WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/228/Add.1 
30 April 2010 
 (10-2353) 
Trade Policy Review Body 
6 and 8 April 2010 Original: English/ 
 anglais/  inglés 
 
  
TRADE POLICY REVIEW 
ARMENIA 
Record of the Meeting
 
Addendum  
Chairperson:  H.E. Mr. Bozkurt Aran (Turkey) 
 
 This document contains the advance writte n questions, and replies provided by Armenia.1 
__________________________________________________________________________________ 
 
Organe d'examen des politiques commerciales 
6 et 8 avril 2010  
EXAMEN DES POLITIQUES COMMERCIALES 
ARMÉNIE 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. Bozkurt Aran (Turquie)  
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par l'Arménie.1 
__________________________________________________________________________________  
Órgano de Examen de las Políticas Comerciales 
6 y 8 de abril de 2010 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
ARMENIA 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Bozkurt Aran (Turquía) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Armenia.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/228/Add.1 
 Page 3 
 
 
  REPLIES PROVIDED BY ARMENIA  
TO ADVANCE WRITTEN QUESTIONS 
QUESTIONS FROM ARGENTINA 
WT/TPR/S/228, WTO Secretariat Report 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 
(2) General institutional framework 
(ii) Institutional powers in WTO-related matters 
1. Paragraph 16 of the Report mentions the ex istence of the Armenian Development Agency 
established to assist investors, for example with export promotion activities. 
 Could you explain what form this assist ance takes and what benefits it entails? 
Answer:  
Armenian Development Agency help investors wi th finding relevant information about issues of 
interest, helps to organize country site visits , prepare relevant agenda/program, set up required 
meetings, assist with translation, help to locate site for business, help with company registration.  
All services of Armenian Development Agency are free of charge. 
Moreover it undertakes active role in promoting country among targeted potential investors in 
targeted sectors.  ADA organize the business forums  and exhibitions as well (for more detailed 
information:  www.ada.am). 
III. MEASURES AFFECTING MARKET ACCESS FOR GOODS  
2. In paragraph 40 of the Report it is stated that  importers may incur other customs user fees 
depending on the services supplied by Customs, such as accompaniment of transit shipment and 
warehousing services. 
(a) Could Armenia specify whether there are other services that are supplied by Customs (apart 
from those mentioned in the Report)? 
(b) Could Armenia give details of the total incidence of customs user fees? 
Answer:  
The mentioned issues are regulated by the fo llowing Articles of the RoA Customs Code. 
Article 109.  The "Customs user fees" 
1.  Customs user fees are compulsory payments to be  paid to the State budget in  accordance with the amount 
and procedure established by the present Code that is used for prom otion of customs affairs and increasing 
the level of material and household security and social protection of  customs officials. 
2.  The RA ministry of state revenue shall present accounts about the disposal of user fees amounts in the 
previous year to the RA government within the first 3-month period of each year.  
(cont'd) WT/TPR/M/228/Add.1 
Page 4  
 
  Article 110.  Rates of Customs User Fees 
1.  3,500 drams shall be paid as customs user fees for carrying out customs formalities (except cargo 
processing) related to goods and other articles as well as to remittance of curren cy and foreign currency 
transferred by banks, through the customs border of the Republic of Armenia.  
2.  The amount of customs user fees paid for inspecti on and recording of goods (except goods transported by 
pipelines and electricity transmission) shall be as follows: 
a.  1,000 drams for carrying out customs control of each cargo less than 1 ton of weight; 
b.  300 drams for each additional (or le ss) ton for cargo over 1 ton of weight. 
3.  User fees equal to 500.000 drams shall be paid for Customs control of goods transported through 
pipelines and electricity cable s and for their calculation. 
4.  When customs formalities, or some parts of these formalities related to goods are carried out elsewhere 
than in places determined by the Customs Authorities, for each correspond ing action customs user fees shall 
be equal to two fold of determined amount. 
5.  1,000 drams shall be levied for each document (form) provided by th e Customs Bodies.  The RA Ministry 
of State Revenue shall establish the list of documents mentioned above. 
6.  For carrying out Customs accompan ying on the territory of the Repub lic of Armenia, the amount of 
customs user fees shall be equal to 10,000 dr ams for each 100 km. Customs accompanying by transit 
shipment shall be compulsory  except the cases stipulated in the pres ent Code and in case it is impossible to 
implement the means of the customs s ecurity, and in all other cases it is left up to the carrier and shall be 
carried out on the basis of written request presented by the latter. 
7.  For providing Customs warehousing by the Custom s Authorities, the amount of customs user fees shall 
be: 
a.  1,000 drams daily for cargo under 1 ton of weight; b.  300 drams daily per additional or full ton for cargo weighing 1 ton or more. 
8.  For the purposes of Customs inspection of means of transportation, the amount of customs user fees is: 
a.  2,000 drams for a car with not more than 10 seats; b.  5,000 drams for all other means of transportation. 
Article 111.  Privileges in payment of Cust oms user fees 
The following goods are exem pt from Customs user fees: 
a.  those that during transportation enter the customs territory of Republic of Ar menia within the framework 
of humanitarian aid programs.  Where the Law (and in ternational agreements) does not clearly provide the 
terms of identification of such humanitarian or technical (and other) aid programs, these terms are provided by the Authorised Body of the Government of Republic of Armenia co-ordinating the issues related to 
humanitarian aid; 
b.  accompanying goods transporte d by physical persons across the Customs border of Republic of 
Armenia that are subject to Customs duty privileges defined by the Article 105 of the present Code; 
c.  cultural values exported under the "Temporarily export" regime with notification of intended import in 
accordance with the proced ure established by the legislation in force; 
d.  means of transportation carrying out regular intern ational conveyances in the process of transportation. 
Article 112.  Indexation of Customs User Fees Amount 
From February 2000, for every 12-month period the absolute rate (in drams) of Customs user fees stipulated 
in Article 110 of the present Code shall be increased and decreased by the whole number in percentage of the 
reported change of average value of Dram during the previous year defined by the RA Central Bank.  
(cont'd)  WT/TPR/M/228/Add.1 
 Page 5 
 
 
  Article 113.  Collection and Return of Cust oms User Fees, Responsibility for Non-Payment 
1.  Based on the request of the payer the customs user fees paid in excess of the amount that is calculated 
pursuant to the procedure stipulated by the present Code and other legal acts, shall be credited by the 
Customs Authorities towards other liabilities due to the Customs Authorities or shall be returned no later than 
within 30 days followi ng the receipt of an application by the payer seeking such return.  
2.  The application seeking the return or credit towards other liabilities of customs user fees collected in 
excess, shall be accepted w ithin one year following  the receipt thereof. 
3.  The amount of customs user fee not paid or not fully paid by the persons transporting goods shall be 
collected by the Customs Authorities within a period of  one year following the emergence of the liability to 
pay. 
4.  According to the present Code, the payment of cu stoms user fees shall be charged within a three-day 
period after relevant services have been provided. 
5.  Customs user fees shall be paid in the official currency of the Republic of Armenia. 
6.  Should the payer fail to comply with the payment deadline, a penalty is charged for each day of delay in 
the amount of 0.2% of unpaid customs user fees. 
IV. MEASURES DIRECTLY AFFECTING EXPORTS 
(5) Export finance, insurance and promotion 
3. Paragraph 14 of the Report states that trade finance is provided by private banks, which in 
some cases work with international financial in stitutions such as the EBRD and the IBRD, among 
others. 
(a) How does this financing operate? 
(b) What are the eligibility requ irements for companies? 
(c) What sectors are entitled to benefit from such financing? 
Answer:  
With support of International Financial Institut ions are carried out Trade Facilitation Program 
(for more information:  http://www.banks.am/).   Particularly we can mention case of 
Armeconombank. 
Based on the customers' requirements Armeco nombank together with the European Bank for 
Reconstruction and Development has carried  out Trade Facilitation Program under which 
letters of credit are issued when a credit line is available to the customer. 
The lending interest rate is 4% for amo unts under €30,000 and 9% for amounts exceeding 
€30,000.  Depending on the type and volume of the imported goods, 70% of them can be used as 
security for the loan. 
The commission fee for servicing the letters of credit of Armeconombank and the correspondent 
banks are debited from the cu stomer's account separately. 
Meanwhile, there are other support programmes,  such as Small and Medium Enterprises 
support programme which is carried out by the SME Development National Centre of Armenia (for more information:  http://www.smednc.am/). WT/TPR/M/228/Add.1 
Page 6  
 
  V. OTHER MEASURES AFFECTING INVESTMENT AND TRADE  
(1) Business framework and foreign investment regime (ii) Foreign investment regime 
4. It is stated in paragraph 11 that foreign direct  investment (FDI) into Armenia is officially 
encouraged by means of two incen tives offered exclusively to foreign investors:  a profit tax break 
and a tariff exemption on the importation of certain capital inputs. 
 Please provide details of the profit tax break. 
Answer:
 
Since 1 January 1998, Armenian resident statut ory funds with foreign investments of greater 
than dram 500 million (except for banks and cred it organizations) have been permitted to 
reduce their profit tax as follows: 
Proportion of profit tax reductions from the tax liability of the resident enterprise 
with foreign investment, allowed for the respective years Year when the established investment 
benchmark in the statutory fund of a 
resident enterprise would be fulfilled 
100% 50% 
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  
Tax preferences regime (in terms of profit tax) ha s been in place in Armenia since 1998 and is 
effective until 31 December 2007. 
So far about 70 organisations have benefited from the preferences.  It is worth to mention that a 
significant number of organisations that benefited from tax preferences were registered at offshore zones. 
This brings about some doubts that the tax pref erences provided to foreign investors are used as 
a mechanism for tax evasion, in reality representin g capital that has originated in Armenia.  
This situation creates unequal conditions for economic entities, in particular: 
(a) between foreign and local investors;  and  
(b) among investors of up to 500 million and more. 
Investments by the abovementioned organisatio ns were made in the fields of industry, 
construction, banking and information technology. 
5. Paragraph 14 states that the Government is em powered by legislation to limit and prohibit 
foreign investment on grounds  of "national security". 
6. Could you provide details of the limita tions or prohibitions concerned?  WT/TPR/M/228/Add.1 
 Page 7 
 
 
  Answer:  
According to the Law on Foreign Investments, foreign investors are entitled to conduct any 
activity in any sector not prohibited in Armeni a.  For activities subject to licensing, foreign 
investors shall obtain required license s pursuant to the Law on Licensing. 
For national security reasons (Article 6 of the RoA Law on Foreign Investments), the legislation 
of the Republic of Armenia may define specific locations within the territory of Armenia, 
wherein the activities of foreign investors and ente rprises with foreign investment are limited or 
prohibited.  Until now no any limitations have been applied. 
RoA Law on Foreign Investments 
Article 6.  Legal Status of Foreign Investment 
The legal regime governing foreign investments and the methods of their implementation of the Republic of 
Armenia cannot be less favourable than the regime governing the property, property rights and investment 
activities of citizens, legal entities and unincorpor ated enterprises of the Republic of Armenia. 
To encourage foreign investments in the most significant fields of social and economic development, 
additional privileges for such investments may be established in a manner provided by legislation of the 
Republic of Armenia. 
The legislation of the Republic of Armenia may define those areas of the Republic of Armenia, wherein the 
activities of foreign investors and enterprises with fo reign investment are limited or prohibited due to 
requirements of national security.  
(5) Government procurement 
7. Paragraph 37 states that the Law on Procurement guarantees equal rights for domestic and 
foreign providers.  However, the choice of pr ocurement method may in certain circumstances 
disfavour foreign suppliers. 
 Could you explain the circumstances in which this occurs? 
Answer:  
Pursuant to Article 7 of the Law of Armenia on  Procurements, domestic and foreign natural 
persons, organisations and persons with no citizensh ip have equal rights for participating in the 
procurement process.  The participation of any foreign natural persons, organisations, and 
persons with no citizenship in the procurement may be limited only  for national security 
purposes by a government decree.  Invitations for procurement shall contain information 
(announcement) on whether there are such limit ations/no limitations for foreign natural 
persons, organisations and persons with no citizenship. 
Currently there is not any reason for disfavour forei gn suppliers for participation in the bids, 
just only the minor scales of procurement of goods, works and services can occurs such 
disfavour circumstances. 
(6) Intellectual property rights 
(i) General aspects 
8. Paragraph 47 states that, although Armenia is a member of the World Intellectual Property 
Organization (WIPO) and has signed a number of in ternational agreements on intellectual property WT/TPR/M/228/Add.1 
Page 8  
 
  rights, it is not a signatory to major treaties su ch as the Patent Law Treaty and the Trademark Law 
Treaty, among others. 
 Could you explain why Armenia has decided not to join these treaties? 
Answer:
 
Preparatory works towards accession to RTLT are currently being carried out.  All the 
provisions of PLT are included in the Law of the Republic of Armenia on Inventions, Utility 
Models and Industrial Designs. 
QUESTIONS FROM CANADA Report by the Government  of Armenia (WT/TPR/G/228)
 
Part III.  Trade Policy (3) Services;  (ii) Tel ecommunications and postal services;  paragraph 54, 
page 14: 
The Government Report notes that Armenia is pla nning on taking measures to improve the quality, 
access and competition in the telecommunications sector. 
1. Could Armenia provide information on what measures it intends to take? 
Answer:  
The concept of the development of Electronic Co mmunication Sector has to be presented to the 
Government of the Republic of Armenia for adoption at the end of 2010.  The adoption of the above mentioned concept will allow predefining the further progress.  The legislation and reforms on the telecommunication sector are being harmonized with the European Union principles. 
Report by the Secretariat (WT/TPR/S/228)
 
Part III.  Measures Affecting Market Access for Goods;  (2) Customs Valuation;  
paragraphs 12-13, page 25: 
The Secretariat Report quotes the Commission of the European Communities in stating, "… there is 
still room for improvement in the implementation of  the Customs Valuation Agreement (CVA)".  The 
report goes on to outline that under-declaration of tran saction value is a persistent problem in Armenia 
and as such the use of transaction value, although the preferred method of customs valuation, has been 
low throughout the review period. 
2. Could Armenia indicate what method of customs valuation is most widely used in practice? 
Answer:  
According to the estimation of Customs authority most widely used method of customs 
valuation in Armenia is transaction value method. 
3. When transaction value is not used are a lternative methods for customs valuation in 
compliance with the six acceptable methods of valuation under the CVA?  WT/TPR/M/228/Add.1 
 Page 9 
 
 
  Answer:  
Determination of methods for customs valuation is defined in articles 87-93 of the RoA Customs 
Code.  If Determination of Customs Value by tran saction value method is not applicable by the 
reasons defined in the Customs Code, the ne xt methods shall be applied in succession. 
4. Noting Armenia's efforts to improve transparency  by enhancing the customs electronic system 
and expediting the determin ation of customs valuation, are fu rther efforts planned to continue 
to improve transparency and minimize the number of appeals brought forward by importers related to the rejection of transaction value assigned by customs authorities? 
Answer:
 
Armenia developed the RoA Customs Administrati on Strategy for 2009-2012.  According to the 
Strategy Armenia aims to upgrade the gravity of  goods passed through green channel as well as 
the gravity of customs declarations made through transaction value method. 
Part III.  Measures Affecting Market Access for Goods;  (5) Other Charges Affecting Imports;  
(i) Charges Applied Exclusively to Imports;  paragraph 39-40, page 30: 
The Secretariat Report states that "besides tariffs, im ports are subject to:  a customs formalities fee of 
dram 3,500 (US$10);  and a customs inspection and recording fee of dram 1,000 (US$2.9) for each 
cargo weighing less than one ton and dram 300 (US$0. 9) for each additional ton of cargo.  Goods 
transported through pipelines and electricity cab les are subject to a customs inspection fee of 
dram 500,000 (US$1,500) ...  Importers also have to pay dram 1,000 for each document (form) provided by the Customs Authorities." 
The Report also states that "… Importers may incur other customs user fees depending on the services 
supplied by Customs, such as accompaniment of transit shipment and warehousing services." 
5. Do these fees approximate the cost of services re ndered, as stipulated in GATT Article VIII?  
In particular, what is the justification for basing the customs inspection and recording fee on 
weight? 
Answer:
 
In the past the calculation of customs user fees were based on the customs value (0.003%) of the 
imported goods.  As a result of implemented reforms legislation has been improved.  It is the assumed that the scope of provided inspection se rvices depends on weight/quantity of imported 
goods which are subject to inspection.  The ment ioned issues are regulated by the following 
Articles of the RoA Customs Code. 
Article 109.  The "Customs user fees" 
1.  Customs user fees are compulsory payments to be  paid to the State budget in  accordance with the amount 
and procedure established by the present Code that is used for prom otion of customs affairs and increasing 
the level of material and household security and social protection of  customs officials. 
2.  The RA ministry of state revenue shall present accounts about the disposal of user fees amounts in the 
previous year to the RA government within the first 3-month period of each year.  
(cont'd) WT/TPR/M/228/Add.1 
Page 10  
 
  Article 110.  Rates of Customs User Fees 
1.  3,500 drams shall be paid as customs user fees for carrying out customs formalities (except cargo 
processing) related to goods and other articles as well as to remittance of curren cy and foreign currency 
transferred by banks, through the customs border of the Republic of Armenia.  
2.  The amount of customs user fees paid for inspecti on and recording of goods (except goods transported by 
pipelines and electricity transmission) shall be as follows: 
a.  1,000 drams for carrying out customs control of each cargo less than 1 ton of weight; 
b.  300 drams for each additional (or le ss) ton for cargo over 1 ton of weight. 
3.  User fees equal to 500.000 drams shall be paid for Customs control of goods transported through 
pipelines and electricity cable s and for their calculation. 
4.  When customs formalities, or some parts of these formalities related to goods are carried out elsewhere 
than in places determined by the Customs Authorities, for each correspond ing action customs user fees shall 
be equal to two fold of determined amount. 
5.  1,000 drams shall be levied for each document (form) provided by th e Customs Bodies.  The RA Ministry 
of State Revenue shall establish the list of documents mentioned above. 
6.  For carrying out Customs accompan ying on the territory of the Repub lic of Armenia, the amount of 
customs user fees shall be equal to 10,000 dr ams for each 100 km. Customs accompanying by transit 
shipment shall be compulsory  except the cases stipulated in the pres ent Code and in case it is impossible to 
implement the means of the customs s ecurity, and in all other cases it is left up to the carrier and shall be 
carried out on the basis of written request presented by the latter. 
7.  For providing Customs warehousing by the Custom s Authorities, the amount of customs user fees shall 
be: 
a.  1,000 drams daily for cargo under 1 ton of weight; b.  300 drams daily per additional or full ton for cargo weighing 1 ton or more. 
8.  For the purposes of Customs inspection of means of transportation, the amount of customs user fees is: 
a.  2,000 drams for a car with not more than 10 seats; b.  5,000 drams for all other means of transportation. 
Article 111.  Privileges in payment of Cust oms user fees 
The following goods are exem pt from Customs user fees: 
a.  those that during transportation enter the customs territory of Republic of Ar menia within the framework 
of humanitarian aid programs.  Where the Law (and in ternational agreements) does not clearly provide the 
terms of identification of such humanitarian or technical (and other) aid programs, these terms are provided by the Authorised Body of the Government of Republic of Armenia co-ordinating the issues related to 
humanitarian aid; 
b.  accompanying goods transporte d by physical persons across the Customs border of Republic of 
Armenia that are subject to Customs duty privileges defined by the Article 105 of the present Code; 
c.  cultural values exported under the "Temporarily export" regime with notification of intended import in 
accordance with the proced ure established by the legislation in force; 
d.  means of transportation carrying out regular intern ational conveyances in the process of transportation. 
Article 112.  Indexation of Customs User Fees Amount 
From February 2000, for every 12-month period the absolute rate (in drams) of Customs user fees stipulated 
in Article 110 of the present Code shall be increased and decreased by the whole number in percentage of the 
reported change of average value of Dram during the previous year defined by the RA Central Bank.  
(cont'd)  WT/TPR/M/228/Add.1 
 Page 11 
 
 
  Article 113.  Collection and Return of Cust oms User Fees, Responsibility for Non-Payment 
1.  Based on the request of the payer the customs user fees paid in excess of the amount that is calculated 
pursuant to the procedure stipulated by the present Code and other legal acts, shall be credited by the 
Customs Authorities towards other liabilities due to the Customs Authorities or shall be returned no later than 
within 30 days followi ng the receipt of an application by the payer seeking such return.  
2.  The application seeking the return or credit towards other liabilities of customs user fees collected in 
excess, shall be accepted w ithin one year following  the receipt thereof. 
3.  The amount of customs user fee not paid or not fully paid by the persons transporting goods shall be 
collected by the Customs Authorities within a period of  one year following the emergence of the liability to 
pay. 
4.  According to the present Code, the payment of cu stoms user fees shall be charged within a three-day 
period after relevant services have been provided. 
5.  Customs user fees shall be paid in the official currency of the Republic of Armenia. 
6.  Should the payer fail to comply with the payment deadline, a penalty is charged for each day of delay in 
the amount of 0.2% of unpaid customs user fees. 
6. Is consideration being given to simplif ying and/or reducing customs user fees? 
Answer:  
No. There is not consideration being given si mplifying and/or reducing customs user fees. 
Part III.  Measures Affecting Market Access for Goods;  (6) Import Prohibitions, Restrictions 
and Licensing;  paragraph 52, page 32: 
The Secretariat Report states that "under Armenia' s 2001 Law on Licensing, there are two types of 
licences:  simple and compound (i.e. automatic and non-automatic).  The simple licence should be 
issued by the Ministry of Economy within three days  of submission of a request, and does not require 
the approval of the licensing commission.  The com pound licence, on the other hand, may be issued 
up to 30 days after submission and may only be i ssued on the basis of the conclusions drawn by a 
licensing commission."  It is noted that Arme nia does comply with the Agreement on Import 
Licensing by issuing automatic licenses within a maximum of 10 working days and non-automatic 
licenses within a maximum of 30 days, when appli cations are considered as and when received. 
7. In consideration of Article II, paragraph 2(a )(iii) of the Agreement on Import Licensing, does 
Armenia have the administrative capacity to, where applications for automatic licenses are 
submitted in appropriate and complete form, is sue/approve automatic licences immediately on 
receipt of said applications? 
Answer:  
In accordance to the RoA Law on Licensing the simple license a re granted automatically within 
three days if applications for automatic license s are submitted in appropriate and complete 
form and on 4-th day the app licant can submit the payment of required state duties/fees and 
receive License. 
8. What is the average amount of time needed  for the issuance of a "simple licence"? WT/TPR/M/228/Add.1 
Page 12  
 
  Answer:
 
Simple licenses are granted automatically within three days from the day of submission of 
required documents (application, legal entity's ch arter and the copy of the state registration 
certificate) and payment of required state duties/fees by an applicant.  There are no other criteria or requirements for granting a simple license.  A simple license is valid with no time 
limits. 
9. What imports require the issuance of a "compound license"? 
Answer:
 
According to the Article 43 of RoA Law on Licensi ng the following type of activities subject for 
issuing of a compound license. 
• import or export of narcotic drugs;  
• production, import or trade in of fireworks materials;  
• trade in, import, export and transportati on of natural diamonds, whether or not 
worked, but not mounted or set, as cl assified under codes 710210000, 710221000, 
710231000 of the Goods Nomenclature of Foreign Economic Activity (GN FEA); 
• transport, distribution, import and export of  natural gas;  construction of networks for 
transportation and distribution of natural gas; 
• import or export of: 
o nuclear substances; 
o radioactive substances or devices co ntaining radioactive substances or 
 generating radiation sources; 
o radioactive waste; 
o special substances; 
o special devices;  
o special technologies. 
10. What is the average amount of time needed for the issuance of a "compound license"? 
Answer:  
A compound license is granted within thirty d ays from the day of submission of required 
documents (application, legal entity's charter an d the copy of the state registration certificate, 
qualification certificates, and other informatio n and documents required by law and relevant 
secondary legislation) and payment of required state duties/fees by an applicant, unless other 
terms are stipulated by law.  WT/TPR/M/228/Add.1 
 Page 13 
 
 
  Information and documents required by relevant legislation may include only those that are 
necessary for protection of public and state sec urity and order, public health and morality, 
human rights and freedoms. 
Part IV.  Measures Directly Affecting Exports:  (5) Export Finance, Insurance, and Promotion;  
paragraph 16, page 42: 
The Secretariat Report describes the Armenian Development Agency (ADA) as the government 
agency responsible for export promotion.  The repor t notes that the ADA helps Armenian exporters to 
find markets for their products, performs market st udies, and seeks out partners for joint ventures 
aimed at increasing the volume of exports. 
11. Does the Armenian Development Ag ency focus mainly on promotion of goods exports, or are 
services included in this program as well?  If not,  is there a similar program for the promotion 
of services? 
Answer:  
Armenian Development Agency activities are fo cus on promotion of goods exports, import 
substitution as well as development of export–or iented enterprises.  To achieve it's goal, ADA 
initiate market studies, design development proj ects or plans, perform competitiveness analysis, 
helps Armenian exporters to find markets for their production, organize business forums, 
conferences and exhibitions, support Armenian  enterprises seeks ou t partners for joint 
ventures.  ADA provides information services to Armenian companies as well as any interested parties.  Although Armenian Development Agency  activities are focus mainly on promotion of 
goods exports, ADA works with the service providing  companies as well, such as transporting 
companies, construction companies, marketin g companies, banks, educational and medical 
institutions, etc., provide the range of services such as information services, participation in 
different promotional events, such as business forums, exhibitions, etc. 
Part V. Other Measures Affecting Investment and Trade:  (5) Government Procurement;  
paragraph 37, page 49 and paragraph 39, page 50: 
The Secretariat Report notes that "the choice of procurement method may in certain circumstances 
disfavour foreign suppliers" and notes the various methods of procurement (open tender;  closed 
tender;  restricted tendering;  request for quota tions;  competitive negotia tions;  and single-source 
procurement). 
12. Could Armenia confirm whether there exist any circumstances where foreign suppliers could 
be disfavoured that are outside of the limite d tendering reasons under Article XV of the WTO 
Agreement on Government Procurement? 
Answer:
 
Pursuant to Article 7 of the Law of Armenia on  Procurements, domestic and foreign natural 
persons, organisations and persons with no citizensh ip have equal rights for participating in the 
procurement process.  The participation of any foreign natural persons, organisations, and 
persons with no citizenship in the procurement may be limited only  for national security 
purposes by a government decree.  Invitations for procurement shall contain information 
(announcement) on whether there are such limit ations/no limitations for foreign natural 
persons, organisations and persons with no citizenship. WT/TPR/M/228/Add.1 
Page 14  
 
  Currently there is not any reason for disfavour forei gn suppliers for participation in the bids, 
just only the minor scales of procurement of goods, works and services can occurs such 
disfavour circumstances. 
Part V. Other Measures Affecting Investment and Trade:  (5) Government Procurement;  
paragraphs 40 and 41, page 50: 
The Secretariat Report notes that "according to offi cial estimates, the use of open tendering increased 
to 78% of the total value awarded in 2008.  Neve rtheless, according to Transparency International, 
single-source procurement has been abused in the areas of education, health, and culture", and 
"contract notices for open tenders must be published in the Official Journal on Procurement at least 
30 days prior to the deadline for bid submission.  If the amount is higher than US$7.7 million, notices 
must be published at least 40 days prior to the deadline." 
13. Several aspects of Armenia's current regime ar e not fully compliant with the WTO Agreement 
on Government Procurement (GPA) obligations.  Given that Armenia is in the process of acceding to the GPA, and that this process may be completed in the near term, could Armenia indicate how and by when it will bring its regime into compliance.  For example, the 
Secretariat Report notes the following issues which are not fully compliant with GPA 
obligations: 
a. The apparent abuse of single-source procur ement in several areas (paragraph 40), and 
b. The GPA Article XI.2 (a) requirement fo r a minimum 40-day time period from the 
date of notice publication to the d eadline for accepting bids (paragraph 41)? 
Answer:
 
In the framework of Armenia's accession to the WTO GPA all necessary amendments has been 
elaborated to bring in to conformity the curren t legislation in compliance to the WTO GPA.  
The package of the amendments already discussed within the Government of Armenia and in nearest future will be submitted to Parliament. 
Single-source procurement data, which is presented in the paragraph 40 of WTO Secretariat 
Report, do not include information of executing of dominating procurements, as the acquisition 
cannot be arranged through compet ition base.  The list of the acquisition of procurements is 
adopted by the order of the Minister of Finance and Economy (No. 426-N, 25 April 2005). 
The list of sole-source procurement 
Procurement item 
Natural gas 
Electricity 
Telephone communication 
Irrigation and potable water 
Technical and industrial water 
Authorship control of developers  of urban development documents 
Preparing and broadcasting of Public  television and public radio programs 
Direct purchasing from publishers of mass media 
Higher and post-graduate e ducation, expect for new admissions starting from 2007 
Supplemental educational training, excep t for new admissions starting from 2007 
Education in general education schools 
Training in music schools 
(cont'd)  WT/TPR/M/228/Add.1 
 Page 15 
 
 
  Procurement item 
Training in evening and correspondence schools 
Special general education training 
Out-of-school training 
Industrial training 
Vocational training 
Boarding-school service 
Leasing real estate 
Purchasing the goods made, works performed and services provide d by the Support to Convicts Fund for the needs of the Prison Se rvice 
Hospital care 
Outpatient policlinic care 
Hygiene and anti-epidemic service 
Unaffordable Diagnostic tests 
Health related services 
Procurement of goods, works and services for receiving official delegations and organizing foreign visits 
Procurement of goods and services for elim inating the consequences of natural disast ers and emergencies in the Republic of Arme nia 
and the territories of foreign states 
Legal expertise service 
Insolvency (Bankruptcy) cas e administrators service 
Procurement of goods, works and services fr om organizations founded by the Republic of Armenia Government or municipalities in 
cases indicated by the founders 
Postal Service 
Has lost the force 
Banking services 
Publishing announcement for civ il service vacancies in the Ci vil Service weekly newspaper 
Procurement of technical services for automobile from manufacturer  of that automobile or sole official representative of latter  
Technical service of aircraft 
Production of medals, memorable me dals, orders and boxes for them 
Procurement of technical services (maintenance), including the e quipments for that, from the manufacturer of that goods or the sole 
representative of latter 
According to the Article 25 of the RoA Law on  Government Procurement, notices for open 
tenders must be published at least 30 days prio r to the deadline for bid submission, if the 
amount is higher than dram 90 million, notices mu st be published at leas t 40 days prior to the 
deadline.  
According to the application of Armenia to join the WTO Agreement on Government 
Procurement, the procurement thresholds are define d.  It means that after the membership to 
the Agreement on Government Procurement, if  the prices exceeds the mentioned thresholds, 
notices must be published at least 40 days prior to the deadline for accepting bids (the Law says that the terms for notice activity must not be less than 30 calendar days). 
Part V. Other Measures Affecting Investment and Trade:  (5) Government Procurement;  
paragraph 44, page 51: 
The Secretariat Report notes that "suppliers particip ating in tendering proceedings must provide a 
tender security of 2% of the proposed contract  price, as specified in the invitation". 
14. Could Armenia please indicate whether all tendering proceedings require a tender security?  If 
this is not the case, could Armenia please  describe the conditions under which a tender 
security is required? 
15. Could Armenia please indicate in what format the tender security is required to be submitted? WT/TPR/M/228/Add.1 
Page 16  
 
  Answer:
 
According to the RoA Law on Government Pr ocurement the requirement the tender security 
concerns to tender, limiting tender, tender negotiations, request quotation procurements activities. 
The contract bid safety requiremen ts are specified in the RoA D ecree No. 853-N.  In accordance 
with these measures the safety of bid is exp ressed in form of cash or bank guarantee. 
The draft RoA Law on Government Procurement de fines security of bid will be presented by 
the applier in the form of unilateral affirmation. 
Part V. Other Measures Affecting Investment and Trade:  (5) Government Procurement;  
paragraph 44, page 51: 
The Secretariat Report notes that "in 2008, some 20% of all tenders were declared invalid". 
16. Given the large number of invalid tenders, c ould Armenia provide an explanation of the 
reasons that such tenders were declared invalid? 
Answer:
 
The reason of the postponed the tenders were conn ected with the absence of application which 
could be explained by the small scale of contracts. 
QUESTIONS FROM THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, 
KINMEN AND MATSU 
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/228)  
III. MEASURES AFFECTING MARKET ACCESS FOR GOODS 
(8) T ECHNICAL REGULATIONS AND STANDARDS  
(Page 37, paragraph 84) 
The Report indicates that the provisions of the La w on Conformity Assessment of 2004 on first- and 
second-party assessments and on market surve illance are not very clear nor detailed. 
Is Armenia prepared to make the provisions  of this Law clearer and more detailed in the 
above-mentioned areas? 
Answer:  
Currently the working group on TBT related issues formulated under EU-Armenia Deep and 
Comprehensive Free Trade Agreement negotiation s preparation process drafting the new Law 
on Conformity Assessment (the dr aft will be ready by the end of 2010).  For filling the gap in the 
legislative and institutional framework in the TBT  area the following activities are initiated: 
• Drafting, adopting and starting implementing a governmental programme for 
approximating the Armenian legislation with the EU acquis in the area of technical regulations and standards for industrial products.  WT/TPR/M/228/Add.1 
 Page 17 
 
 
  • Achieving progress in the operational developmen t of the national institutional system in 
the areas of technical regulations, standa rdization, accreditation, certification, 
metrology, conformity assessment and market surveillance.  
To provide implementation of above mentioned ac tivities, the following measures were initiated 
in 2009: 
• A thorough gap assessment in the areas of  technical regulations, standardization, 
accreditation, certification, metrology, confor mity assessment and ma rket surveillance. 
• The review and amendment of the horizontal legislation comprising the Law on 
Standardisation, the Law on Conformity As sessment and the Law on Uniformity of 
Measurements. 
• A governmental reform of the inspection sy stem in Armenia encompassing inspection 
(market surveillance) of industrial products. 
The immediate objective of the Ministry of Economy for 2010 is to achieve a governmental 
approval of the quality infrastructure reform a nd to get the new package of horizontal 
legislation in the TBT area adopted by the national parliament.  In 2011, the focus will be shifted towards the implementation of the in stitutional reform and sectoral alignment of 
legislation. 
V.  OTHER MEASURES AFFECTING INVESTMENT AND TRADE 
(1)  B
USINESS FRAMEWORK AND FOREIGN INVESTMENT REGIME  
(ii) Foreign investment regime 
(Page 45, paragraph 13) 
As stated in the Report, there are no legal restrictio ns to the participation of foreign investors in any 
economic activity in Armenia.  The only exception is set by the Constitution, which denies foreign 
citizens and persons without citizenship the right to own land in Armenia.  However, foreigners are 
allowed to use land through lease contracts with an Armenian counterpart. 
Could Armenia please advise whether any corporat e entity, invested in by foreigners according to 
Armenian investment laws and legally incorporated in  Armenia, is allowed to own buildings and land 
for the purpose of operating in Armenia? 
Answer:  
According to the Article 11 paragraph 4 of RoA Law on Joint Stock Companies "Foreign 
persons/entities may found companies and participate in them on the same grounds as Armenian 
citizens and legal entities".  According to our legislation the foreign companies or corporate 
entities can own buildings and land for the purpose of operating in Armenia. 
QUESTIONS FROM THE EUROPEAN UNION 
REPORT BY ARMENIA (WT/TPR/G/228) 
II. ECONOMIC ENVIRONMENT 
(2) T HE DOMESTIC ECONOMY  
Page 8, Paragraph 25 and 26 
1. What concrete long-term measures have Armenia put  in place or is preparing with the view to 
reducing the vulnerability to fi nancial crises in the future? WT/TPR/M/228/Add.1 
Page 18  
 
  Answer:
 
The overall goal of anti-crisis policies in Armenia is to prevent the econo mic crisis and reduction 
of employment, as well as to create basis for grow th in post-crisis stage and long-term effective 
development.  The package of implemented anti- crisis policies is made up the following main 
components: 
1. implementation of balanced  macroeconomic policies; 
2. support to investment programs co ntributing to economic development; 
3. improvement of business environment and support to entrepreneurship; 
4. implementation of large-scale projects aimed at infrastructures creation and 
development; 
5. social risks management; 
6. carrying out reforms directed towards growth  and development in post-crisis period. 
Currently the Ministry of Economy initiated the works of drafting "Export lead growth" 
strategy of Armenia.  This will ensure reduction of our vulnerability of possible financial crises and sustainable economic growth. 
2. Could Armenia elaborate on its strategies to lay the foundations for a competitive and 
sustainable growing economy in 2010 and beyond? 
Answer:
 
In 2008 the RA Government rolled out the "seco nd generation reforms" pursuing the goal of 
increasing the competitiveness of Armenia.  Th e long-term objectives of the reforms and the 
policy priorities were envisaged in the "Sustain able Development Program" (PRSP-2), which is 
aimed at decreasing the asymmetries in econo mic development, welfare increase and human 
development through implementation of active de velopment policies.  The reforms are based on 
the efficient governance both of public and priv ate sectors, symmetric regional development, 
efficient tax and customs system, development of  e-governance, and formation of IT society. 
The main objective of the economic development strategy of the Government of Armenia is the 
increase of the country's global competitiveness level. 
Particularly, the following mid-term a nd long-term objectives are set forth: 
• In midterm perspective transition from a resource based development stage 
(classification of the world economic forum)  onto investment based development stage, 
during which resources must be attracted to apply modern, energy saving technologies, which will allow a diversified production. 
• In a long term perspective, transition to knowledge based development stage ensuring 
the availability of commercialized inventions and innovative technologies, and 
competitive new products in developed markets.  WT/TPR/M/228/Add.1 
 Page 19 
 
 
  (3) F OREIGN TRADE AND PAYMENTS  
(i) Trade Page 9, Paragraph 31 
Armenia recognizes that the non-diversified structure of  its exports as a factor in the relative modest 
share of international trade in its economy. 
3. Could Armenia elaborate on actions it is taking to increase and diversify its exports of goods 
and services? 
Answer:
 
The Government of Armenia has taken several me asures for the preparation of a Deep and 
Comprehensive Free Trade Agreement negotiation  process.  This assumes most serious and 
consistent institutional reforms in a number of s ectors, that is, non-tariff regulation procedures, 
standardization and certification systems, licen sing, copyright, competition, procurement, 
phytosanitary systems etc.  This will allow not only improving business procedures and the 
protection of consumer rights, but also crea ting real grounds for export expansion. 
III. TRADE POLICY 
(5) B ILATERAL AND REGIONAL ARRANGEMENTS  
Page 15, Paragraph 62 
4. Could Armenia elaborate on how it aims to en courage sustainable development and core 
international social and environmental standard s in the context of negotiations with third 
countries? 
Answer:  
Environmental protection and natural resource ma nagement issues set forth in the Poverty 
Reduction Strategy enacted in 2003 pursued the following objectives to provide guarantees for the implementation of the poverty reduction policy: 
1. efficient use of forest resources; 
2. eliminate the extreme air pollution; 
3. mitigate the negative consequences of global ecological changes; 
4. prevention of soil degradation, limiting hum an activity that causes desertification; 
5. improvement and effective utilization of meadows; 
6. efficient management and use of water resources, restoration of the Lake Sevan 
ecological balance and relevant conditions to ensure preservation natural balance; 
7. municipal waste treatment and management of hazardous industrial waste. 
In the conditions of stable economic growth, the current approach of national environmental 
policy should focus on ensuring availability of natural resources for future growth, their 
balanced use and establishment of guarantees fo r prevention of environmental pollution.  
Armenia's integration in regional and intern ational cooperation frameworks poses new 
requirements in terms of environmental management, including the creation of sound WT/TPR/M/228/Add.1 
Page 20  
 
  mechanisms for monitoring of transboundary impact of movement of hazardous and toxic 
waste and genetically modified organisms.  To day's challenges of environmental management 
require stronger regional and international coopera tion in the domains of setting up sound 
environmental management mechanisms and inst itutional structures, inter-sector cooperation, 
environmental impact assessment and mitigation and p revention of risks.  In the last 15 years, 
Armenia has mostly completed the development of the national environmental policy and 
legislation in the framework of internatio nal environmental protection instruments and 
European regional processes.  The national polic y and legislation for environmental protection 
pursue the following objectives: 
• prevent or limit detrimental impact on human health and environment; 
• protect biodiversity; 
• ensure adequate rate of recovery of renewable natural resources; 
• ensure rational and efficient use of non-renewable natural resources. 
REPORT BY THE SECRETARIAT (WT/TPR/S/228)  
SUMMARY OBSERVATIONS (3) M
EASURES AFFECTING MARKET ACCESS FOR GOODS  
Page x, Paragraph 16 
5. What further measures does Armenia envisage in order to improve customs procedures, 
including with regard to addressing corruption? 
Answer:  
As a response to recommendations made follo wing the European Commission's fact-finding 
mission to Armenia in February 2009, the GoA has identified the follo wing main areas as 
requiring attention in the process of preparing for a DCFTA.  In three of these – Customs Value, Simplified Procedures, and Legal Fram ework – reforms are already being undertaken 
with the assistance of the EU Advisory Group. 
Whilst the existing legal provisions governing customs valuation have passed WTO scrutiny, 
Customs' current reliance on reference prices and/ or requests for information from other 
Customs administrations as its principal means for determining the value of imported goods is 
insufficient.  In order to meet international st andards of good practice, Customs will develop 
and employ a range of post-clearance audit checks , at traders' premises, designed to examine all 
of the various records and systems that contain information relating to the value of import 
consignments.  This approach will observe the spirit of the WTO Valuation Agreement and 
provide a basis for objective assessment.  Adop ting – and making public – an audit-based 
approach to customs valuation will also help to  reduce suspicion amongst some sectors of the 
business community that the current system is se t up to promote bargaining over the value that 
is eventually accepted for customs purposes. 
The process of developing and introducing ri sk-based frontier and post-clearance controls, 
which are essential trade facilitation measures, is  underway.  Attention is also being paid to 
developing more effective arrang ements for coordination and sharing of information between 
Customs and other border control agencies, and to the rationalisation and simplification of 
border controls.  In the long er term, the approval of simplif ied procedures for compliant  WT/TPR/M/228/Add.1 
 Page 21 
 
 
  traders will also be introduced, with a view to establishing a platform for the longer-term 
development of an Authorised Economic Operator (AEO) scheme, along EU lines. 
Measures will also be taken, in the longer term , to abolish the Customs administrative fees 
which have an equivalent effect to import duties. 
Effective Customs control over the importation of counterfeit or pirated goods needs to be 
developed.  This will require the setting up of a specific function within the Customs service, the 
development of the necessary administrative capacity through extensive training, and the 
development of effective relationships between Customs and property rights holders. 
The body of Customs legislation requires a f undamental review to ensure DCFTA compliance. 
To improve the efficiency and transparency of it s customs clearance, application of legislation 
on customs valuation Armenia is going to implement the following measures: 
Simplify the procedure for determination of customs value through the transaction value method, as a result 
of modernization of the post-clearance control function 
Ensure transparency and publicity of customs proced ures through the State Re venue Committee website.  
Publish handbooks explaining the information regarding the customs procedures, customs value, manuals and 
guidelines 
Update the Customs legislation to bring into conformity with international standards 
Establish a performance appraisa l system for Customs officers 
Foreign training for customs staff in higher customs schools of other countries 
Obtain different educational programs on all customs service areas, to make the trainings more effective 
Improve the material security of the customs staff (enhanced security while being on duty, staff insurance) 
Develop and manage a rotation system for the customs staff 
Create information formation and collection database in the risk management system 
Create a system for monitoring, control,  risk elimination or risk reduction in the system of risk management 
Ensure the necessary legal bases for submission of electronic documents, verified by an e-signature 
Introduce an electronic payment system 
Analyze the possibility of producing th e bill of landing before arrival of cargo at the customs checkpoint and 
associated needs 
Introduce the "one stop shop" / "single window" principle 
Introduce the institute of "Compliant Economic Entities" 
Introduce the institute of "Authorized Economic Entities" 
Introduce an advance payment and bank guarantee scheme for imported goods and goods in transit 
Introduce special software to allow the permanent m onitoring of clearance time and reducing excess time 
Establish a joint consulting centre to provide technical assistance for economic entities on customs 
procedures and IT 
Bring the list and contents of documents produced by foreign traders to the customs bodies into conformity with international standards 
Introduce a unified electronic management system for exchange of information between customs houses and customs warehouses 
 
(cont'd) WT/TPR/M/228/Add.1 
Page 22  
 
  Conclude intergovernmental agreements on mutual a ssistance in customs matters with other governments 
Accede the revised Kyoto Convention 
Cooperate with Georgia with respect to establishing a joint border customs station between RoA and Georgia 
Develop a unified information database between differ ent government entities with a view to increasing the 
efficiency of the border control 
Refurbishment of Customs Administration Anti-Smuggling units with modern equipment and devices 
Establish premises for inspection and storage of customs goods 
Establish container platforms at all border customs checkpoints and customs warehouses 
Install scanners to examine vehicles, X-rays, equipmen t for detecting radioactive or ozone layer depleting 
substances, and electronic scales at border customs checkpoints and customs warehouses 
Establish customs laboratories for classification and expert examination of risk-prone goods and development 
of respective legal acts 
Introduce a vehicles control system which will establish control over the vehicles moving across the area of the country 
Obtain technical means to raise the e ffectiveness of Post-clearance control 
Develop post-clearance control procedures 
Training for specialists dealing with Post-clearance audit function 
(4) M EASURES DIRECTLY AFFECTING EXPORTS  
Page xi, Paragraph 26  
6. Does Armenia intend to take additional steps so  as to simplify origin certification and reduce 
its cost? 
Answer:  
Currently, the Ministry of Economy drafted a new RoA Government Decree on the Procedure 
of Granting the Certification of Origin and Organizing the Examination.  According to the drafted decree the certificate fees will be fixed and system for granting certificates of origin will 
be simplified. 
III. MEASURES AFFECTING MARKET ACCESS FOR GOODS 
(2) C
USTOMS VALUATION  
Page 25, Paragraph 13 
7. Could Armenia indicate the percentage of cases when declared transaction value was 
accepted by customs? 
Answer:  
According to the estimation of Customs authority most widely used method of customs 
valuation in Armenia is transaction value method. 
8. Which method of verification of customs valu e is most used next to transaction value?  WT/TPR/M/228/Add.1 
 Page 23 
 
 
  Answer:  
Determination of methods for customs valuation is defined in articles 87-93 of the RoA Customs 
Code.  If Determination of Customs Value by Tran saction Price Method is not applicable by the 
reasons defined in the Customs Code, the ne xt methods shall be applied in succession. 
9. In the case of under invoicing, could Armenia provi de more information on the elements that 
lead the authorities to reject the low value as well as on the next step after rejecting the 
transaction value? 
Answer:  
See the answer of Question 8. Page 25, Paragraph 14 
10. Could Armenia explain what is meant by "method used by customs authorities" referred to in 
paragraph 14? 
Answer:
 
The "method used by customs authorities" as it is determined in articles 87-93 of the RoA 
Customs Code, is the methods for customs valuation. 
(3) R ULES OF ORIGIN  
Page 25, Paragraph 18 
11. Could Armenia inform when the customs authority (SRC) is planned to take over the 
responsibility for issuing preferential certificates of origin? 
Answer:  
Although there is already a functioning system of certification and verification of origin, a 
transfer of the functions of certification and verification of origin from the Chamber of 
Commerce (CoC) to Customs will eventually be required.  In the interim, measures will be 
introduced (a) to ensure closer cooperation  between the CoC and Customs in sharing 
information on trade data and cases of fraud, (b ) to generate greater use of requests for post 
verification, and (c) to introduce on-the-spot ch ecks when handling post verification requests – 
which are a matter for the relevant GoA authorities, not the CoC. 
These reforms, in particular the shifting of responsibility to Customs for certification and 
verification of origin, will require the setting up of a specific function within the Customs service, and the development of the necessary administrative capacity through extensive 
training. 
Once the origin function has been transferred  to Customs, the organisation will develop a 
system of binding origin rulings (as a logical progression of another essential measure, namely 
the introduction of binding tariff rulings). WT/TPR/M/228/Add.1 
Page 24  
 
  (4) T
ARIFFS  
(i) MFN applied tariff Page 27, Paragraph 25 
12. Is Armenia envisaging any changes in the cu rrent tariff structure in agriculture and 
non-agriculture sectors in the near term? 
Answer:
 
There are no any plans for changing the current tariff structure in agriculture and 
non-agriculture sectors. 
(5) O THER CHARGES AFFECTING IMPORTS  
(i) Charges applied exclusively to imports 
Page 30, Paragraphs 39 and 40 
13. Could Armenia explain the reasons for the dive rsity of fees for customs formalities mentioned 
in paragraphs 39 and 40 and their comp liance with GATT Arts. III and VIII? 
Answer:  
The mentioned issues are regulated by the fo llowing Articles of the RoA Customs Code. 
Article 109.  The "Customs user fees" 
1.  Customs user fees are compulsory payments to be  paid to the State budget in  accordance with the amount 
and procedure established by the present Code that is used for prom otion of customs affairs and increasing 
the level of material and household security and social protection of  customs officials. 
2.  The RA ministry of state revenue shall present accounts about the disposal of user fees amounts in the 
previous year to the RA government within the first 3-month period of each year.  
Article 110.  Rates of Customs User Fees 
1.  3,500 drams shall be paid as customs user fees for carrying out customs formalities (except cargo 
processing) related to goods and other articles as well as to remittance of curren cy and foreign currency 
transferred by banks, through the customs border of the Republic of Armenia.  
2.  The amount of customs user fees paid for inspecti on and recording of goods (except goods transported by 
pipelines and electricity transmission) shall be as follows: 
a.  1,000 drams for carrying out customs control of each cargo less than 1 ton of weight; 
b.  300 drams for each additional (or le ss) ton for cargo over 1 ton of weight. 
3.  User fees equal to 500.000 drams shall be paid for Customs control of goods transported through 
pipelines and electricity cable s and for their calculation. 
4.  When customs formalities, or some parts of these formalities related to goods are carried out elsewhere 
than in places determined by the Customs Authorities, for each correspond ing action customs user fees shall 
be equal to two fold of determined amount. 
5.  1,000 drams shall be levied for each document (form) provided by th e Customs Bodies.  The RA Ministry 
of State Revenue shall establish the list of documents mentioned above. 
(cont'd)  WT/TPR/M/228/Add.1 
 Page 25 
 
 
  6.  For carrying out Customs accompan ying on the territory of the Repub lic of Armenia, the amount of 
customs user fees shall be equal to 10,000 dr ams for each 100 km. Customs accompanying by transit 
shipment shall be compulsory  except the cases stipulated in the pres ent Code and in case it is impossible to 
implement the means of the customs s ecurity, and in all other cases it is left up to the carrier and shall be 
carried out on the basis of written request presented by the latter. 
7.  For providing Customs warehousing by the Custom s Authorities, the amount of customs user fees shall 
be: 
a.  1,000 drams daily for cargo under 1 ton of weight; 
b.  300 drams daily per additional or full ton for cargo weighing 1 ton or more. 
8.  For the purposes of Customs inspection of means of transportation, the amount of customs user fees is: a.  2,000 drams for a car with not more than 10 seats; 
b.  5,000 drams for all other means of transportation. 
Article 111.  Privileges in payment of Cust oms user fees 
The following goods are exem pt from Customs user fees: 
a.  those that during transportation enter the customs territory of Republic of Ar menia within the framework 
of humanitarian aid programs.  Where the Law (and in ternational agreements) does not clearly provide the 
terms of identification of such humanitarian or technical (and other) aid programs, these terms are provided 
by the Authorised Body of the Government of Republic of Armenia co-ordinating the issues related to 
humanitarian aid; 
b.  accompanying goods transporte d by physical persons across the Customs border of Republic of 
Armenia that are subject to Customs duty privileges defined by the Article 105 of the present Code; 
c.  cultural values exported under the "Temporarily export" regime with notification of intended import in 
accordance with the proced ure established by the legislation in force; 
d.  means of transportation carrying out regular intern ational conveyances in the process of transportation. 
Article 112.  Indexation of Customs User Fees Amount 
From February 2000, for every 12-month period the absolute rate (in drams) of Customs user fees stipulated 
in Article 110 of the present Code shall be increased and decreased by the whole number in percentage of the 
reported change of average value of Dram during the previous year defined by the RA Central Bank.  
Article 113.  Collection and Return of Cust oms User Fees, Responsibility for Non-Payment 
1.  Based on the request of the payer the customs user fees paid in excess of the amount that is calculated 
pursuant to the procedure stipulated by the present Code and other legal acts, shall be credited by the 
Customs Authorities towards other liabilities due to the Customs Authorities or shall be returned no later than within 30 days followi ng the receipt of an application by the payer seeking such return.  
2.  The application seeking the return or credit towards other liabilities of customs user fees collected in 
excess, shall be accepted w ithin one year following  the receipt thereof. 
3.  The amount of customs user fee not paid or not fully paid by the persons transporting goods shall be 
collected by the Customs Authorities within a period of  one year following the emergence of the liability to 
pay. 
4.  According to the present Code, the payment of cu stoms user fees shall be charged within a three-day 
period after relevant services have been provided. 
5.  Customs user fees shall be paid in the official currency of the Republic of Armenia. 
6.  Should the payer fail to comply with the payment deadline, a penalty is charged for each day of delay in 
the amount of 0.2% of unpaid customs user fees. WT/TPR/M/228/Add.1 
Page 26  
 
  (ii) Indirect taxes 
Page 30, Paragraph 41 
We note that levels of both VAT and excise tax fo r cigarettes imported to Armenia are higher than 
these taxes' levels applied for sim ilar domestic production.  This is  in breach of Article III:2 GATT as 
well as in contradiction with Armenia's specific commitments undertaken on accession to the WTO.  
The current system of a single specific "presumptiv e" tax encompassing in case of imported cigarettes 
the VAT and excise tax and the customs duty can lead to cases where the customs duty applied 
exceeds the 15% which is the rate bound ad valorem  in Armenia's WTO schedules. 
14. Could Armenia inform on its plans to ensure full conformity of its tax regime for cigarettes 
with its WTO obligations? 
Page 31, Paragraph 48 
15. Could Armenia provide details on any plans to revise excise policy for wine and spirits? 
16. Could Armenia explain its practice of applying ad valorem  excise duties on imported and 
domestic products and how it ensures that no discriminatory treatment occurs? 
Answer:
 
Government of Armenia intends to abolish all kinds of specific/non- ad valorem  tariffs and 
introduce ad valorem  rates as a key principle of tax policy. 
By the Decree of Prime Minister a specific workin g group, chaired by the Minister of Finance, 
has been formulated to address the issue.  Part icularly mentioned working group drafting the 
appropriate legislation on excise tax for wine and spirits and cigarettes. 
The draft law amendments will be submitted to th e Government consideration in coming weeks. 
In addition Government has commitment to ad dress these issues by 2011 in the framework of 
cooperation with IMF. 
(8) T ECHNICAL REGULATIONS AND STANDARDS  
Page 34, Paragraph 69  
The EU appreciates the further advancement of th e Armenian Accreditation Agency's activities, and 
Armenia's efforts to ensure that its accreditation bo dy meets international standards.  The EU would 
like to encourage Armenia to take the necessary step s in order for its accreditation body to join the 
ILAC and IAF international accreditation schemes. 
Page 36, Paragraph 78  
It is mentioned, with regard to notified technical  regulations, that "Armenia allowed on average 43 
days for comments from other WTO Members, and respected the 6 months period between 
publication and entry to force for at least half of th e notifications".  The EU would like to note that the 
TBT Committee has recommended that  the time limit for comments on notifications should normally 
not be less than 60 days.  Furthermore, the Co mmittee has decided that the "reasonable interval" 
between publication and entry into force shoul d normally be not less than six months. 
17. What actions has Armenia undertaken in order to  work towards an improved fulfilment of its 
transparency obligations under the TBT Agreement?  WT/TPR/M/228/Add.1 
 Page 27 
 
 
  Answer:  
Aimed to fulfil the transparency under the TBT Agreement, Armenia is currently being 
developed efficient methods to ensure an effect ive notification system, to develop continuous 
cooperation between the TBT enquiry points in Armenia and Notification Authority. 
(9) S ANITARY AND PHYTOSANITARY MEASURES  
Page 37, Paragraph 86 
18. Could Armenia update on the state of play in approximating its SPS legislation with 
international standards? 
Answer:  
Among the priorities for the reform, the follo wing points were identified by both the 
Government of RoA and the European Commission: 
• serious gaps in legislation (as to food safe ty, rules of effective implementation and 
enforcement of legislation, registration of animals, etc.), as well as 
• serious weaknesses in implementation and enforc ement (as to identification, traceability, 
export certification, control of residues of ve terinary products, practical performance of 
food safety control and approval of esta blishments, capacity of laboratories). 
A number of activities have been planned to arrange the mentioned above issues: 
• The legal structure will be reviewed from the stand point of conformity with the acquis , 
and a timetable for approximation will be developed. 
• The institutional problems, especially pert aining to overlapping and insufficiently 
defined competences, will be adapted to fa cilitate implementation and enforcement and 
to provide sufficient guarantees for market surveillance. 
• The implementation of new requirements by economic operators and state institutions 
will be supported.  In view of the amount  and profoundness of problems in the area, 
prioritisation of activities will be necessary. 
19. Could Armenia list planned additional regulati ons and indicate the timeframe when drafts 
may be available? 
Answer:  
In February 2010, the Ministries involved in SPS, (Agriculture, Health  and Economy), agreed 
that food safety should be the first area to be  tackled.  Work on the National Food Safety 
Strategy has been initiated.  The Strategy is expect ed to be adopted in the third quarter of 2010.  
It will address a number of important horizontal i ssues with regard to legislation, institutional 
structure and implementation.  It is also expect ed to help to identify problems in various 
areas/sectors, which should be tackled in the second phase of the reform. 
Alongside with the work on the strategy, p ilot sectors for comprehensive approximation of 
vertical regulation will be identified on the ba sis of their economic potential and trade/export 
relevance.  Regulation in those sectors will be  planned and approached in the second half of 
2010.  They will serve as an example for regulatio n of remaining relevant sectors.  A tentative WT/TPR/M/228/Add.1 
Page 28  
 
  timetable for those reform activities is being prepared as an element of the Deep and 
Comprehensive Free Trade Agreem ent Concept Paper, which is currently elaborated under the 
auspices of the Ministry of Economy. 
20. Could Armenia provide more details on its pl ans to improve and strengthen administrative 
capacities and competences of th e institutions in the food safety area and the linkages and 
cooperation between these institutions, in order to  ensure that the institutional system will be 
able to introduce and implement effectively food safety legislation approximated with the 
international standards? 
Answer:
 
Work on the National Food Safety Strategy has b een initiated.  The Strategy is expected to be 
adopted in the third quarter of 2010.  It will address a number of important horizontal issues 
with regard to legislation, institutional structure and implementation. 
At the same time, in the context of the prep aration of the EU-Armenia DCFTA negotiation 
process, a number of activities has been planned: 
• The legal structure will be reviewed from the stand point of conformity with the acquis , 
and a timetable for approximation will be developed. 
• The institutional problems, especially pert aining to overlapping and insufficiently 
defined competences, will be adapted to fa cilitate implementation and enforcement and 
to provide sufficient guarantees for market surveillance. 
The implementation of new requirements by econo mic operators and state institutions will be 
supported. 
Page 37, Paragraph 87 
21. Does Armenia participate in the different Codex Committees and in the Codex Commission? 
Answer:  
The relevant representatives of the interested bo dies have participated in different Codex 
meetings, particularly, in annual meetings of Codex Commission, FAO/WHO Coordinating 
Committee, in several Codex meetings on food import and export inspectorial, certification 
system.  During the last 3 years Armenia has also participated in the different workshops 
organized by IPPC, EPPO, OIE. 
Page 38, Paragraph 88 
22. What has been Armenia's participation in mee tings organised by Codex, IPPC and OIE where 
standards are drafted? 
Answer:  
The representatives of the interested bodies a re engaged in different e-working groups in 
CODEX.  Armenia has its national contact point and it is planned to establish National Committee of CODEX.  WT/TPR/M/228/Add.1 
 Page 29 
 
 
  Page 38, Table III.4 
In table III.4 on page 38 it is indicated that the Mi nistry of Health is responsible for sanitary norms 
and hygiene rules, while the Ministry of Agricultu re is responsible for implementation of the state 
control over food safety issues. 
23. Could Armenia explain in detail what is the relationship and co-ordination between these two 
ministries? 
Answer:  
According to the Government Decree No. 557-N on  5 June 2008 the Ministry of Agriculture is 
recognize as a foot state surveillance body, and the Ministry of Health is responsible for the 
conformity of sanitary and hygienic norms of the buildings, means of transportation used for 
food production and crossover procedures. 
The both Ministries are cooperating in exchangi ng information, organizing checking visits, and 
other functions shouldered on them within the legislation. 
Page 38, Paragraph 89 
24. What is the basis for Armenia imposing an im port regime where all imported food must be 
sampled and tested before  importation is permitted? 
Answer:  
On 19 October 2004 the government of RA adopte d the decree on state veterinary control 
during international and inter-state transportation of veterinary consignment for animal origin food an there is law on phytosanitary and also decree No. 1093 on 30 October 2007 in the for plant origin. 
Page 39,  Paragraph 91 
25. Could Armenia explain in more details impor t requirements for imports of live animals, 
products of animal origin and feed as well as whether import permission regime is currently 
applied in line with these imports? 
Answer:
 
The import of animals, products of animal origin and feed and etc. to the territory of Armenia is 
arranged in accordance with th e requirements of the each produc t.  It is allowed to import 
Armenia only healthy animals, meat and meat food  which is produced from slaughter of healthy 
animals and reprocessed in the enterprises that  have export permission and are under the 
control by the central veterinary services of the exporting country.  The loads are examined, the 
required documentation is checked and laboratory examination is arranged.  
Page 39,  Paragraph  92 
26. What is the current status of the construc tion of the three combined border inspection 
checkpoints? WT/TPR/M/228/Add.1 
Page 30  
 
  Answer:
 
Currently construction of Bavra inspection checkpoin t is completed, but there is still some work 
to be done, that is why the stuff has not moved yet. 
Inspection checkpoint in Bagratashen is exploited partially, but there is also some work to must 
to be completed. 
The construction of Agarak inspect ion checkpoint is not completed. 
The mentioned above construction of the inspection checkpoint buildings were carried out 
through the financing support of international organizations. 
27. Under which requirements are they intended to be constructed:  Armenian, EU or other? 
Answer:  
In the framework of European Neighbourhood  Policy EU-Armenia Action Plan we agreed 
measure for construction border inspection check points. 
Page 39, Paragraph 93 
34.  What steps is Armenia taking in order to enhance its administrative capacity for 
compliance with transparency oblig ations under the SPS Agreement? 
Answer:  
Aimed to fulfil the transparency under the SPS Agreement, Armenia is currently being 
developed efficient methods to ensure an effect ive notification system, to develop continuous 
cooperation between the SPS enquiry points in Armenia and Notification Authority. 
V. OTHER MEASURES AFFECTING INVESTMENT AND TRADE 
(1) B USINESS FRAMEWORK AND FOREIGN INVESTMENT REGIME  
(i) General legal framework for businesses 
Page 45, Paragraph 9, Footnote 7 
With regard to the treaties for avoidance of doubl e taxation signed by Armenia, we would like to 
recall that the Double Taxation Treaty concluded between Germany and the then USSR remains 
applicable with respect to Armenia. 
(ii) Foreign investment regime 
Page 45, Paragraph 14 
28. Could Armenia confirm that the power to limit and prohibit foreign investment on the basis of 
national security concerns has never be en used over the described period? 
Answer:  
According to the Law on Foreign Investments, foreign investors are entitled to conduct any 
activity in any sector not prohibited in Armeni a.  For activities subject to licensing, foreign 
investors shall obtain required license s pursuant to the Law on Licensing.  WT/TPR/M/228/Add.1 
 Page 31 
 
 
  For national security reasons (Article 6 of the RoA Law on Foreign Investments), the legislation 
of the Republic of Armenia may define specific locations within the territory of Armenia, wherein the activities of foreign investors and ente rprises with foreign investment are limited or 
prohibited.  
However, the power to limit and prohibit forei gn investment was not used during the review 
period. 
Page 45, Paragraph 15 
29. Has the situation mentioned in paragraph 15 of the Secretariat's Report that a foreign investor 
requested application of former more favourable legislation ever occurred?  If so, how has the 
Armenian government proceeded? 
Answer:
 
The Law on foreign Investments guaranties that , in the event of the amendments to the 
legislation on foreign investments, the law in force at the time the investment was made can, 
upon the request of a foreign investor, continue to  be applied for a maximum of five years from 
the date of the investor.  The foreign investor has a right to request application of former more 
favourable legislation.  The foreign investor need  to submit the application to the State Revenue 
Committee for more favourable legislation. 
(2) S TATE TRADING , STATE -OWNED ENTERPRISES , AND PRIVATIZATION  
Page 46, Paragraph 19 
30. When privatisation of state-owned enterprises o ccurs, is participation of foreign investors 
allowed and are they treated similarly to national investors? 
Answer:  
Both national and foreign investors are treated sim ilarly;  both have the same rights to obtain 
shares of privatized companies and other state property, which offers for privatization. 
(6)  I NTELLECTUAL PROPERTY RIGHTS  
(iii)  Enforcement 
Page 55, Paragraph 64 
31. Could Armenia outline how it plans to strengthen its IPR enforcement? 
Answer:  
For strengthening IPR enforcement following meas ures have been initiated and others are in 
the process to be launched in the coming mont hs by the Government and the Ministry of 
Economy. 
• Establishment of an Interagency Commi ssion on IPR enforcement by the Prime 
Minister in August 2009 and adoption of a "Policy Paper on Implementing Reliable and Effective Protection of IP" by the Government in April 2009. 
• The Ministry is elaborating a survey on co unterfeiting and piracy in cooperation with 
EU AG and AEPLAC.  The Parliament is forese en to adopt ad hoc legislation based on WT/TPR/M/228/Add.1 
Page 32  
 
  the EU Enforcement Directive 2004/48/EC and EU Customs Regulation on IPR 
(including a follow-up of any update on the current EU enforcement aquis ). 
• The preparatory work of the Ministry is geared to EU harmonized Trademarks and 
GI/DO legislations to be under adoption, an d it is foreseen to update the patent and 
designs legislation in the upcoming months. 
• The Ministry is preparing the first IPR aw areness workshop (April 2010) in cooperation 
with the Armenian Chamber of Commerce and Industry, EU AG and AEPLAC.  At 
least two additional IPR workshops will take place during 2010:  official presentation of the result of the on-going IP counterfeiting and piracy survey, and a workshop targeting 
Armenian IP Agents. 
• The use of EU instruments (e.g., Twinnings, TAEIX and SIGMA) aiming at 
strengthening of institutional capacity building is under study. 
The Government of Armenia is well aware th at fostering innovation and creativity improves 
competitiveness and will ensure a full integration of  Armenia into the world economy.  Thus, the 
Ministry of Economy is committed to achieving tangible progress in the implementation of the relevant PCA and ENP Action Plan's provisions aiming at significantly improving the implementation and enforcement of the existing IPR legislation and aligning IPR legislation 
with the EU acquis ;  the functioning of the judicial system;  and creating the conditions for an 
effective dialogue with right holders. 
Effective Customs control over the importation of counterfeit or pirated goods needs to be 
developed.  This will require the setting up of a specific function within the Customs service, the 
development of the necessary administrative capacity through extensive training, and the 
development of effective relationships between Customs and property rights holders.  
VI. TRADE POLICIES BY SECTOR 
(3) E
NERGY  
(iii) Gas Page 65, Paragraph 36 
32. Who has constructed the 720 mm natural gas pipeline between Iran and Armenia? 
Answer:
 
Construction of 40 km Meghri-Qajaran part of  Iran-Armenia pipeline was implemented in the 
territory of the Republic of Armenia according to Contract signed between "High Voltage Networks" CJSC of RA (Project Implementing  Company or Employer) and "Sunir" Company 
of IRI (Contractor) under the framework of the Agreement signed between the Ministry of Energy of RA and Export Development Bank of Ir an for financing of the mentioned works. 
33. Has ArmRosGasprom CJSC (ARG) acquired the pipeline and were there any other bidders? 
Answer:
 
Construction of about 200 km Qajaran-Ararat part of Iran-Armenia pipeline was implemented 
in the territory of the Republic of Armenia by "ArmRosGasprom" CJSC within the framework of investment projects and was financed by "Gasprom" OJSC. 
34. What was the procedure used in the acquisition of this pipeline?  WT/TPR/M/228/Add.1 
 Page 33 
 
 
  Answer:  
Acquisition of this pipeline by "ArmRosGas prom" is now carrying in accordance with RA 
legislation.  
(4) S ERVICES  
Page 66 
35. To what extend do reforms and legislation in some of the key services sectors described (e.g. 
telecommunications, postal and courier services, tr ansport, financial services) modelled on the 
EU acquis? 
Answer:  
The concept of the development of Electronic Co mmunication Sector has to be presented to the 
Government of the Republic of Armenia for adoption at the end of 2010.  The adoption of the 
above mentioned concept will allow predefining the further progress.  The legislation and reforms on the telecommunication sector are being harmonized with the European Union principles. 
(vi) Tourism 
Page 82, Paragraph 123 
36. Have concrete steps been undertaken to encourage investment in the tourist sector on the 
basis of the programmes mentioned in paragraph 123 of the Secretariat's report? 
Answer:
 
As described in the Secretariat report (paragrap h 123) the RA Government policy on foreign 
investment is quite favourable for attracting in vestments into tourism sector, alongside other 
industries.  This applies not only to the legislation as a whole, but also to the programs the 
Government implements in the sphere of tourism.  The Strategy of Development of Jermuk for 
2009-2012 , the Plan of Actions Deriving from the Concept of Tourism Development  and the 
"Tatev" Tourist Centre Development Project  are some of the public projects, which, alongside 
other objectives, through public sector involvement  aim at encouraging and attracting foreign 
and private investments into the Armenian tourism industry. 
QUESTIONS FROM INDIA  
1. Continued efforts to improve  implementation of institutional and regulatory reforms and to 
develop a more diversified economy are key to Arme nia's future economic growth (Para 2, Summary 
Observations of the Secretariat Report. 
Q.1 We would appreciate to hear from Armeni a its detailed and concrete plans to realise its 
aim towards a more diversified economy. 
Answer:  
Nowadays Armenia is at a rather low level of deve lopment, still at the stage of resource based 
growth.  The main objective of the economic development strategy of the Government of 
Armenia is the increase of the country's global competitiveness level. WT/TPR/M/228/Add.1 
Page 34  
 
  In particular the following mid-term and long-term objectives are set forth: 
• In midterm perspective transition from a resource based development stage 
(classification of the world economic forum)  onto investment based development stage, 
during which resources must be attracted to apply modern, energy saving technologies, which will allow a diversified production. 
• In a long term perspective, transition to knowledge based development stage ensuring 
the availability of commercialized inventions and innovative technologies, and competitive new products in developed markets. 
2. Agriculture grew less rapidly than other sect ors and its share of the economy fell to 18% in 
2008, although it still employed almost half of the workforce. (Para 6, Summary Observations of the 
Secretariat Report) 
3. Significant foreign investment in agricultur e is unlikely given the Constitutional prohibition 
on land ownership for non-Armenian citizens. (Par a 34, Summary Observations of the Secretariat 
Report) 
4. Armenia is a net food-importing country with  most imports coming from Russia. (Para 35, 
Summary Observations of the Secretariat Report) 
Q.2 What are Armenia's long term plans to increase the share of agriculture in the GDP 
which appears to be important given the large workforce employed in this sector? 
Answer:
 
Our economic strategy means that the developmen t of high value added industrial sector and 
industrialization of agricultural sector.  We are planning to support development of IT, 
Industry, Tourism, Mining sectors in Armenia wh ich will create an opportunity to increase the 
number of new jobs. 
Q.3 Does Armenia have plans to attract FD I by liberalising its current Constitutional 
prohibition on land ownership in the agriculture sector? 
Answer:  
The only exception is set by the Constitution, which denies foreign citizens and persons without 
citizenship the right to own land in Armenia.  However, foreigners are allowed to use land 
through lease contracts with an Armenian counterpart. 
According to the Article 11 paragraph 4 of RoA Law on Joint Stock Companies "Foreign 
persons/entities may found companies and participate in them on the same grounds as Armenian 
citizens and legal entities".  According to our legislation the foreign companies or corporate 
entities can own buildings and land for the purpose of operating in Armenia. 
Q.4 Does Armenia plans to diversify its food im ports and also whether it proposes to seek 
food self-sufficiency by further developing its agriculture sector? 
Answer:  
In our long term economic strategy there are no specific objectives such as diversification of 
food imports and reaching food self-sufficiency.  WT/TPR/M/228/Add.1 
 Page 35 
 
 
  5. Customs clearance is still perceived by users as relatively slow and subject to a certain 
amount of corruption. (Para 16, Summary Observations of the Secretariat Report) 
6. Despite improvements during the review peri od, there remain some concerns about the 
efficiency and transparency of the application of  the legislation on customs valuation. (Para 17, 
Summary Observations of the Secretariat Report) 
Q.5 We would like Armenia to share with us its time-bound plans in further improving the 
efficiency and transparency of its customs clea rance, application of legislation on customs 
valuation. 
Answer:  
The GoA has identified the following main a reas as requiring attention in the process of 
preparing for a Deep and Comprehensive Free Trade Agreement.  In three of these – Customs 
Value, Simplified Procedures, and Legal Fram ework – reforms are already being undertaken. 
Whilst the existing legal provisions governing customs valuation have passed WTO scrutiny, 
Customs' current reliance on reference prices and/ or requests for information from other 
Customs administrations as its principal means for determining the value of imported goods is 
insufficient.  In order to meet international st andards of good practice, Customs will develop 
and employ a range of post-clearance audit checks , at traders' premises, designed to examine all 
of the various records and systems that contain information relating to the value of import 
consignments.  This approach will observe the spirit of the WTO Valuation Agreement and 
provide a basis for objective assessment.  Adop ting – and making public – an audit-based 
approach to customs valuation will also help to  reduce suspicion amongst some sectors of the 
business community that the current system is se t up to promote bargaining over the value that 
is eventually accepted for customs purposes. 
The process of developing and introducing ri sk-based frontier and post-clearance controls, 
which are essential trade facilitation measures, is  underway.  Attention is also being paid to 
developing more effective arrang ements for coordination and sharing of information between 
Customs and other border control agencies, and to the rationalisation and simplification of 
border controls.  In the long er term, the approval of simplif ied procedures for compliant 
traders will also be introduced, with a view to establishing a platform for the longer-term 
development of an Authorised Economic Operator (AEO) scheme, along EU lines. 
Measures will also be taken, in the longer term , to abolish the Customs administrative fees 
which have an equivalent effect to import duties. 
Effective Customs control over the importation of counterfeit or pirated goods needs to be 
developed.  This will require the setting up of a specific function within the Customs service, the 
development of the necessary administrative capacity through extensive training, and the 
development of effective relationships between Customs and property rights holders. 
The body of Customs legislation requires a f undamental review to ensure DCFTA compliance. 
To improve the efficiency and transparency of it s customs clearance, application of legislation 
on customs valuation Armenia is going to implement the following measures: WT/TPR/M/228/Add.1 
Page 36  
 
  Simplify the procedure for determination of customs value through the transaction value method, as a result 
of modernization of the post-clearance control function 
Ensure transparency and publicity of customs proced ures through the State Re venue Committee website.  
Publish handbooks explaining the information regarding the customs procedures, customs value, manuals and 
guidelines 
Update the Customs legislation to bring into conformity with international standards 
Establish a performance appraisa l system for Customs officers 
Foreign training for customs staff in higher customs schools of other countries 
Obtain different educational programs on all customs service areas, to make the trainings more effective 
Improve the material security of the customs staff (enhanced security while being on duty, staff insurance) 
Develop and manage a rotation system for the customs staff 
Create information formation and collection database in the risk management system 
Create a system for monitoring, control,  risk elimination or risk reduction in the system of risk management 
Ensure the necessary legal bases for submission of electronic documents, verified by an e-signature 
Introduce an electronic payment system 
Analyze the possibility of producing th e bill of landing before arrival of cargo at the customs checkpoint and 
associated needs 
Introduce the "one stop shop" / "single window" principle 
Introduce the institute of "Compliant Economic Entities" 
Introduce the institute of "Authorized Economic Entities" 
Introduce an advance payment and bank guarantee scheme for imported goods and goods in transit 
Introduce special software to allow the permanent m onitoring of clearance time and reducing excess time 
Establish a joint consulting centre to provide technical assistance for economic entities on customs 
procedures and IT 
Bring the list and contents of documents produced by foreign traders to the customs bodies into conformity with international standards 
Introduce a unified electronic management system for exchange of information between customs houses and 
customs warehouses 
Conclude intergovernmental agreements on mutual a ssistance in customs matters with other governments 
Accede the revised Kyoto Convention 
Cooperate with Georgia with respect to establishing a joint border customs station between RoA and Georgia 
Develop a unified information database between differ ent government entities with a view to increasing the 
efficiency of the border control 
Refurbishment of Customs Administration Anti-Smuggling units with modern equipment and devices 
Establish premises for inspection and storage of customs goods 
Establish container platforms at all border customs checkpoints and customs warehouses 
Install scanners to examine vehicles, X-rays, equipmen t for detecting radioactive or ozone layer depleting 
substances, and electronic scales at border customs checkpoints and customs warehouses 
Establish customs laboratories for classification and expert examination of risk-prone goods and development 
of respective legal acts 
(cont'd)   WT/TPR/M/228/Add.1 
 Page 37 
 
 
  Introduce a vehicles control system which will establish control over the vehicles moving across the area of 
the country 
Obtain technical means to raise the e ffectiveness of Post-clearance control 
Develop post-clearance control procedures 
Training for specialists dealing with Post-clearance audit function 
7. The transport sector in Armenia is relatively well developed but in need of significant funds 
to maintain and upgrade existing routes and to build  new ones.  Infrastructure remains state-owned. 
(Para 42, Summary Observations of the Secretariat Report) 
Q.6 We would appreciate if Armenia could share with us its plans on attracting FDI in 
further improving its transport sector as well as its plans to dilute the state-ownership of the 
infrastructure. 
Answer:  
The government has initiated an implementation of several large scale infrastructure programs, 
which refer to road, telecommunication, energy, i ndustrial, social and other infrastructures.  
These projects that are mainly directed toward s ensuring growth and development in the 
post-crisis period, however, having high anti -cycle effectiveness, become especially urgent 
nowadays, and can significantly contribute to retaining of employment levels and economic 
growth.  Among them, the main ones are: 
• reconstruction of the earthquake zone; 
• construction of the north-south transport corridor; 
• Yerevan municipal transport project; 
• rural roads renovation and irrigation network development projects; 
• new nuclear plant construction project;  
• the project of transforming Gyumri into Technocity, etc. 
These long-term development projects have been designed before the crisis and are of regional 
significance.  It is planned to implement th e above mentioned projects in cooperation with 
international bodies and private sector by applyi ng public-private partnership (PPP) principles. 
Within the framework of earthquake zone reco nstruction project, it is planned to build 
2,836 apartments and service centres in Gy umri, Akhuryan village and Spitak (2,300 + 182 
+ 354), as well as construction of 2100 dwelling houses and service centres in 34 rural areas of 
Shirak and Lori marzes.  The construction works have already been launched.  Investment of 
dram 24 billion  is anticipated to make  in 2009 and dram 52 billion in 2010. 
The planning and design works of North-South transport corridor construction have already 
commenced, where the part of motor road will be  constructed on the account of US$1 million 
grant from ADB.  The first phase of the project w ill be mainly financed with credit resources 
provided by ADB. 
In particular, an agreement has been reached on financing of a US$500 million worth program, 
which is already signed between ADB and GoA. WT/TPR/M/228/Add.1 
Page 38  
 
  The possibilities of co-financing the project ar e also being discussed with WB and other 
organizations;  the participation of the private sector is also anticipated. 
In addition to the motor road part of the No rth–South transport corridor, the project also 
incorporates a railroad component.  This mainly  concerns the project of Iran-Armenia railroad 
construction.  The railroad construction proj ect's development works are carried out with 
support of the Government, ADB, as well as by  benefactors from Ar menian Diaspora.  A 
number of options for the project are already avai lable, and are currently under discussion.  In 
order to realize the construction works, Armeni a has started cooperating with Iran and Russia.  
On the account of a grant received from ADB, a survey, necessary for the implementation of 
"Yerevan Municipal Transport stability" project, will be completed by the end of the year, 
which will enable launching a road constructi on project of merely US$300 million in 2010 or 
2011 (financed by the ADB). 
8. High flight costs and limited schedules, as well as high taxes on passengers and 
underdeveloped infrastructure appear to be hampering tourism growth. (Para 45, Summary 
Observations of the Secretariat Report) 
Q.7 Does Armenia have an ongoing comprehensive plan to further improving its tourism 
sector as it appears to have a good potential fo r attracting tourists from abroad as well as 
increase in employment avenues in the country? 
Answer:
 
In February 2008 the Armenian Government ad opted the Concept of Tourism Development, 
which is the main reference document of the Go vernment through the implementation of the 
state policy in the sphere of tourism.  The Con cept features analysis of the industry situation, 
SWOT analysis of Armenian tourist resources, description of the main principles and objectives of the state policy in the sphere of tourism, as well as reflects the vision of the Government of the RA on the development of tourism through 2030. 
On the basis of the objectives and principl es described in the Concept, later in 2008 the 
Government approved of the plan of Action s Deriving from the Concept of Tourism 
Development for the years 2008-2012.  This is the action plan aimed at objectives described in 
the Concept Paper and namely at development of  transport and accommodation infrastructures 
and tourist services, development of new Armeni an tourist products, improvement of tourism 
related legislation and statistics, attraction of low-cost airlines into Armenian market and the 
like. 
Other projects currently implemented are the Strategy of Development of Jermuk for 2009-2012  
and "Tatev" Tourist Centre Development Project.  
QUESTIONS FROM JAPAN 
The Secretariat Report (WT/TPR/S/228) III.  MEASURES AFFECTING MARKET ACCESS FOR GOODS 
(4) Tariffs 
(i) MFN applied tariff 
(Question 1:  page 27, paragraph 27) 
The Secretariat's report states that the Non- ad valorem  import tariffs apply to 29 lines covering 
alcoholic beverages and tobacco products, and th at these tariffs are calculated based on the 
corresponding VAT and excise tax and collected from the importer in a single payment.  WT/TPR/M/228/Add.1 
 Page 39 
 
 
  Please elaborate on this tariffs scheme, and explain how the calculation for these tariffs is done, 
including the corresponding VAT and excise tax. 
(Question 2:  page 27, paragraph 27) 
According to the Secretariat's report, it is not possible to estimate ad valorem  equivalents for the 
import tariff for these non- ad valorem  tariffs.  Yet it seems that it would be possible for the Armenian 
authority to calculate each amount of import tari ffs, VAT, and excise tax, and then calculate the 
AVEs.  Please indicate the reason why the Armenian authority cannot calculate AVEs. 
(Question 3:  page 27, paragraph 27) 
According to the Secretariat's report, as part of the Armenian Government's fiscal reform strategy, it is 
planned that all specific duties will be substituted in January 2011 by ad valorem  rates. 
Please provide, if possible, the detailed timeline for this revision and information on its planned tariff 
rates. 
(ii) Tariff bindings (Question 4:  page 29, paragraph 34) 
The Secretariat's report states that 'With the excep tion of the 29 tariff lines for which applied AVEs 
could not be calculated, all other applied tariffs  are below their corresponding bound levels.' Please 
clarify whether or not the applied tariff rates fo r these 29 tariff lines exceed the corresponding bound 
tariff rates.  If it is the case, please elaborate on the current situation for each of these tariff lines. 
Answer:
 
Government of Armenia intends to abolish all kinds of specific/non- ad valorem  tariffs and 
introduce ad valorem  rates as a key principle of tax policy. 
By the Decree of Prime Minister a specific workin g group, chaired by the Minister of Finance, 
has been formulated to address the issue.  Part icularly working group drafting the appropriate 
legislation on excise tax for wine and spirits and cigarettes. 
The draft law amendments will be submitted to th e Government consideration in coming weeks. 
In addition Government has commitment to ad dress these issues by 2011 in the framework of 
cooperation with IMF. 
QUESTIONS FROM UKRAINE 
Regarding the Trade Policy Review Report by Armenia and Trade policy Review Report by the 
Secretariat (Armenia) Ukraine is glad to use an opportunity to welcome the efforts of Armenia aimed 
at improving legislation regarding implementa tion of WTO Agreements  and its obligations. 
At the same time, the Ukrainian side would li ke to express its concerns over the continuing 
infringements of intellectual property rights of it's trademark owners i.e., unauthorized use of trade 
marks and use of the identical or similar sighs for goods or service wh ich are identical or similar to 
trade marks of Ukrainian producers of  alcohol beverages in Armenia. 
As of early 2010 the identical and similar signs had been used for the alcohol beverages TM 
Khortytsya, TM "Bilenka", TM "Nemiroff", TM "Prime", TM "Medoff ", TM" Ukrainka " in 
Armenia, the TM "Presidentskij standart" and "Khlibny j dar" have been used with no changes in the 
title and decoration labels. WT/TPR/M/228/Add.1 
Page 40  
 
  Thus, Ukraine asks for clarification, how the follo wing practice corresponds with the obligations of 
the Article 16.1 of the TRIPS Agreement and enc ourages Armenian authorities to outline how it plans 
to strengthen its IPR enforcement. 
Answer:
 
The generally our legislation in compliance with TRIPS agreement.  However our major 
concerns are related with problematic implementation and week enforcement. 
The legislation needs: 
• to grant ex-officio action rights to po lice, prosecutors, and Customs (Custom IPR 
register does not contain any registrations si nce criteria for registration seem to be too 
cumbersome, and procedures establishing fo r the storage and destruction of seized 
goods must be established), 
• to ensure better access to justice regarding IP R disputes, as well as strengthen capacity 
of institutional bodies. 
Ukraine asks for clarification of the application by Armenia of the fixed payment on tobacco 
products. 
In our view, the amount of an import customs duty, included in the fixed payment, exceeds Armenia's 
bound tariff on tobacco products. 
Besides, it seems that another component of the fixed payment – an excise duty – is applied in a 
discriminatory manner against imported tobacco products. 
In particular, according to the Law of the Repub lic of Armenia "On Fixed Payments on Tobacco 
Products", the fixed payment on imported tobacco products amounts to 6.5 00 Drams/1000 cigarettes 
and consists of import customs duty, excise duty an d VAT.  At the same time, the fixed payment on 
domestically produced tobacco products amounts to 4.500 Drams/1000 cigare ttes and consists of 
excise duty and VAT. 
One can conclude that the difference between thes e two payments – 1.750 Drams/1000 cigarettes – is 
the import customs duty on tobacco products.  This difference amounts to 36,84% of the fixed payment on domestic tobacco products and exceed s Armenia's 15% bound tariff on tobacco products. 
Thus, in our view, this is inc onsistent with the provisions of  Article II:1(b) of the GATT-1994. 
Besides, according to the Law 76,5% deducted fr om the fixed payment on  imported products is 
deemed to be an excise duty.  On the other hand, the excise duty on domestic products amounts to 
80% of the fixed payment on domesti cally produced tobacco products. 
At the same time, the actual amount paid for impor ted tobacco products exceeds the amount paid for 
domestic products by 1.172,5 Drams/1000 cigarettes. 
In our view, this violates the provisions of Article III:2 GATT-1994. 
We request Armenia to bring the existing taxation syst em applied to tobacco products in line with the 
GATT-1994 provisions and the country's obliga tions undertaken upon accession to the WTO.  WT/TPR/M/228/Add.1 
 Page 41 
 
 
  Answer:  
Government of Armenia intends to abolish all kinds of specific/non- ad valorem  tariffs and 
introduce ad valorem  rates as a key principle of tax policy. 
By the Decree of Prime Minister a specific workin g group, chaired by the Minister of Finance, 
has been formulated to address the issue.  Pa rticularly, mentioned working group drafting the 
appropriate legislation on excise tax for wine and spirits and cigarettes. 
The draft law amendments will be submitted to th e Government consideration in coming weeks. 
In addition Government has commitment to ad dress these issues by 2011 in the framework of 
cooperation with IMF. 
QUESTIONS FROM THE UNITED STATES 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 
(4) M AIN TRADE AGREEMENTS AND OBJECTIVES  
(i) World Trade Organization 
Page 17, paragraph 27:   The Secretariat notes that, "despite being ranked 43rd out of 183 countries in 
the World Bank's Ease of Doing Business Index, Armenia's performance varied considerably from 
one category to another, for example, it was ranked 5th for registering property and 153rd for paying 
taxes."  What steps is Armenia taking to simplif y its taxation regimes to facilitate doing business? 
Answer:  
Amendments were made to the Armenian tax laws in 2009. A 'soft' tax administration has been created for small businesses (legislative packages were 
adopted by the Parliament in 21.08.08 and 26.12.08). 
• starting from January 1
st, 2009 the law on simplified tax was no longer in force.  A 
turnover threshold of dram 58,35 million as non-VAT taxable has been adopted.  It means that, if turnover from supplying goods, providing services, gratuitous (partly) consumption does not exceed dram 58,35 millio n in the previous year, the taxpayer will 
not pay VAT during the current year, 
• lower administrative burden was created for the filing of tax returns (e.g. the employers, 
having up to 5 employees, present quarterly returns on social contribution payments;  
the taxpayers having up to dram 100 m illion turnover on VAT, are presenting quarterly 
returns) (previously these returns were presented on monthly basis), 
• the taxpayers having up to dram 58.35 m illion turnover (non-VAT payers) calculate 
their profit and income taxes on general terms and present simplified returns on profit and income tax once in a year, 
• it was stated that, non-VAT payers don't need to administer delivery and revenue books 
adopted by the government (N 314, N 315 government decrees), 
• the law on patent payments has been adopted, which states the types of activities for 
patent payers, as well as the annual payment fee.   The law also states that patent payers 
are those taxpayers whose annual turnover fr om stated types of activities does not WT/TPR/M/228/Add.1 
Page 42  
 
  exceed dram 2,5 million.  The purpose is to develop simple administration for the 
self-employed dealing with certain types of activities, 
• the monthly minimum wage will increase from dram 25,000 to dram 30,000. 
The following reforms are planned to  be implemented in tax laws:  
• Unify tax reports. 
• Introduce and develop system of representation  of tax declarations via electronic means. 
• Based on a study, develop and submit legislation on procedures for disclosure of the 
names of the delinquent taxpayers. 
• Based on the actual performance indicators,  develop the system of the assessment of 
performance of the tax inspectorates and structural units. 
• Prepare conditions for operation of th e risk-based audit of the taxpayers. 
• Concept on establishment of new mechanisms for provision of information, 
clarifications and commentaries on application of customs and tax legislation. 
• Concept of creating institute of tax intermediaries. 
• Making legislative changes on prescribing targeted severe sanctions for senior state 
officials engaging in business activities. 
• Further straightening of the program of Larg e Taxpayers Inspectorate (it is planned to 
cooperate with specialists of The Nederland's Tax service).   
• Establishment of taxpayers' service centres in tax inspectorates. 
(ii) European Union 
Page 21, paragraph 42
:  The Secretariat notes that, "Implementation of the ENP Action Plans are 
intended, inter alia , to assist development in Armenia, and the other countries of the South Caucuses 
(Azerbaijan and Georgia), so that they can ne gotiate, implement, and sustain a deep and 
comprehensive free-trade area with the EU.  What is the status of Armenia's implementation of its Action plan and Country Strategy plan?  What progress has Armenia made toward establishing a 
free-trade area with the EU? 
Answer:
 
The objective of the ENP is to share the EU's stability, security and prosperity with 
neighbouring countries, including Armenia. 
Armenia and the EU first established contractua l relations in 1996 through a Partnership and 
Cooperation Agreement which ente red into force in 1999.  On this  basis, the EU-Armenia ENP 
Action Plan was adopted in November 2006 for a period of five years. 
The first progress report was adopted by the EC  in April 2008 and the second was approved in 
April 2009.  WT/TPR/M/228/Add.1 
 Page 43 
 
 
  Overall, Armenia made progress in  several areas of the ENP Action Plan.  Progress was made 
in particular on tax and customs reforms, financial services and competition policy.  Armenia also entered into a new IMF-supported Poverty Reduction and Growth Facility which aims to 
enhance Armenia's macroeconomic stability and economic performance.  Important steps were 
taken in improving transparency of the govern ment's decision-making process and cooperation 
with NGOs and civil society.  Armenia also t ook steps to strengthen the Human Rights Defender 
by increasing its range of activity and independence.  Armenia made progress in regional cooperation and dialogue with neighbouring countries, in particular with Turkey. 
The Country Strategy Paper 2007-2013 (CSP) for Ar menia sets out the overall objectives of EU 
assistance, encompassing all its instruments a nd programmes.  Based on the CSP, a National 
Indicative Programme for the ENPI was ad opted for the period 2007-2010 and is being 
successfully implemented.  The mid-term review of the CSP confirmed the validity of the strategic priorities of EU assistance to Armenia until 2013.  On this basis, a new National Indicative Programme (NIP) covering the period 2011-2013 was drafted by the Commission. 
On 2 March 2010, the European Commission based on bilateral negotiations with Republic of 
Armenia adopted the National Indicative Pr ogramme 2011-2013 for Armenia, which foresees an 
indicative allocation of €157.3 million from the European Partnership and Neighbourhood 
Instrument.  This includes a minimum of €32 million earmarked for the Comprehensive 
Institution Building programme and a minimum of  €7 million reserved for the Cohesion Policy.  
The assistance will focus on three priority areas – democratic structures and good governance;  
trade and investment, regulatory alignmen t and reform;  socio-economic reform and 
sustainable development. 
The Government of Armenia has taken several me asures for the preparation of a Deep and 
Comprehensive Free Trade Agreement negotiation process.  Particularly, the administrative 
structure ensuring the negotiation process for a DCFTA was approved by the Prime Minister's 
Decision.  According to the Decision the RA Mini ster of Economy was appointed as the Political 
Coordinator of the process.  He also lead s the Inter-agency Committee where the Deputy 
Ministers and Deputy Heads from the Ministries and Agencies involved in the DCFTA process are represented. 
The Chief Negotiator and the Technical Coordinator were recently appointed.  During the first 
meeting of the Inter-agency Committee the working groups on TBT and SPS issues were formally established. 
The above-mentioned working groups have alread y held several meetings in order to address 
the relevant issues mentioned in the Report of  the EC fact-finding mission to Armenia in 
February 2009. 
III. MEASURES AFFECTING MARKET ACCESS FOR GOODS 
(1) C
USTOMS PROCEDURES  
Page 24, paragraph 7:   How does Armenia Customs determine whether a shipment should pass 
through the green, yellow, or red channel at the border?  Are shipments selected at random? 
Answer:  
Goods imported into customs territory of the Republic of Armenia are determined by Trade 
World Manager (TWM) software.  Green, yellow or red channels are selected by a random 
principle. WT/TPR/M/228/Add.1 
Page 44  
 
  (2) C
USTOMS VALUATION  
Page 24, Paragraph 10:   According to the Secretariat, "In 2009, the number of documents that must 
be presented at customs clearance was reduced to th ree:  custom declaration;  invoice;  and the 
contract for international carriage of goods by road ..."  What further measures is Armenia considering 
to simplify and expedite customs procedures in  addition to reducing the number of documents 
necessary to be presented for customs clearance? 
Answer:  
The GoA has identified the following main a reas as requiring attention in the process of 
preparing for a Deep and Comprehensive Free Trade Agreement.  In three of these – Customs Value, Simplified Procedures, and Legal Fram ework – reforms are already being undertaken. 
Whilst the existing legal provisions governing customs valuation have passed WTO scrutiny, 
Customs' current reliance on reference prices and/or requests for information from other Customs administrations as its principal means for determining the value of imported goods is 
insufficient.  In order to meet international st andards of good practice, Customs will develop 
and employ a range of post-clearance audit checks , at traders' premises, designed to examine all 
of the various records and systems that contain information relating to the value of import 
consignments.  This approach will observe the spirit of the WTO Valuation Agreement and 
provide a basis for objective assessment.  Adop ting – and making public – an audit-based 
approach to customs valuation will also help to  reduce suspicion amongst some sectors of the 
business community that the current system is se t up to promote bargaining over the value that 
is eventually accepted for customs purposes. 
The process of developing and introducing ri sk-based frontier and post-clearance controls, 
which are essential trade facilitation measures, is  underway.  Attention is also being paid to 
developing more effective arrang ements for coordination and sharing of information between 
Customs and other border control agencies, and to the rationalisation and simplification of 
border controls.  In the long er term, the approval of simplif ied procedures for compliant 
traders will also be introduced, with a view to establishing a platform for the longer-term 
development of an Authorised Economic Operator (AEO) scheme, along EU lines. 
Measures will also be taken, in the longer term , to abolish the Customs administrative fees 
which have an equivalent effect to import duties. 
Effective Customs control over the importation of counterfeit or pirated goods needs to be 
developed.  This will require the setting up of a specific function within the Customs service, the 
development of the necessary administrative capacity through extensive training, and the 
development of effective relationships between Customs and property rights holders. 
The body of Customs legislation requires a f undamental review to ensure DCFTA compliance. 
To simplify and expedite customs procedures in addition to reducing the number of documents 
necessary to be presented for customs clearanc e, Armenia ensure the implementation of the 
following measures:  WT/TPR/M/228/Add.1 
 Page 45 
 
 
  Simplify the procedure for determination of customs value through the transaction value method, as a result 
of modernization of the post-clearance control function 
Ensure transparency and publicity of customs proced ures through the State Re venue Committee website.  
Publish handbooks explaining the information regarding the customs procedures, customs value, manuals and guidelines 
Update the Customs legislation to bring into conformity with international standards 
Establish a performance appraisa l system for Customs officers 
Foreign training for customs staff in higher customs schools of other countries 
Obtain different educational programs on all customs service areas, to make the trainings more effective 
Improve the material security of the customs staff (enhanced security while being on duty, staff insurance) 
Develop and manage a rotation system for the customs staff 
Create information formation and collection database in the risk management system 
Create a system for monitoring, control,  risk elimination or risk reduction in the system of risk management 
Ensure the necessary legal bases for submission of electronic documents, verified by an e-signature 
Introduce an electronic payment system 
Analyze the possibility of producing th e bill of landing before arrival of cargo at the customs checkpoint and 
associated needs 
Introduce the "one stop shop" / "single window" principle 
Introduce the institute of "Compliant Economic Entities" 
Introduce the institute of "Authorized Economic Entities" 
Introduce an advance payment and bank guarantee scheme for imported goods and goods in transit 
Introduce special software to allow the permanent m onitoring of clearance time and reducing excess time 
Establish a joint consulting centre to provide technical assistance for economic entities on customs 
procedures and IT 
Bring the list and contents of documents produced by foreign traders to the customs bodies into conformity with international standards 
Introduce a unified electronic management system for exchange of information between customs houses and customs warehouses 
Conclude intergovernmental agreements on mutual a ssistance in customs matters with other governments 
Accede the revised Kyoto Convention 
Cooperate with Georgia with respect to establishing a joint border customs station between RoA and Georgia 
Develop a unified information database between differ ent government entities with a view to increasing the 
efficiency of the border control 
Refurbishment of Customs Administration Anti-Smuggling units with modern equipment and devices 
Establish premises for inspection and storage of customs goods 
Establish container platforms at all border customs checkpoints and customs warehouses 
Install scanners to examine vehicles, X-rays, equipmen t for detecting radioactive or ozone layer depleting 
substances, and electronic scales at border customs checkpoints and customs warehouses 
Establish customs laboratories for classification and expert examination of risk-prone goods and development 
of respective legal acts 
Introduce a vehicles control system which will establish control over the vehicles moving across the area of the country 
(cont'd) WT/TPR/M/228/Add.1 
Page 46  
 
  Obtain technical means to raise the e ffectiveness of Post-clearance control 
Develop post-clearance control procedures 
Training for specialists dealing with Post-clearance audit function 
Page 25, paragraph 13:   What alternative methods does Armeni a use to determine customs value in 
cases where it suspects under-invoicing? 
Answer:  
Determination of methods for customs valuation is defined in articles 87-93 of the RoA Customs 
Code.  If Determination of Customs Value by Tran saction Price Method is not applicable by the 
reasons defined in the Customs Code, the ne xt methods shall be applied in succession. 
(6) I MPORT PROHIBITIONS , RESTRICTIONS , AND LICENSING  
Page 32, paragraph 52:   For what reasons would the licensing commission not approve an 
application for a compound license? 
Answer:  
A compound license is granted within thirty d ays from the day of submission of required 
documents (application, legal entity's charter an d the copy of the state registration certificate, 
qualification certificates, and other informatio n and documents required by law and relevant 
secondary legislation) and payment of required state duties/fees by an applicant, unless other terms are stipulated by law. 
Information and documents required by relevant legislation may include only those that are 
necessary for protection of public and state sec urity and order, public health and morality, 
human rights and freedoms. 
A compound license is granted based on the conc lusion of the respective commission established 
by the Licensing Authority.  The procedure of  operation of licensing commissions is also 
stipulated by the Law on Licensing.  A compou nd license is valid with no time limits, unless 
otherwise stipulated by the relevant law. 
In certain cases, provided by the Law on Licensing, a compound license may be granted 
through a tender. 
(8) T
ECHNICAL REGULATIONS AND STANDARDS  
Page 35, paragraph 74:   The Secretariat Report states, "Armen ia notified the WTO that, in 1996, it 
concluded an agreement on mutual  recognition of certificates and cooperation in the sphere of 
standardization, metrology, and certification with Uk raine.  Armenia also si gned similar agreements 
with Belarus, Bulgaria, Georgia, Iran, Kazakhsta n, Kyrgyz Republic, Moldova, Russian Federation, 
and Tajikistan.  In addition, Armenia has simple cooperation agreements on is sues related to standards 
and technical regulations with China, India, and Sl ovakia."  What is the scope of the Agreement on 
Mutual Recognition of Certificates and Cooperation in  regards to agricultural products?  Do these 
agreements require Veterinary and Phyt osanitary Certificates from these countries? 
Answer:  
The mentioned Agreements do not include arti cles on agricultural products as well as 
veterinary and phytosanitary certificates requirements.  WT/TPR/M/228/Add.1 
 Page 47 
 
 
  In addition the Armenia has not agreements with Bulgaria, Slovakia and Iran they are just only 
Memorandum of Understanding for cooperation. 
(9) S ANITARY AND PHYTOSANITARY MEASURES  
Page 37, paragraph 86:   According to the Secretariat, the GOST system of standards and sanitary 
and phytosanitary regulations used in the Soviet Union was de jure  abolished in Armenia and that 
Armenia is now in the process of bringing its san itary and phytosanitary standards into convergence 
with the EU.  Please explain Armenia's laws regarding food safety, veterinary services and plant protection/quarantine in light of its obligations under the WTO SPS Agreement.  What measures has 
Armenia implemented under its new laws?  Could Armenia provide one or two examples of SPS 
measures implemented under these new laws that have been revised to reflect CODEX, OIE and IPPC 
standards and guidelines? 
Answer:
 
The RA Law on Food Safety defines that if th ere is lack of national standards, the norms 
accepted by international agreements are ac ting.  During the post-acceptance period 
134` AST-ISO, 33` AST-EN, 82` GOST-ISO, 33`  11` GOST-EN, 95` GOST(ISO), GOST(EN) 
are input in Armenia.  The Law on Food Sa fety (2006) was elaborated on the EC 178/2004 
regulation base.  The same we can also mention for the Law on Phytosanita ry (adopted in 2006, 
revised in 2009) and for other legal normative ac ts ensuring the enforc ement are co rresponding 
to the terms of the Agreement on Sanitary a nd Phytosanitary Measures and are approximated 
to the EU relevant legislation.  The Law on Fe ed is also developed in compliance with EU 
norms. 
IV. MEASURES DIRECTLY AFFECTING EXPORTS 
(1) C USTOMS PROCEDURES AND CHARGES  
Page 40, Paragraph 3:   The Secretariat's report notes that, "A rmexpertiza, an organization founded 
by the Chamber of Commerce and Industry of Armeni a, is responsible for issuing four different 
certificates of origin for Armenian exports de pending on their destinations...Exporters have 
complained that certification of origin is a costly  and complicated procedure, as even small quantities 
of exports are subject to sample analyses."  What  measures is Armenia considering or has already 
adopted to simplify its system for granting certificates of origin for Armenian exports? 
Answer:  
Currently, the Ministry of Economy drafted a new RoA Government Decree on the Procedure 
of Granting the Certification of Origin and Organizing the Examination.  According to the drafted decree the certificate fees will be fixed and system for granting certificates of origin will 
be simplified. 
V. OTHER MEASURES AFFECTING INVESTMENT AND TRADE 
(6) I
NTELLECTUAL PROPERTY RIGHTS  
(ii) Regulatory framework 
Page 52, Paragraph 53:   Armenia states that its "main IP legislation covers the major areas referred 
to in the TRIPS Agreement."  Article 13 of TRIPS states that "Members shall confine limitations or 
exceptions to exclusive rights to certain special c ases which do not conflict with a normal exploitation 
of the work and do not unreasonably prejudice the leg itimate interests of the right holder."  Article 23 
of Armenia's Copyright Law allows for a private use exception, with the caveat that the provision 
shall not apply "to the reproduction of whole bo oks … unless otherwise provided by this Law." WT/TPR/M/228/Add.1 
Page 48  
 
  • Under this provision, it would conceivably be acceptable for a user to copy all but a few 
pages of a book.  Is this a correct interpre tation of the Law?  If so, please explain this 
provision in light of Article 13 of TRIPS. 
• What provisions of the Copyright Law, if any,  provide for the reproduction of whole books by 
private users? 
Answer:
 
Article 23 1st paragraph of the Law on copyright and Related Rights of the Republic of 
Armenia provides reproduction of works for privat e, non-commercial use, which do not require 
permission from the author and are free of charge .  Such exceptions and limitations shall not be 
applied in a way which prejudices the legitimate interests of right holders or which conflicts 
with the normal exploitation of his work or other subject matter. 
Article 23, second paragraph states that the repro duction is not permitted with respect to 
written works to the extent of the whole book. 
Article 24 provides limitations and exceptions for the benefit of certain non-profit making 
establishments such as publicly accessible libraries and equivalent institutions, as well as achieves.  These are limited to certain special cas es established by Law.  And only the provision 
(c) of the Article 24 permits the reprographic reproduction (in one copy) of the whole book if 
such work is out of print not less than for 2 ye ars.  Such reproduction is permissible only for 
internal use by libraries, achieves and educat ional institutions but not for private users. 
Page 54, paragraph 56
:  The Secretariat Report indicates that a separate draft Law that will broaden 
the coverage of rights related to geographical indi cations (GIs) was sent to the National Assembly at 
the end of 2009.  It also states that the 2008 am endments to the Law on Tr ademarks, Service Marks, 
and Appellation of Origin of 2000 were not sufficien t to clarify certain aspects of the Law and that a 
draft of an entire new law was pr esented to the National Assembly at the end of 2009.  When will 
WTO Members have an opportunity to review this  new GI law and amendments to the trademark 
law? 
Answer:  
The Draft Laws on TM and GI have passed the first  hearing in the National Assembly and is in 
the phase of further discussions.  They are harmonized with the EU Directives and Counsel 
Regulations and the Singapore Treaty. 
After being adopted the 2 Laws, also in English, w ill be posted on the official website of the IP 
Agency. 
In WT/TPR/G/228, page 15, paragraph 58, Armenia indicates that in 2009 the government adopted 
a Concept Paper outlining the programs and measures that the government will implement to ensure 
effective and reliable protection of intellectual prope rty rights.  Could Armenia share a copy of this 
Concept Paper? 
Answer:  
English version of Policy Paper on Implementation of Reliable and Effective Protection of 
Intellectual Property is attached  (see Annex 1).   WT/TPR/M/228/Add.1 
 Page 49 
 
 
  (iii) Enforcement 
Page 55, paragraph 62:   How many IPR enforcement cases have been brought in the civil courts and 
in the criminal courts? 
Answer:  
The total number of IPR cases is 32.  Out of whic h 2 case on Trade Names, 1 Patent (2 cases are 
still in process), 2 cases on Appellation of Origin, 27 Trademarks.  The total number of 
convictions is 11 included those carried by the B oard of Appeals of the IP Agency.  The data 
provided refer only to those IPR cases in which the IP Agency has been engaged. 
Page 55, paragraph 63:   As Armenia is a transhipment point for trademark and copyright infringing 
products, has there been any thought by the governme nt to provide Customs with the authority to 
interdict shipments containing th ese illicit goods either through appli cation by right holders or ex 
officio? 
Answer:  
The customs authorities, in the framework of their competence, provide assistance in the 
protection of IPRs in accordance to the part 14 of the Customs Code of Armenia. 
Division for customs affairs of the Legal Department of the State Revenue Committee is 
responsible for registering the Intellectual proper ty objects and applications to suspend the 
release of goods under any customs regimes, as well as other activities directed to the protection of IPRs. 
Page 55, paragraph 64:
  Do Armenian authorities maintain sta tistics for raids, seizures, prosecutions, 
etc. to measure progress in stemming the tide of counterfeit goods? 
Answer:  
For the last 3 years as a result of undertaken me asures by the IPR unit for making an expertise 
following types of falsified goods were taken: 
• compact disks:  68,000 pcs; 
• mineral water and soft drinks:  1,647 bottles; 
• vodka and brandy:  2,575 bottles; 
• spare parts for cars:  676 pcs. 
However we feel that our legislation needs further improvements, specially:   
• granting ex-officio action rights to po lice, prosecutors, and Customs (Custom IPR 
register does not contain any registrations si nce criteria for registration seem to be too 
cumbersome, and procedures establishing fo r the storage and destruction of seized 
goods must be established); 
• ensuring better access to justice regarding IPR disputes, as well as strengthen capacity 
of institutional bodies.  WT/TPR/M/228/Add.1 
 Page 51 
 
 
  ANNEX 1 
Feb 23, 2010 - March 2, 2010    Annex to the RA Government 
Protocol Decree Nº 14 dated April 2, 2009 
POLICY PAPER ON IMPLEMENTATION OF RELIABLE AND EFFECTIVE 
PROTECTION OF INTELLECTUAL PROPERTY 
This Policy paper on Implementation of Reliabl e and Effective Protection of Intellectual 
Property (hereafter:  Policy Paper) presents the current peculiarities of the intellectual property 
protection system, describes, through analysis, the curre nt state of use of intellectual property subject 
matters in economy, reveals the existing problem s and proposes effective solutions to them. 
The analyses are based on the international lead ing practice, taking into account the current 
development trends of the Republic of Armenia ec onomy and the need to provide competitiveness in 
the knowledge based global economy. 
In particular, in this field the experience of  developed countries was considered, systems of 
which reflect the free market demands in a most clear manner. 
Consultations on the international best practi ce were given with the assistance of the World 
Intellectual Property Organization and the European Patent Organization. 
Intellectual Property includes two main spheres of right, industrial property and copyright. The industrial property rights are various.  The most popular ones are the rights in inventions 
and trademarks.  Patent on invention grants the inventor an exclus ive right for a limited period of time 
provided the technical essence of the invention is disclosed. 
Legal protection to trademarks, as identifi cation marks of proposed goods and services by 
particular right-holders, is granted for an unlimite d period, provided that their use with commercial 
purpose continues. 
Industrial property rights also include relatively less known rights, such as rights in industrial 
designs, geographical indications, trade names and new plant varieties. 
The other main field of intellectual property is copyright, which includes rights in works in 
literary, scientific, art domains, as well as the ri ghts of performers, phonogram producers, film 
producers, broadcasting organizations, publishers, makers of database, which are known as related 
rights. 
The general feature for intellectual property ri ghts is that the right-holder is entitled to 
prohibit the illegal use of intangible subject matte r of potential trade value notwithstanding of its 
being a solution serving as a basis for a novel product or process, an indication of origin of a good, a 
name of a trade organization, music, computer program or an audiovisual work. 
1. Challenges 
Intellectual property protection is one of the most important conditions for novelty.  It 
promotes the establishment of institute of research  and development, as well as the transfer of 
knowledge from laboratory to manufacturing dom ain, and from manufacturing to the market. WT/TPR/M/228/Add.1 
Page 52  
 
  Besides, intellectual property protection is an important condition for art and culture 
development. 
Precise and effective regime of intellectual pr operty protection is the main condition for free 
movement of knowledge and works in the global market.  It can also make a part of a broader policy and have essential significance for solu tion of global issues and key issues. 
2. Economic benefits of indus trial property rights protection 
 Property, whether material or non-material, has a decisive role for market economy.  
Industrial property rights, especially rights on invent ions, industrial designs and new plant varieties 
serve a drive for creation of new inventions and ot her innovations providing exclusive rights in them 
for a limited period of time.  Provision and protection of these rights contribute to the entry of 
newcomers to the market, including risk capital inv estments, ensuring production of goods (licensed 
by them) by capable companies. 
In the knowledge-based global economy the si gnificance of inventions and innovations 
increases as a competitiveness incentive.  In this  environment the continually increasing role of 
business entities, especially SMEs and research or ganizations, as well as universities becomes more 
important related to the goods production based on their licenses.  Exchange of knowledge between 
private sector and research organizations increases co mpetitiveness.  This approach creates favourable 
conditions for formation of a higher-level activity field and facilitates international exchange of 
knowledge. 
 The more actively research organizations implement business activities related to licensing of 
products, the closer their needs and problems appr oach SME needs and problems.  For that reason 
activities undertaken for SMEs to some extent can be beneficial for research organizations. 
 It must be taken into account that provision of industrial property rights, as an important 
component for management of intellectual property subject matters, has a big role in the general 
business strategy of companies.  It is conditioned by  the fact that business strategy, besides stipulating 
rights for new solutions, innovations and producing goods based on them, suggests creation of other 
new solutions through them and their implementation.   Stipulation of rights for the latter solutions 
gives an opportunity to their right-holders to  make potential competitors overlook patented 
technologies through new researches and developments , restraining activities of competitors in the 
market. 
3.  The Current State of the Intellectual Property Protection System 
3.1  Inventions, Utility Models, Industrial Designs 
9. The current phase of legal protection of inven tions, utility models, industrial designs in the 
RA is described by legislation specifics and its im plementation practice.  Since 1993 the legislation 
underwent a number of changes, which were made considering economy development specifics, as 
well as the circumstances that timelines of providing rights for the mentioned subject matters must be 
reduced as much as possible, and costs related to them must reach the minimum and protection of 
those rights must be reliable and effective.  These i ssues, to a certain extent , are solved by the "RA 
Law on Inventions, Utility Models, I ndustrial Designs" adopted in 2008,  which is in line with norms 
envisaged by international agreements and corresponding EU Directives. 
The main peculiarity of the law is that the i nvention patent is provided without conducting an 
essential examination (i.e. during the examination pate nt capability of the invention is not checked), 
which can be valid for 10 years.  The patent can be valid also for 20 years, if before the end of the  WT/TPR/M/228/Add.1 
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  9th year of validity evidence is provided by the patent-holder on the patent capability of the given 
invention.  Evidence must be provided only by an internationa lly recognized search centre, 
specialized in the given area.  Su ch an approach provides a possibility to avoid the need of having a 
big number of experts, ensuring high quality at the same time. 
 The other peculiarity of the law is that it clearly defines the patent rights implementation 
mechanism, when there is an issue of prohibiting the use of the given invention by third parties.  In 
such cases, the Law envisages to im plement the exclusive right based on the patent only when there is 
evidence proving the patent capability of the given inve ntion.  Such an approach, to a certain extent, 
will reduce cases of issuing a patent for inventi ons without corresponding quality, receipt of similar 
applications and will exclude the possibility of creating non-justified obstacles in the business. 
3.2  Trademarks, Designations of Pro duct Origin and Geographical Indications 
On the legal protection of Trademarks, Desi gnations of Product Origin and Geographical 
Indications the RA legislation started to be formed  since 1995, the future ch anges of which aimed at 
legislation improvement, considering requirements of  the RA international agreements, international 
leading practice and the need to solve problems originated in the law implementation practice. 
 At the same time the fact was considered that rights for the trade mark play an important role 
for creation of a conscientious competitiveness syst em, since it is these marks that enable the 
consumer to distinguish goods and services of one organization from goods and services of another 
organization.  Besides, the role of trademarks becomes important also because on the one hand they 
serve as a means for information and advertising, on  the other hand they are considered the symbol of 
capacities and reputation of the organization. 
In connection to this the "RA Law on Trade and Service Marks, Designations of Product 
Origin" stipulates mandatory consideration in each case of rights valid earlier (for providing legal 
protection to trademarks), which were acquired not only for trademarks but also trade names. 
The legislation on legal protection of trademar ks today generally corresponds to the norms, 
which are defined by a number of international agreem ents in the area, as well as by the agreement on 
concepts related to WTO Intellectual Property Trade. 
Despite this, there is a need to harmonize the legisl ation to requirements defined by new international 
agreements and EU Directives.  Besides, practice of law implementation shows that some clauses of conducting an examination need clarification and must  be harmonized to the strictest international 
standards. 
Slightly different is the situation with legal protection of Designations of Product Origin and 
Geographical Indications.  Despite the availability of the Law (in force) on Designations of Product 
Origin, there are still certain issues related to its impl ementation.  Particularly the fact of the law so 
far being used for mineral water names already creat ed a need for serious discussions and stipulation 
of new approaches. 
Some clauses regulating legal protection of Geogr aphical Indications were placed in the "RA 
Law on Trade and Service Marks, Designations of Product Origin."  Main clauses of definition and 
protection of Geographical Indications are defined by the RA Civil Code.  Therefore, the fact that 
order and conditions of providing and stopping lega l protection of Geographical  Indications and their 
use are not clearly regulated by a separate legislative act can become a reason for creation of some problems, particularly their illegal use will inev itably bring to unconscientiously competitiveness. WT/TPR/M/228/Add.1 
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  The solution of the mentioned problems must be  implemented by adoption of new laws on 
Trademarks and Geographical Indications. 
3.3  Copyright 
 The situation in copyright:  the other area of  intellectual property, is essentially different.  
Copyright and related rights are regulated by th e new "RA Law on Copyright and Related Rights" 
adopted in 2006.  The law is completely in li ne with norms defined by the RA international 
agreements and requirements of EU Directives. 
In accordance with the law, for protection of interests of the authors and management of 
property rights an organization (already fully estab lished) for collective management of property 
rights of right-holders was created and works, whic h is integrated in the corresponding international 
network and cooperates with state, public and private structures. 
According to the law no registration is required for copyright origin, the right is originated by 
the fact force for creation of the corresponding work and preparation of the related right subject matter. 
4.  Strategy of Industrial Property Rights 
In protection of industrial property rights the RA strategy must aim at responding to 
challenges of knowledge-based global economy in the 21
st century. 
The industrial property protection system must continue to serve as an incentive for activation 
of invention and innovation activities.  To achieve this, certain criteria are already internationally 
adopted, in particular: 
• a mechanism for receipt of applications of industrial property subject matters by modern 
technologies, 
• high quality system strictly in line with inte rnational standards and examination accepted in 
practice, 
• quality of provided rights, clear legislation and affordable prices, joint law interpretation and 
court procedures, 
• database creation on subject matters that recei ved legal protection, their exchange with 
databases of corresponding foreign agencies, provision of their accessibility for the public, 
• valuing intellectual process results and ensu ring easy circulation of inventions and 
innovations. 
 Justification of rights, provided in connection to it, is very important for all aspects (of the 
whole system), which promote business, including SME activities, contribute to knowledge exchange 
and serve a powerful and effective means in fight ing against circulation of false and counterfeit 
goods, as well as piracy. 
Besides, as a civil right subject matter, ensuring full circulation of intellectual property can be 
made only based on intellectual property assessment, which is not regulated by law.  And the 
corresponding legislative framework can have high e fficiency of implementation, if universities are 
involved in preparation activities of assessors.  WT/TPR/M/228/Add.1 
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  It is necessary to: 
• Introduce systems for electronic receipt, discussion and publication of industrial property 
subject matters. 
• Implement outsourcing (as much as possible) for conducting invention examination activities 
to international and foreign search centres accredited by World Intellectual Property 
Organization. 
• Expand the circles of exchanging industrial prope rty information databases and ensure their 
availability for the public through internet. 
• Introduce a system for making descriptions of services provided in relation to intellectual 
property and assessing performance. 
• Contribute to reinforcement of rights for intellectual property in foreign states. 
• Introduce an intellectual property assessment sy stem, which suggests ensuring corresponding 
legislative framework and form ing an institute of assessors. 
5.  The quality of industrial property rights 
5.1  Inventions 
In terms of ensuring quality it is important what  inventions and innovati ons are granted patent 
protection.  In this respect it is necessary to preven t (by consultation provided to applicants) or reduce 
(as much as possible) the entry of applications for inventions without patent capability, which have a 
negative impact, since because of them the time requi red for examination of more important invention 
applications is aimlessly delayed.  The menti oned consultation must be implemented by the 
Intellectual Property Agency, since the expertise an d professional skills of experts play an important 
role. 
Protection of utility models has its special place  in ensuring quality and faster implementation 
in economy.  For the protection of utility models we aker requirements are defined:  only novelty and 
industrial use requirements, testing of which is co mparatively easy and less costly and the expiration 
date is shorter:  10 years. 
In terms of ensuring quality of inventions and utility models it is also important to make the 
information on them accessible to companies and inventors. 
For ensuring corresponding quality of provided rights it is necessary to:  
• Implement comprehensive study of patents to analyze rights acquired with weaker bases and 
find effective means to avoid their provision. 
• Study possible problems created by unused pa tents, assess their creation reasons and 
undertake relevant means. 
5.2  Trade marks 
For the RA economy it is necessary to have a strong and reliable system of trademark 
protection.  It is an effective means to prevent unconscientious use of trademarks, violation of rights 
against it, use with improper permission, as well as review of rights, in case of not using them.  The WT/TPR/M/228/Add.1 
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  process of providing legal protection (registration) requires high quality, strict criteria, including the 
examination, which will ensure their being valid and in line with consumer requirements as a result of 
registration. 
The quality of rights for trademarks is important  especially for formation of a conscientious 
competitiveness system and prevention of unconscientious cases. 
For ensuring corresponding quality of provided services it is necessary to: 
• conduct examination of trademarks by examin ation implementation approaches accepted in 
practice and strictly in line with international standards, 
• envisage clauses (in trademark legislation), which would provide a possibility to consider 
during the examination foreign famous tradem arks, brands not registered in the RA, 
• for limiting the right against the unused register ed trademarks legally clarify conditions and 
mechanisms for early end of registration of  these trademarks, taking into account clauses 
defined by international agre ements and EU directives, 
• ensure ongoing improvement of professional skills of experts. 
6.  Invention support to SMEs 
 Implementation of industrial property rights can  greatly promote SME development.  Usually 
the SME depend less on protection of industrial prope rty rights.  When it's a result of insufficient 
awareness, consultation or other required support, it is necessary to urgently apply a corresponding 
policy.  Therefore, the state must create conditi ons for the SME to use opportunities offered by the 
market, as well as relevant informa tion on inventions and trademarks. 
Besides, it is necessary to improve SME dispute solution system (related to industrial 
property rights), which can imply application of an alternative mechanisms for dispute solution, 
particularly trade arbitrations, which can add to th e court system, if they operate more quickly and 
comprehensively and are more affordable in terms of the price.  Through solution of key aspects of 
relations between courts and trade arbitration solutio n of disputes related to intellectual property rights 
will become rather easy. 
 The main objective of programs based on intellectual property must be raising SME 
awareness and ensuring support services. 
It is necessary to:  
• study as to how operation of trade arbitrations can be promoted in the future and how their 
current work can be facilitated in terms of  court procedures related to patent issues, 
• provide sufficient support to SMEs for strengt hening industrial property rights acquisition 
activities and providing relevant and wide-ranging support services, 
• improve provision of information for all th e organizations and research institutes on 
intellectual property management, as well as SMEs.  WT/TPR/M/228/Add.1 
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  7.  Implementation of intellectual property rights:  fight against piracy and counterfeiting 
Protection of innovations must go with use of effective implementation mechanisms.  
Falsification and piracy of products is a ne gative phenomenon (that reached enormous volume), 
which grows with absolute value and proportiona lly parallel to international trade growth and 
technical capacity development.  It essentially damages the country's economic development growth 
and creation of new employment places, risking the health and safety of citizens. 
The annual turnover of counterfeit and pirate d goods makes approximately US$200 billion.  
In the RA similar examinations were not conducte d, however counterfeiting and piracy, especially in 
copyright, is evident.  Thus, actually stolen products are freely sold in the mark et.  Such activities are 
mainly implemented out of the tax field, especial ly in cases, when it is about copyright area:  
particularly turnover of pirate ve rsions of audiovisual works, CDs and computer software.  This 
phenomenon greatly harms the culture and economy pr ohibiting their development.  Moreover, their 
presence damages the country's international reputa tion, reduces probability of potential flow of 
foreign investments, increasing their risk factor. 
In circulated volumes of counterfeit and pirate d goods a certain part is products imported 
from the foreign states, which is evident in the trade net even without conducting special 
examinations. 
Presence of big volumes of counterfeit and pirated goods is mainly  conditioned by the 
following circumstances: 
• insufficient follow up of right-holders regard ing protection of their intellectual property 
rights, 
• weak cooperation between state bodies fighting agai nst law violations in intellectual property 
and absence of a joint action plan, 
• weak sanctions stipulated by the law for law vi olations in the area and imperfection of their 
implementation mechanisms. 
It is necessary to: 
• for strengthening fight against law violations in intellectual property and coordination of its 
implementation an interagency commission was created (chaired by the RA Minister of Economy), which will include representatives of the RA Ministries of Economy, Culture, Diaspora, RA National Security Service, RA Police, RA State Revenue Committee by the 
Government, State Commission for the Protection of Economic Competition of the Republic 
of Armenia, as well as NGOs representing interests of right-holders, 
• implement periodical market analyses to clarify turnover volumes of counterfeit and pirated 
goods and extent of damages, 
• develop and implement a joint action pl an against counterfeiting and piracy, 
• for ensuring implementation of intellectual pr operty rights envisage (in the current laws) 
contemporary implementation clauses (meeting inte rnational requirements), which must be in 
line with the EU Implementation Directive 2004/ 48/EC.  For effective implementation of 
those clauses ensure  mutually agreed proper actions by corresponding institutional 
infrastructures and responsible bodies at all leve ls from the police, customs services and other 
state structures to courts,  WT/TPR/M/228/Add.1 
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  • ensure implementation of border activities envi saged by the law and undertake measures to 
ensure information exchange between right-hol ders and customs services to discover transfer 
of counterfeit and pirated goods,  
• study international practice in reserving the right to the customs bodies for implementation of 
ex officio actions envisaged by the WTO Agreem ent on intellectual property trade concepts in 
order to exclude suspicious transfers and prev ent entrance of counterfeit and pirated goods to 
the market, 
• take measures for improving ar ea related knowledge of the corresponding employees of the 
police and customs bodies (bodies ensuring implementation of intellectual property legislation) and judges, 
• expand the volume of public awareness activiti es, which would change the attitude of the 
public toward counterfeit and pirated goods. 
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