WORLD TRADE
ORGANIZATIONG/VAL/N/2/ARM/1
6 August 2003
(03-4128)
Committee on Customs Valuation Original:  English
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE
AGREEMENT ON CUSTOMS VALUATION
Checklist of Issues
ARMENIA
The following communication, dated 15 July 2003, has been received from the Permanent
Mission of Armenia.
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The WTO Notification Agency in the Republic of Armenia submits the attached responses to
the points contained in the checklist.
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1. Questions concerning Article 1:
(a) Sales between related persons:
(i) Are sales between related person s subject to special provisions?
The criteria determining related persons are provided in Article 78 of the Customs Code
of the Republic of Armenia entered into force from 1 January 2001. Provisionsconcerning the sales between related persons are incorporated in the paragraph 2 (e) of
Article 87 and paragraph 1 (h) of Article 88 of the Customs Code.
(ii) Is the fact of intercompany prices prim a facie considered as grounds for regarding
the respective prices as being influenced?
Paragraph (2) (d) of Article 87  provides for the acceptance of transaction price between
related persons as long as the relationship did not influence the price.
(iii) What is the provision for giving the communication of the afore-mentioned grounds
in writing if the importer so requests?  (Article 1.2(a))
Paragraph 1 of Article 95 and paragraph 2 of Article 96 of the Customs Code are the
general provisions for giving valuation related communication.
Paragraph 1 of Article 95 provides that the importer upon written request should be
entitled, within five working days to receive a written explanation of valuation decision
and the method used by the customs bodi es. The mentioned provisions are also
incorporated in the paragraph 2 of Article 96.
(iv) How has Article 1.2(b) been implemented?G/VAL/N/2/ARM/1
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The paragraph 2 (e) of Article 87 and paragraph 1 (h) of Article 88 of the Customs
code provide grounds for examination of the transaction value in case of sale between
related persons. If it is ostensibly low, then, according to the paragraph 3 of Article 88
of the Customs Code, the customs value should be determined according to theprovisions incorporated in Articles 89 through 94 of the Customs Code.
(b) Price of lost or damaged goods:
Are there any special provisions or practical arra ngements concerning the valuation of lost or
damaged goods?
There are no provisions in the Customs Code with respect to the special arrangements for
determination of the Customs valuation of damaged goods .
2. How has the provision of Article 4 to allow the importer an option to reverse the order of
application of Articles 5 and 6 been implemented?
Article 94 (Paragraph 2) of the Customs Code provides the possi bility of reversal of the order of
application of the valuation methods specified in Article 5 and 6 of the Customs Valuation
Agreement upon request of an importer.
3. How has Article 5.2 been implemented?
Article 91 (Paragraph 4) of the Customs Code includes provisions regarding the circumstances
specified in Article 5.2 of the Customs Valuation Agreement.
4. How has Article 6.2 been implemented?
Article 92 (Paragraph 2)  states that , for the purposes of determination of Customs value,
Customs Authorities of RA may, at the producer ’s consent, verify the information provided by
the producer for determination of Customs value in some other country, after notifying in a due
order the government of that country of their intention to conduct a verification, if thegovernment of that country does not object the conduct of such a verification.
5. Questions concerning Article 7:
(a) What provisions have been made for making  value determinations pursuant to Article 7?
Article 93  of the Customs Code provides for the determination of customs values when none
of the other available five methods can be applied.
(b) What is the provision for informing the importer of the customs value determined under
Article 7?
Paragraph 1 of Article 95 and paragraph 2 of Article 96 of the Customs Code are the
general provisions for giving valuation related communication.
(c) Are the prohibitions found in Article 7.2 delineated?
Article 93 of the  Customs Code defines  prohibitions  mentioned in Article 7.2. with the
following content:G/VAL/N/2/ARM/1
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“When the customs value of the goods carried across the customs border of the Republic of
Armenia cannot be determined under the above rules stipulated in this section, the customs
value of the goods shall be determined by other means consistent with the principles and
general provisions of the General Agreement on Tariffs and Trade - on the basis of data
available in the Republic of Armenia. The customs value cannot be determined on the basis of:
a) the selling price in the Republic of Armeni a of the goods produced in the Republic of
Armenia for determining the customs value of the imported goods;
b) a system which provides for the acceptance for customs purposes of the higher of two
alternatives;
c) the price of the goods on the domestic market of the country of export for the calculation of
the customs value of the imported goods;
d) the costs of production, except for the computed  values determined for the identical or
similar goods under Article 92 of this Code;
e) the price of the goods envisaged for export to other countries;
f) minimum or maximum customs values;
arbitrary values.”
6. How have the options found in Article 8.2 been ha ndled?  In the case of f.o.b. application, are
ex-factory prices also accepted?
Article 83 of the Customs Code provides for the inclusion of the mentioned cost items in the
customs value. In the case of f.o.b. applic ation ex-factory prices are not accepted.
7. Where is the rate of exchange pub lished, as required by Article 9.1?
The exchange rate applied by the Customs is derived from the daily foreign exchange auctions
held by the Central Bank of Armenia. The Central Bank announces exchange rates daily andthese rates are published in the press and posted in accounting offices of the Customs bodies.
8. What steps have been taken to ensure co nfidentiality, as required by Article 10?
The provisions concerning the mechanism for the protection of confidential information are
incorporated in the paragraph 2  of Article 95 of the  Customs Code.
9. Questions concerning Article 11:
(a) What rights of appeal are open to the importer or any other person?
The Article 96 of the Customs Code provides for appeal procedures concerning the decisions
and actions of customs bodies to the superior customs body or to the court. The superior
customs body should make its decision regarding the appeal and inform the applicant about
the decision within one month.
(b) How is he to be informed of his right to further appeal?G/VAL/N/2/ARM/1
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Paragraph 2 of Article 96 of the Customs Code provides for keeping the importer informed
of the refusal of the declared customs value and the reasons for that along with importer’s
appeal opportunity.
10. Provide information on the publicatio n, as required by Article 12, of:
(a)   (i) the relevant national laws;
(ii) the regulations concerning the application of the Agreement;
(iii) the judicial decision and administrative rulings of general application relating to the
Agreement;
(iv) general or specific laws being referred  to in the rules of  implementation or
application.
Relevant national laws, regulations, decisions and rulings are published in the Bulletin of
the Government of Armenia or in the Manual of the National Assembly of the Republic
of Armenia.
(b) Is the publication of further rules anticipa ted?  Which topics would they cover?
Yes. One is intended to establish the procedure of determination of the greatest aggregate
quantity of goods imported into the country.
11. Questions concerning Article 13:
(a) How is the obligation of Article 13 (last sentence) being dealt wi th in the respective
legislation?
Article 96 (Paragraph 1) of the Customs Code provides the following:
“If the Customs Authorities find it necessary to determine or verify the Customs value of the
goods declared by the declarant, then Customs formalities shall be carried out according to
the Customs value (transaction price) declared by the declarant, provided 30 days Bank
Guarantee is available for the disputed amount on condition of further final settlement incompliance with the final decision made.”
(b) Have additional explanat ions been laid down?
No additional explanations have been laid down.
12. Questions concerning Article 16:
(a) Does the respective national legislation cont ain a provision requiring customs authorities
to give an explanation in writing as to how the customs value was determined?
Article 95 (Paragraph 1) of the Customs Code provides, that the importer upon a written
request should be entitled, within five working days, to receive a written explanation of a
valuation decision and of a met hod used by the customs bodies.
(b) Are there any further regulations co ncerning an above-mentioned request?
There are no further regulations.G/VAL/N/2/ARM/1
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13. How have the Interpretative Note s of the Agreement been included?
Article 82 (2) gives general provisions to the Inte rpretative Notes of the Agreement.  In addition,
Government Decree N 2170-N dated 12.05.2002 is the legal basis for its implementation duringcustoms valuation.
14. How have the provisions of the Decision on th e Treatment of Interest Charges in the Customs
Value of Imported Goods been implemented?
Article 85 (c) of the Customs Code provides for exclus ion of interest charges from the customs
value.
15. For those countries applying paragraph 2 of the Decision on the Valuation of Carrier Media
Bearing Software for Data Processing Equipment,  how have the provisions of this paragraph
been implemented?
Article 85 (d)  of the customs Code provides for exclus ion of the value of data from the customs
value of carrier media.
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