative of Armenia stated that all c itizens enjoy equal rights 
under the law, for example, the Law on Patents provided that all foreig ners enjoyed the same rights as 
nationals of Armenia in relation to all patent matter s, including protection of patents and legal remedies 
against infringement. The above mentioned Law on Protection of Trade and Service Marks and 
Appellations of Origin, and the Law on Protection of  Trade Names similarly e nvisaged full national and 
MFN treatment for foreigners. This was also the case  in respect to the Law on Copyright, and any future 
laws and regulations adopted in the sphe re of intellectual property protection. 
 
- Fees and taxes  110. The representative of Armenia stated that fees were payable upon  filing of an application and 
granting of a patent. Similar arra ngements were in place for trademarks and service marks and 
copyright. All fees were set so as to  be limited in amount to the appr oximate cost of services rendered, 
and the granting and protection of intellectual property rights is
 was not subject to taxation, as any fee is 
collected on behalf of the budget.  The fees for legal protection of I ndustrial property, established by 
the Law on State Fees of the Republic of Armenia,  were identical for resident Armenians and non-
residents.  
 - Substantive standards of pr otection, including procedu res for the acquisition and 
maintenance of intellectual property rights 
 - Copyright protection 
 
111. The representative of Armenia stated that the National Copyri ght Agency was established in 
1993. More than 2,000 authors theatre and concert organizations are registered with the agency under 
the legislation of former Soviet Union  and their artworks  were registered with the Agency.  As was 
mentioned above, intellectual pr operty policy formulation, including industrial property and 
copyright, was the responsibility of the Ministry of Industry and Trade.   I n  t h e  f r a m e w o r k  o f  i t s  
activities the Agency also registered those organizatio ns which made use of artw orks, such as theatres, 
concert organizations, or organiza tions using works of arts and crafts for industrial purposes.   Copyright 
policy implementation was the responsibility of th e National Copyright Agency, which registered 
copyrights, assisted indivi duals to secure copyrights, provided advi sory services, and collected and paid 
royalties due to authors and their successors in title. 
  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 59 
 
 
 112. The representative of Armenia added that  a draft Law on Copyright had been prepared in the 
early 1990's and was submitted to t he National Assembly for its consideration  in accordance with the 
Law on Copyright and Neighbouring Rights, which was adopted by the National Assembly in 
May 1996, the National Copyright Agency provided pr otection for copyrights in the territory of the 
Republic of Armenia .  After examination of the proposed legislation, however, it was felt that its 
provisions were inadequate for a modern system of  copyright  protection.  The new version of the 
Law on Copyright had been therefore submitted for consideration  and was adopted in May 1996.  
This Law on Copyright had been elaborated in acco rdance with the provisions of the Bern Convention 
on this subject.   This  The present  Law on Copyright and Neighbouring Rights  had been elaborated in 
accordance with the provisions of the Bern Convention on this subject  Protection of Works of Art and 
Literature.   It provides d protection for the property rights of computer programs and compilations of 
data, as well as for the neighbouring rights, i.e., the rights of phonogram and videogram producers and 
broadcasting and televi sion stations.   
 
 - Trademarks, including service marks  113. The representative of Armenia informed the Working Party that in May 1997, the Armenian 
National Assembly adopted the Law on Protection of  Trade and Service Marks and Appellations of 
Origin and the Law on Protection of Trade Names. As mentioned earlier, a distinctive feature of the first 
of these Laws was the legal equal ity established between trademarks and service marks. The Law set out 
the terms and conditions of trademark protection, the ki nds of 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 require ments for registering a 
trademark. Trademark protection is
 was  granted for 10 years, renewable for successive periods of 10 
years. The provisions of the Law were in full co nformity with Articles 15,16.1 and 17–21 of the TRIPS 
Agreement. As regards the provisions of   Arti cle 16.2 and 16.3 of the TR IPS Agreement concerning 
established trade and service marks, these were also taken into account in the adopted Law on Protection of Trade and Service Marks and Appellations of Or igin (unlike the  former Resolution No. 4 of 
19 August, 1995), and they would be deta iled in further elaborated regulations. 
 114. The representative of Armenia stated that the abov e-mentioned Law on Protection of Trade and 
Service Marks and Appellations of Origin and the Law on Protection of Trade Names came into force in 
September
 July  1997. 
 WT/ACC/SPEC/ARM/1/Rev.3 
Page 60  
 
  - Geographical indications, incl uding appellations of origin 
 
115. Some members of the Working Party as ked how Armenia would protect geographical 
indications under the Law on Protection of Trade an d Service Marks and Appellations of Origin, and 
whether that legislation would be in conformity with Articles 22 to 24 of the TRIPS Agreement. The 
representative of Armenia stated that geographical indications were not explicitly mentioned in 
Resolution No 4 of 19 August, 1995, so the protection  for this kind of property would not be provided 
until the Law on Protection of Trade and Service Ma rks and Appellations of Origin became operative. 
The representative of Armenia stated that the provisions of this adopted Law were in conformity with Articles 22 to 24 of the TRIPS Agreement. The re levant provisions in the mentioned Law had been 
developed in compliance with the provisions of th e Paris Convention (Articles 1(2), 10, 10ter, 10bis, 
6quinquies B.3), the Madrid Agreemen t on the Repression of False or De ceptive Indications of Source 
on Goods (Articles 1(1), 1(2)), and the Lisbon Agreem ent for the Protection of Appellations of Origin 
and their International Registrati on (Articles 2(1), 2(2), 3, 6). 
  - Industrial designs 
 
116. The representative of Armenia stated that indu strial designs were prot ected under Article 7 of
 
by the Law on Patents.  This Article  In particular, the Article 7  of the Law, which established the 
necessary conditions for patent ability of industrial designs,  was consistent with Articles 25 and 26 of the 
TRIPS Agreement.  In response to requests for inform ation concerning the specific protection for textile 
designs provided for in Article 25(2) of the TRIPS Agr eement, the representative of Armenia stated that 
although textile designs were not ex plicitly mentioned in Article 7  8 of the Law on Patents, they were 
nevertheless covered under that provision. There was al so a similar reference in Article 2.  ("The Types 
of Industrial Design") and Article 5 (d) ("The Compos ition of Application") of The Rules of Preparation 
and Filing the Application of Industrial Design ", adopted by Armenian Patent Office on 
10 February 1994. 
  - Patents 
 
117. The representative of Armenia stated that the Law on Patents was adopted in August 1993. 
Under the law, patents are granted for inventions, utility models and industrial designs. The term of 
patent protection 
is 20 years for inventions, 10 years for utility mo dels, and 15 years for industrial 
designs  was 5 years for inventions (temporary pate nt, which was granted on a basis of limited 
examination of the invention), and 20 years, when th e patent was granted on a basis of comprehensive  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 61 
 
 
 examination .  These periods were counted from the date of filing and as far as pate nts granted on a basis 
of comprehensive examination were concerned, the Law provided for a three-year period of deferred 
examination after the date of initial filing .  Patents were gran ted subject to requirements that the object 
of the patent is new, involves an inventive step a nd is capable of industrial application, and that no 
conflict arose with respect to public order and secu rity, good morals and law. Where a patentee fails to 
exploit the patented object within four years from the da te the patent was secured,  any party interested in 
the use of the invention, utility model or industria l design may request that a compulsory licence be 
issued. As far as patents for inve ntions were concerned, the Law pr ovides for the so-called "deferred 
examination" for a three-year period. A full examinati on of a patent application was carried out as a rule 
only upon request and payment of a fee by the applicant or any other interested party. Some members of 
the Working Party asked whether Arme nia’s Law on Patents was in full conformity with Articles 27 to 
34 of the TRIPS Agreement, and re quested further information on the conformity of Ar menia’s system 
of compulsory licensing.   118. The representative of Armeni a stated that the Law on Pate nts was in conformity with 
Articles 27 to 34 of the TRIPS Agreement, and amen dments concerning compulsory licensing would be 
made to the Law on Patents by the date of accession
 from the date of Armenia's accession to the WTO .  
The Working Party took note of this commitment.  
119. The representative of Armenia sa id that the owner of a security deed (patent or certificate) for 
invention or industrial design granted by th e Patent Office of the Soviet Union and
, which was  still in 
force, could file with the Armenian Patent Office fo r an Armenian patent at any time during the validity 
period of the exclusive rights (2 0 years after the initial filing) . Further, an applicant who had filed an 
application before 8 Decem ber 1992, to obtain a security deed on an invention or an industrial design 
with the intention of obtaining protection also in Arme nia, and if the applicati on was still pending with 
the Patent Office of the Russian Federation, had a ri ght, before 30 December 1995  1996 , to file a request 
with the Armenian Patent Office that the application be further processed under Armenian legislation. In the ten-year period to 1990, residents of Armenia regi stered 6,000 inventions w ith the Patent Office of 
the Soviet Union. The Law on Patents specified the nature of patentable ma terial, the conditions for 
patentability, the rights of patent holders, the conditions of compulsory  licensing, the procedures for 
granting patents, and dispute settlement. WT/ACC/SPEC/ARM/1/Rev.3 
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 - Plant variety protection  120. The representative of Armenia stated that Armenia currently has no laws dealing with plant 
variety protection. In response, some members of the Working Part y asked how it was proposed plant 
varieties would be protected in the future. The representative of Armenia stated that legislation to cover 
the protection of plant varieties is
 was being drafted and would be submitted to the National Assembly 
for approval . It was intended that this legislation would enter into force by  from  the date of Armenia’s  
accession to the WTO . The Working Party took note of this commitment. 
 
 - Layout designs of integrated circuits  121. In response to questions conc erning the system for protection of  layout designs of integrated 
circuits, the representative of Armenia stated that Armenia did not yet have legislative protection for 
this kind of intellectual property.  It was intended that  legislation to cover layout designs of integrated 
circuits would enter into force by the date of accession  the Law on Protection of Layout Designs of 
Integrated Circuits which had been adopted on 3 February 1998 and entered into force on 
14 March 1998.  The Working Party took not e of this commitment.  
  - Requirements on undisclosed information,  including trade secrets and test data 
 
122. In response to requests for information concerning the protecti on of trade secrets and 
undisclosed information in Armenia, notably in vi ew of  Article 39 of th e TRIPS Agreement, the 
representative of Armenia stated that Armenia had not yet developed provisions for the protection of 
trade secrets and undisclosed informat ion. Legislation to cover the prot ection of undisclosed information 
was under preparation. It is
 was intended that this legislation would enter into force upon  from the date 
of Armenia’s accession to the WTO.  The Wo rking Party took note of this commitment. 
 
- Measures to control abuse of intellectual property rights 
 
123. In response to a question, the representative of Armenia stated that legislation regulating unfair 
competition was still und er preparation and will enter into force upon  from the date of  Armenia’s 
accession to the WTO.   The Working Party took note of this commitment. 
  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 63 
 
 
 124. The representative of Armenia also stated that compulsory licensing was provided for under the 
Law on Patents. In cases involving national security, p ublic order or emergencies, the Government could 
insist on compulsory licensing, provided the patent ho lder had not worked the patent within four years 
of registration.  Article 16 of the Law on Patents stated that in the interests of national defense, 
maintenance of public order or in an extreme situati on, the Government without the authorization of the 
right holder, could permit a third party to use the subj ect matter of a patent, obliging the latter to provide 
compensatory remuneration to the right holder.  An y dispute over the amount of compensation had to be 
settled in the courts. A compulsory  licence could only be obtained if a patent has not been used within 
four years and if the proposed user has made effo rts to obtain authorization from the right holder.  A 
licence could not be awarded to a third party if the ow ner of a patent could establish that the failure to 
work  use the patent was attributable to factors beyond the owner’s control. Sim ilarly, under the adopted 
Law on Protection of Trade and Service Marks and Appe llations of Origin, at the request of any person 
trademark protection could be nullified  by a court decision, if a trademar k has not been used within five 
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 bloc k a decision to remove the property right if the 
reasons for not using the trademark we re beyond the control of the owner. 
 
- Enforcement  - Civil judicial procedures and remedies  125. The representative of Armenia stated that civil court procedures were al ways available to deal 
with legal matters relating to intellectual property protection. The courts were  empowered to order the 
payment of damages and court expenses. The othe r remedies envisioned in the TRIPS Agreement 
are 
also within the decision-making auth ority of Armenian courts.   In  response to questions concerning 
foreigners' rights to enforce inte llectual property rights, and whet her 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 Agre ement.  Civil remedies co uld not be ordered as a 
result of administrative procedures. Foreigners enjoye d the same rights as Armenian nationals in this 
area. Remedies against criminal behaviour were available under Armenia’s courts and penal system. Foreigners have the same access to these reme dies as Armenian nationa ls. The Government was 
considering the amendment of existing legislation an d introduction of additional legislation containing 
remedies that were framed in more specific terms fo r the enforcement of intellectual property rights. The 
missing provisions were expected to be
 included in the Civil,  Criminal and Procedure  Civil Procedure 
and Criminal Procedure  Codes, which were now under preparation by the relevant commissions of the WT/ACC/SPEC/ARM/1/Rev.3 
Page 64  
 
 National Assembly and the Ministry of Justice.  These Codes would be adopted by 1 May 1999
 had 
been adopted on 17 June 1998 and 1 July 1998 re spectively and had entered into force on 
12 January 1999.   [The Working Party took note of these commitments.]  
 126. Some members of the Working Party asked wh ether Armenian judicial  authorities had the 
authority to order injunctions or provisional measures against infri ngement 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 provi sional measures.  Article 33 of the Law on Patents 
indicated the areas in which remedies  may be sought through the courts in  the area of patent protection. 
Article 45 of the Law on Protection of Trade and Serv ice Marks and Appellations of Origin, as well as 
Articles 42 to 44 of the Law on Copyright and Neighbouring Rights  provided similar provisions in the 
case of trademarks and , service marks, copyri ghts and neighbouring rights .  
 
 - Provisional measures  127. The representative of Armenia st ated that the civil C ourts also have the n ecessary authority to 
take the provisional measures envisioned in  Article 50 of the TRIPS Agreement. 
  - Administrative procedures and remedies 
 
128. The representative of Armenia stated that civil remedies coul d not be ordered as a result of 
administrative proce dures in Armenia. 
  - Special border measures 
 
129. Some
 members asked whether Armeni a 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 th at although no explicit provisions had so far been developed in this 
area, the judicial authorities were empowered to take the kinds of measures envisioned in  Articles 51 to 
 60 of the TRIPS Agreement. The part of the  procedures, sanctions and fines that were currently lacking 
will be  previously lacking were  provided for in the above-m entioned new Civil Procedure  and Criminal 
Procedure  Codes.  The remaining will be covered by the Criminal and Customs Codes respectively  
which were now under preparation by the rele vant commissions of the National Assembly,  and the 
Ministry of Justice, and the Ministry of Finance and Economy .  According to the commitments  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 65 
 
 
 undertaken by Armenia its le gislation would be in conformity wi th the WTO provisions by 1 May 1999  
from the date of Armenia’s accession to WTO .  [The Working Party took note of these commitments.]  
 
 - Criminal procedures 
 
130. The representative of Armenia stated that at pr esent  Article 140 of the Criminal Code provided, 
that infringement of copyright, publication (disclosur e) of an invention before the application filing, 
appropriation of invention’s authorsh ip, as well as coercion or inclusi on into collaboration of persons 
not participating in the creation of an invention, s hould be punished by imprisonment not to exceed two 
years or by a fine not to exceed dram 300.  Arti cle 157 of the same Code stated that deceiving 
purchasers and customers should be punished by imprison ment not to exceed two years or by a fine not 
to exceed dram 400. In addition, as mentioned ab ove, the missing provisions  were expected to be 
included in the new Criminal Code, which is now unde r preparation by the relevant commissions of the 
National Assembly and the Ministry of Justice. The la tter would be in conformi ty with the provisions of 
Part III of the TRIPS Agreement. The relevant legislation would enter into force by 1 May 1999  from 
the date of Armenia’s accession to WTO .  [The Working Party took note of these commitments.]  
 
- Laws, decrees, regulations and other legal acts relating to the above. 
 
131. Some members of the Working Party stated  that since 1992, Arme nia had had bilateral 
commitments for the protection of in tellectual property rights.  Armeni a should accelerate  its legislative 
process to ensure the full implementation of the TR IPS Agreement from the date of its accession to the 
WTO.  In addition, some members of the Working Part y requested clarification of  the status of the draft 
Law on Trade Marks, Service Marks and Appellati ons of Origin 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.  The representative of  Armenia replied that on   May 1997, the Armenian 
National Assembly adopted the Law on Protection of  Trade and Service Marks and Appellations of 
Origin and the Law on Protection of Trade Name which were in full conformity with Articles 15 to 21 
of the TRIPS Agreement, including th e 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 
 
132. In response to requests for information concerning the numbers of  patent applications filed in 
Armenia, the represen tative of Armenia stated th at during 1993-96,  1059  patent applications had been WT/ACC/SPEC/ARM/1/Rev.3 
Page 66  
 
 filed with the Patent Office. In 544  cases a decision  for granting a provisional patent was adopted, in 
128 cases a patent was refused or the application was withdrawn, and 515  applications were under 
examination. During 1994-96, 15 applications for obtai ning industrial design patent s were filed, 8 from 
foreigners, and each was granted a patent. As regards trade and service marks and appellations of origin, 
after adoption of the Law on National Duty in  September 1996, 1513 applications passed the 
preliminary examination and 513 trad e and service marks we re registered by th e Armenian Patent 
Office. Under the new legislation more than 1200 au thors, theatre and concer t  organizations were 
registered by the Natio nal Copyright Agency. 
 133. The representative of Armenia stated that the Government of  Armenia [would bring all other 
relevant laws into conformity with the TRIPS Agreement by 1 May 1999.]  [The representative of 
Armenia stated that the Government of 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 period.]  [ The 
Working Party took note of this commitment.]  
 VI. Policies Affecting Trade in Services 
- General 
 
134. In response to questions, the representative of Armenia inform ed members of the Working Party 
that Armenian laws and regulations, and the polic y framework did not genera lly distinguish between 
trade in goods and trade in services.  The rights to trade were enshrined in the Law on Enterprises and 
Entrepreneurial Activities.   All enterp rises must be registered and the re gister is open to public scrutiny.  
These requirements apply to all juridical persons, whet her they are corporations or sole entrepreneurs. 
 
135. In reply to requests for an explanation of the Government of Armenia's understanding of the 
different modes of supply, the repr esentative of Armenia noted that in terms of the modes of supply 
identified in the General Agreement on Trade in Services (GATS), the Law on Enterprises and 
Entrepreneurial Activities was releva nt for enterprises selling services across frontiers (mode 1), for 
service supply through commercial presence (mode 3), and for natu ral persons who are independent 
service suppliers (mode 4).  Consumption abroad (mode 3) was not covered in this context.   Armenia 
had not developed any policies that restricted the consumption of services abroad.  Moreover, Armenian 
nationals and residents were at liberty to travel abro ad and consume services within foreign jurisdictions 
if they so wish. 
  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 67 
 
 
 136. As far as commercial presence (mode 3) and natural persons who are independent service 
suppliers (excluding that part of mo de 4 dealing with employees of se rvice suppliers) are concerned, the 
Law on Foreign Investments covered investment in both goods and serv ices.  The law established the 
legal framework for all types of investment involv ing foreign capital, incl uding joint ventures and 
wholly-owned enterprises and subsidiaries, whether the fo reign investor is an indi vidual or an enterprise.  
No restrictions were im posed on the temporary presence of natu ral persons in Armenia, whether as 
employees of foreign service supplie rs or as independent suppliers of services.  In the latter case, 
however, the service supplier would be required to  register in Armenia as a business or sole 
entrepreneur.  137. Armenia's Schedule of Sp ecific Commitments in Se rvices is reproduced in Part II of the Annex 
to the Draft Protocol of Accession.  
VII. Trade Agreements  138. 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 Arme nia’s plurilateral and 
bilateral Free Trade Agreements were consistent with Article XXIV of the GATT 1994.   In response to 
these requests, the representative of Armenia inform ed the Working Party that Armenia had developed a 
network of plurilateral and bila teral trade agreements with vari ous countries.  A number of the 
arrangements were short-term in na ture, designed to respond to particul ar needs, other agreements were 
viewed as more durable, representi ng the Armenian Government’s percep tion 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 tr ade 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 
 139. In response to further requests for informati on on Armenia's trade regiona l trade agreements, the 
representative of Armenia stated that the Treaty 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, Kazakst an, Kyrgyz Republic, Moldova, Russia, Ta djikistan, and Uzbekistan).  The 
treaty committed
 envisaged that  signatories will move  to the eventual establishment of a customs union 
and common market among CIS countries, however, each  signatory might exercise its own discretion on WT/ACC/SPEC/ARM/1/Rev.3 
Page 68  
 
 the pace and timing of integration in to 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, scient ific, and defence matters).  Because the treaty was 
essentially an evolving fram ework 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. 
 140. Also in response to requests for further info rmation, 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 , Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, 
Turkey and Ukraine).  This agreement covered a numb er of fields, including economic cooperation and 
trade, investment, scientific and technical coop eration, 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  through cooperation in such 
areas as transport, international pa yments and industrial development. 
 141. Some members asked whether Armenia had concluded an economic cooperation agreement 
with the European Communities
 European Union .  The representative of Armenia confirmed that the 
Partnership and Cooperation Agreemen t between the European Communities  European Union  and 
Armenia had been signed on 22 April 1996, and th e Interim Agreement on Trade and Trade Related 
Issues between the European Communities  European Union  and Armenia had been signed on 20 
December 1996.  The Interim Agreement would enter  entered  into force by  from  the end of 1997, upon  
after exchange of ratification instruments.  The Agreement did not provide for any trade preferences. 
 
- Bilateral free trade agreements and trade a nd economic cooperation agreements with CIS 
countries 
 142. In response to questions of some members about Armenia's bilatera l agreements with CIS 
countries, the representative of Arme nia stated that bilateral free tr ade agreements (FTAs) had been 
signed with Georgia, Kyrgyz Republic, Moldova, Russian Federation, Tadjik istan, Turkmenistan and 
Ukraine. The initial bilateral free  trade agreement had been authenticated with Kazakstan.  When the 
free trade agreements were establ ished and operationalized, tariffs we re set up at zero level, and non-
tariff restrictions were eliminated. However, under the FTA with  the Russia Federation, each party could  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 69 
 
 
 exempt from duty free treatment any export items subj ect to quotas, licences an d export taxes.  Since 
Armenia did not maintain any export restrictions (o ther than those generall y applicable for public 
security, health and safety reas ons), there was nothing on Armenia’s exception list unde r the free trade 
agreement.  Russia maintained ce rtain export restrictions which c ould be covered by the exception 
provisions of the FTA, but in pr actice, these often did not apply because of the trade and economic 
cooperation agreements that Armenia al so signed annually with Russia (see below).  No 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 Agreem ent with Armenia (1992-1997), the 
Russia Federation had substantially liberalized its fo reign trade (removed quotas, export taxes etc.).  Its 
legislation on tariff and non-tariff  regulation of exports did not provid e for a list of specific products.  
This ensured the conformity of the FTA between Armenia and the Russian Federation with the WTO 
rules on free trade. The bilateral protocol, signed on 28 August 1997, confirmed the fact that substantial 
deviations from the free trade regime between Armenia and Russia were eliminated. 
143. The representative of Armenia further responded that the FTAs we re an outgrowth of the trade 
and economic cooperation agreemen ts that Armenia signed with CIS countries immediately after 
independence, and which in many cases are still oper ational.  Most of these early agreements were 
negotiated annually, they envisaged fr ee trade and they included lists of products that the parties agreed 
to trade with one another.  The pur pose of these agreements was to try to ensure that pre-existing trade 
links were not ruptured altogether in the disarray that followed the breakup of the Soviet Union.  The 
specificity of product-wise commitments varied consider ably, including as to the identification of prices 
and quantities to be exchanged.  Pa rticularly after 1992, product lists tended to become indicative, with 
no prior agreement on prices, and th e commitments were only partially fulfilled.  In 1993, for example, 
product commitments under these agre ements were met to the extent of 20-50 per cent, and figures for 
1994 are expected to be even  were considerably  lower.  From 1995 the prac tice of product commitments 
was eliminated . 
 
- Bilateral clearing arrangements  144. In response to requests for information in re lation to Armenia's barter  trade agreements with 
other countries, the representative of Armenia stated  that barter was the e ssence of the remaining 
clearing arrangements maintained by Armenia.  Bart er was borne of necessity and was not a preferred 
policy.  Barter was deemed essential in the immediat e post-independence period, in order to preserve the 
only trade links that Armenia had at that time, a nd was a feature of the trade and economic cooperation 
agreements described above.  Moreover, barter offers a modicum of energy security, which in that environment remained of paramount importance to the Government.  In addition, transport difficulties 
and a poorly functioning payments system had ofte n made governmental support a sine qua non of WT/ACC/SPEC/ARM/1/Rev.3 
Page 70  
 
 doing business with FSU countries.  As  these kinds of constraints were relaxed, barter was expected to 
disappear. The Government was committed to eliminating barter arrangements as soon as practicable 
and recognized that its role as tr ader or as intermediary in trad e inhibited the establishment of 
independent networks and contac ts with foreign buyers by enterprises which was an essential 
determinant for exporting su ccess.  In1995 the only barter arrangem ents were those with Turkmenistan 
for gas, and with Russia for crude oil and maz out. The agreement with Turkmenistan involved the 
purchase of 2.2 billion cubic meters of gas at US$80  per thousand cubic meters.  Payment for the gas 
was in both cash (US$30 per thousand cubic meters ) and in counterpart products (US$50 per thousand 
cubic meters). Counterpart  products included such items as me tals, chemical products, machinery, 
products of light industry,  and products of food industries (includi ng brandy, wine, jams, and cigarette 
filters).  The clearing arrangements stated the quantities and prices of  goods guaranteed in exchange for 
the energy.  In the case of the 1995 Agreement wi th Turkmenistan, however,  an additional list of 
products that might be exchanged had been included,  in order to provide additional flexibility. The 
agreement with Russia involved the purchase by Armenia of 200,000 tons of mazout and 200,000 tons 
of crude oil under the contract.  The terms of th is agreement were more rigid than those for 
Turkmenistan, and the composition, quantity and prices  of goods fixed in the contract negotiation were 
not subject to any change.  This latt er feature is akin to what a prod uct list represents under a trade and 
cooperation agreement.  Thus, the final compositio n of goods for exchange is  established during the 
currency of the contract. 
 
145. In response to requests fo r amount of trade flows arising from barter trade agreements,  the 
representative of Armenia said that the 1993 clearing arrangement s (which existed with Georgia, the 
Russian Federation and Turkmenistan, and include d metals, paper wood produc ts and industrial raw 
materials as well as energy) involved 74 per cent of total exports and 56 per ce nt of total imports. The 
respective figures in 1994 were 46 per cent for expo rts and 29 per cent for imports. Domestic producers 
were at liberty to choose whether or not to supply goo ds for the clearing arrangements.  But in view of 
the difficulties many enterprises faced in overc oming transport and payments problems relating to 
exports, the Government generally encountered little difficu lty in securing the necessary supplies from 
local industries to fulfill the clearing contracts. As  far as transport and paym ents problems were being 
settled, the importance of barter tr ade gradually decreased and by la te 1995 deliveries under the clearing 
arrangements were abandoned in practice.  In response to requests for current state of barter trade arrangements the representative of  Armenia stated that in 1996 the Government announced its intention 
to cease the barter trade, and none of former ba rter arrangements was reco mmenced. The Government 
of Armenia does not envisage  conducting barter or clearing settlements in the future. 
  WT/ACC/SPEC/ARM/1/Rev.3 
 Page 71 
 
 
 - Bilateral trade and cooperation agreements 
 
146. The representative of Armenia also stated that trade and coope ration agreements had also been 
signed with many non-CIS countries, including Argentin a, Austria, Bulgaria, China, Estonia, Greece,  
Hungary, India, Iran, Latvia, Lithuania, Poland, Roma nia, Syria, the United States and Vietnam.  The 
possibility of such agreements with a number of other countries is under active consideration. These 
agreements seek to strengthen ec onomic links, but do not contain any pr ovisions for preferential trade. 
 
- Other non-trade bilateral agreements  
147. The representative of Armenia noted that Armenia had also signe d a series of other agreements 
on investment and on customs relations.  The reciprocal
 investment promotion and protection  
agreements sought to encourage investment between the parties, primarily by  guaranteeing national and 
more favourable  treatment, non-expropriation (expropriation, an extremely rare measure, may be 
executed only due to public needs, upon providing prel iminary adequate and effective  compensation 
for the confiscated investments),  and unrestricted transfers of inve stment funds and returns from the 
investments, implementation of international arbitr ation practices in the case of disputes between 
parties, as well providing guarant ees against legislative changes .  Investment agreements had been 
signed with 22 countries:   Argentina, Austria, Bulgaria, Canada,  China,  Cyprus Egypt, France, Georgia, 
Germany,  Greece, Iran, Ireland, Italy,  Kyrgyzstan, Lebanon, Ro mania, Turkmenistan,  Ukraine, the 
United Kingdom, the United States and Vietnam.  Agreements on customs relations are intended to ensure cooperation and smooth working relations between the customs services of the signatories.  Such agreements have been signed w ith Georgia, Iran, Tadjikistan,  Turkmenistan and  Ukraine. 
 
148. In response to further reques ts for clarification of the compa tibility of Armeni a's free trade 
agreements with the CIS  States  with Article XXIV of the GATT 1994, the representative of Armenia 
stated that within the framework of the 1994 Fr ee-Trade Agreement among the countries of the 
Commonwealth of Independent States (CIS), Armenia’s plurilateral and bilateral free-trade agreements 
eliminated duties and other restrictive regulations on substantially all trade between the parties.  
Armenia considered that th ese arrangements were c onsistent with  Article XXIV of GATT 1994.  It 
could
 may  be noted that at present  Armenia did  does  not conduct trade with all of the CIS countries, but 
in respect of those countri es with which Armenia did  does  trade, Armenia imposed  imposes  no taxes or 
barriers on its imports and e xports.  These agreements did  do not cover trade in services. 
 WT/ACC/SPEC/ARM/1/Rev.3 
Page 72  
 
 149. The representative of Armeni a confirmed that Armenia would observe the provisions of the 
WTO including  Article XXIV of th e GATT 1994 and  Article V of th e GATS in its trade agreements, 
and that it would ensure that the provisions of th ese WTO Agreement for notific ation, consultation, and 
other requirements concerning prefer ential trading systems, free trade areas, and customs unions of 
which Armenia was a member were met from the da te of accession. The Working Party took note of 
these commitments. 
- Plurilateral trade agreements 
 
150. The representative of Armenia informed the Working Party that the Government of Armenia 
had decided to accede to the Agr eements on Government Procurement a nd Trade in Civil Aircraft.  The 
Government of Armenia would also  accede to the Information Technology Agreement.  The Working 
Party took note of these commitments.  
VIII. Transparency - Publication of Information  151. Some members of the Working Party requested that the Government of Armenia confirm that 
from the date of accession, all laws, regulations, rulin gs, decrees or other measur es related to trade in 
goods or services will be published in  its official publicati on for public review at least two weeks prior 
to implementation, unless a longer period is sp ecified under the releva nt WTO Agreement. The 
representative of Armenia confirme d 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 revi ew at least ten worki
ng days  two weeks  prior to implementation, unless a 
longer period is specified under the relevant WTO Agreement, that in accordance with  Article X of the 
GATT 1994, the published measures wo uld be accessible to traders prio r to implementation, and that no 
law, rule, etc., related to trade would become effe ctive prior to such publication. The Working Party 
took note of these commitments. 
 Notifications 
 
152. The representative of Armenia said that  at the latest upon accession to the WTO
 entry into force 
of the Protocol of Accession,  Armenia would submit all notifications  (other than those required to be 
made on an ad hoc basis)  required by an Agreement constituting part of the WTO Agreement.  Any 
regulations subsequently enacted by Armenia which gave effect to  laws enacted to implement any  WT/ACC/SPEC/ARM/1/Rev.3 
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 Agreement constituting part of the WTO Agreement w ould also conform to the requirements of that 
Agreement.  The Working Party took note of these commitments. 
 
Conclusions 
 
153. The Working Party took note of the explanatio ns and statements of Armenia concerning its 
foreign trade regime, as reflected in this report. The Working Party took note of the commitments given 
by Armenia in relation to certain specific matters, which are reproduced in paragraphs, 15, 21, 28, 31, 
34, 41, 48, 56, 64, 66, 68, 69, 75, 78, 82, 88, 89,  95, 99, 104, 118, 120, 122, 123, 129, 130, 133, 149, 
150, 151 and 152 of this Report.  The Working Pa rty took note that these commitments had been 
incorporated in paragraph 2 of the Protoc ol of Accession of Armenia to the WTO. 
 
154. Having carried out the examination of the forei gn trade regime of Armeni a 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 acced e 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 reproduced in the Appendix to this report,  and takes note 
of Armenia's Schedule of Specif ic Commitments on Services (doc ument ... ) and its Schedules of 
Concessions and Commitments on Agriculture and Goods (document ... )  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 Deci sion is adopted, the Protocol of Accession w ould be open for 
acceptance by Armenia, which would become a Member thirty days after it accepts the said Protocol. The Working Party agreed, therefore, that it had co mpleted its work concerni ng the negotiations for the 
accession of Armenia to the Ag reement Establishing the WTO. 
 
[to be completed] WT/ACC/SPEC/ARM/1/Rev.3 
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APPENDIX 
 
ACCESSION OF ARMENIA
 
 
Draft Decision 
 
  The General Council,   Having regard
 to the results of the negotiations directed  towards the accession of Armenia to the 
Marrakesh Agreement Esta blishing the World Trade Organization and having prepared a Protocol for 
the Accession of Armenia.   Decide
, in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that Armenia may accede to the Marrakesh Agreement Establishing the World 
Trade Organization on the terms se t out in the said Protocol.  WT/ACC/SPEC/ARM/1/Rev.3 
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 PROTOCOL FOR THE ACCESSI ON OF ARMENIA TO THE 
MARRAKESH AGREEMENT ESTABLISHING THE WORLD TRADE ORGANIZATION 
 
DRAFT 
  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 Organiza tion (hereinafter referred to as the "WTO Agreement"), and the 
Government of Armenia, (hereinafter referred to as "Armenia"),   Taking note
 of the Report of the Working Party on the Accession of Armenia to the WTO 
Agreement in document ...  (hereinafter re ferred to as the "Wor king Party Report"), 
  Having regard
 to the results of the negotiations on the Accession of Armenia to the WTO,  
 
 Agree  as follows: 
 
Part I -  General  
 
1. Upon entry into force of this Protocol, Ar menia 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 Armenia accede s shall be the WTO Agreement as rectified, 
amended or otherwise modified by such legal instrume nts as may have entered into force before the date 
of entry into force of this Protocol.  This Protoc ol, which shall include the commitments referred to in 
paragraph 155
 153  of the Working Party Report (docum ent WT/ACC/ARM/1/Rev.3), shall be an 
integral part of the WTO Agreement.  
[3.
 Armenia will notify the Secretar iat annually of the implement ation of the phased commitments 
with definitive dates referred to in paragraphs 155 of the Working Party Re port, and will identify any 
delays in implementation together with the reasons therefore.]  
 4. Except as otherwise provided for in the paragraphs referred to in paragraph 175
 153  of the 
Working Party Report, those obligations in the Mu ltilateral Trade Agreements annexed to the WTO 
Agreement that are to be implemente d over a period of time starting with the entry into force of that WT/ACC/SPEC/ARM/1/Rev.3 
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 Agreement shall be implemented by Armenia as if it had accepted th at Agreement on the date of its 
entry into force. 
 
5. Armenia may maintain a measur e inconsistent with paragraph 1 of Article II of the GATS 
provided that such a measure is recorded in the list of  Article II Exemptions annexed to this Protocol and 
meets the conditions of the Annex to the GATS on Article II Exemptions. 
 
Part II - Schedules
 
 6. The Schedules annexed to this Protocol shall become the Schedule of Concessions and 
Commitments annexed to the Genera l Agreement on Tariffs and Trade 1994 (hereinafter referred to as 
the "GATT 1994") and the Schedule of Specific Co mmitments annexed to th e General Agreement on 
Trade in Services (hereinafter referred to as "GATS") relating to Armenia.  The staging of the concessions and commitments listed in  the Schedules shall be implemented as specified in the relevant 
parts of the respective Schedules. 
 
7. For the purpose of the reference in paragraph 6( a) of  Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Con cessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
 
Part III - Final Provisions
 
 8. This Protocol shall be open for acceptance , by signature or otherwise, by Armenia until ... 
 
9. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by Armenia.  10 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 
Armenia  thereto pursuant to paragraph 8 to each Member of  the WTO and to Armenia. 
 11. This Protocol shall be regist ered in accordance with the provisions of  Article 102 of the Charter 
of the United Nations. 
  WT/ACC/SPEC/ARM/1/Rev.3 
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  Done at Geneva this .... day of .... one thousand nine hundred and ninety ..., in a single copy in 
the English, French and Spanish languages, each text being authentic. WT/ACC/SPEC/ARM/1/Rev.3 
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 ANNEX I 
 
SCHEDULE ...  - ARMENIA 
 
Part I - Goods 
To be circulated in document ... . 
 
Part II - Services 
To be circulated in document ... . 
 
[to be completed] 
__________