WORLD TRADE  
ORGANIZATION  G/LIC/N/3/ARM/5 
3 October 2008 
 (08-4688) 
Committee on Import Licensing Original:   English 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES
1 
 
Notification under Article 7.3 of the Agreement on Import Licensing Procedures  
 
ARMENIA 
 
  The following communication, dated 29 September 2008, is being circulated at the request of the Delegation of Armenia.  
______________ 
 
 
I. GAS AND ELECTRICAL ENERGY 
Outline of system
 
 1. Imports of natural gas and electrical energy ar e regulated by the Law “On Licensing” of the 
Republic of Armenia (hereinafter referred to as RA),  the Law "On Energy" of the RA and the Public 
Services Regulatory Commission Decree No. 24 of  3 April, 2002 “On Approval of the temporary 
order of the licensing for import and export of na tural gas and electrical energy in the power 
engineering sector of the Republic of Armenia”. 
Purposes and coverage of licensing
 
2. Imports of natural gas and electrical energy are subject to non-automatic licensing. 
3. The system applies to goods originating in (intended for export) and coming from all 
countries. 
4. The import licensing system is not intended to restrict the quantity of imports. The licensing 
purposes to protect the consumers’ rights, to support the regulation of developing market relations, to 
increase the quality of products and services and to ad minister control over persons engaged in the 
types of activities that are potentially most risky as threatening to the life and health of individuals, 
property, state and public interests. 
5. The licensing is statutorily required. The licensing is regulated by the Law "On Licensing" of 
RA, Law "On Energy" of RA and the Public Se rvices Regulatory Commission Decree No. 24 of  
3 April 2002 "On Approval of the temporary order of the licensing for import and export of natural 
gas and electrical energy in the power engineering sector of the Republic of Armenia".  The legislation does not leave designation of products subject to licensing to administrative discretion.  The government can not abolish the system without a legislative approval. 
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. G/LIC/N/3/ARM/5 
Page 2  
 
  Procedures
 
6. There are no quantitative restrictions. 
7. (a) To obtain a licence an applicant shall subm it the application and all necessary documents to 
the Public Services Regulatory Commission of the RA. The Commission shall consider the application and shall adopt a decision within 60 days from the date when all the required 
documents are submitted by an applicant. There is no time-limit for submitting an application. 
(b) There are no circumstances under which a li cence can be granted immediately on request. 
(c) There are no limitations as to the period of the year during which an application for a licence 
and/or importation may be made. 
(d) Only the Public Services Regulatory Commission of the RA shall consider the application for 
a licence and adopt a final decision. 
8. The application for a licence shall be refused if: 
(a) An applicant is adjudicated a bankrupt or insolvent; (b) The specifications set out in the application do not comply with the technical requirements 
operating in the RA; 
(c) In case of issue of a licence the right of another licence holder is limited; 
(d) An applicant does not submit the required additional information or documents or the 
additional decision of the commission of experts, the absence of which do not permit to continue the consideration of the application; 
(e) Documents or information submitted by an applicant are defective, obviously false or 
distorted and do not comply with the legislation of RA; 
(f) The import or export may result in security and safety distortions of the power system as well 
as the rise of the statutory prices of natural gas and electrical energy sold to consumers of RA.  
The reasons and legal bases for the refusal to issue a licence are clearly laid down in the 
decision on the refusal of the application for a li cence which is given to the applicant in the due 
manner. The decision on the refusal of the applica tion may be appealed to a court according to the 
legislation of RA. 
Eligibility of importers to apply for licence
 
9. Only legal persons are eligible to apply for a licence. 
Documentational and other require ments for application for licence  
10. The following information is required in an application: 
(a) A copy of a charter; 
(b) A copy of a state registration certificate; G/LIC/N/3/ARM/5 
Page 3 
 
 
  (c) Information about stockholders and their shares; 
(d) The financial statement of common nature of  a firm (if available also the copies of the 
inspection acts made by other bodies and auditor' s conclusion of a firm made up during last 
year); 
(e) Outline contract (agreement) on import concl uded with a foreign dealer or memorandum of 
intentions about import or a fina l contract on import which will be  considered to be in force 
from the point of obtaining an import licence; 
(f) The conclusion of the system operator about th e possibility of realizing the proposed regimes 
of importation; 
(g) Financial guarantees according to the order established by the Commission; 
(h) A receipt of state duty payment in accordan ce with the Law "On State Duties" of the RA. 
11. See point 10 above. 
12. As provided by the Law "On State Duties" of RA AMD 10,000,000 (Armenian Dram) must 
be paid for a licence. 
13. A legal person applying to the Commission for obtaining an import licence shall submit 
financial guarantees, by which the le gal person or the guarantee are obligated to transfer the defined 
sum to the state budget of the RA as financial penalty , in case the legal person or the guarantee do not 
meet the requirements of the licence in the due manner. The amount of the financial guarantee for 
obtaining an import licence comprises 10 million Armenian Drams and it is guaranteed for the whole period of importation. In case of meeting the requirements set out in the licence, the Commission adopts a decision on reimbursement of the financial guarantee. 
Conditions of licensing
 
14. Import licences are mainly granted according to th e date specified in the contract of import 
concluded with a foreign dealer. In case of necessi ty of the extension of the validity period of a 
licence, the licence holder shall apply to the Commissi on at least 15 working days before the end date 
of the validity of a licence, designating the time required.  
15. If licence holders breach the requirements of the Law "On Energy" of the RA, do not meet or 
fulfil inappropriately or violate the requirements of the legal acts of the Commission and of the 
licences, the Commission is eligible to commission w ith the elimination of th e violations and apply 
the following penalties: 
 - Warning; 
 - Tariff reduction; 
 - Suspension of a licence operation; 
- Deprivation of a licence. 
16. Licences are not transferable between importers . A licence does not apply to the other legal 
persons jointly working with a licence holder, as well  as to the legal persons established and acting by 
the participation of a licence holder.  
17. No, there are no other conditions att ached to the issue of a licence. G/LIC/N/3/ARM/5 
Page 4  
 
  Other procedural requirements
 
18. Administrative procedures are stipulated by the acquisition of the required documents for 
obtaining a licence designated in point 10 of this document. 
19. Not applicable. 
II. FIREWORKS AND DIAMONDS 
Outline of system  
 
1. Production, import or trade of fireworks ma terials and the trade, import, export and 
transportation of diamonds whether or not worked but mounted or set classified under HS nomenclature 710210000, 710221000, 710231000 are regulated by the Law “On licensing” of the 
Republic of Armenia. The licensing system is regulated by the Ministry of Finance. 
Purposes and coverage of licensing
 
2. Production, import or trade of fireworks mate rials and the trade, importation, export and 
transportation of diamonds whether or not worked but mounted or set classified under HS nomenclature 710210000, 710221000, 710231000 are subject to automatic licensing. 
3. The system applies to goods origina ting in and coming from all countries. 
4. The licensing of the aforementioned products is not  intended to restrict the quantity or value 
of imports. The licensing purposes to protect the consumers’ rights, to support the regulation of developing market relations, to incr ease the quality of products and services. 
5. The licensing is statutorily required. The licensing is regulated by the Law “On Licensing” of 
the Republic of Armenia. The government can not ab olish the system without a legislative approval. 
Procedures
 
6. There are no quantitative restrictions. 
7. (a) In accordance with our legislation the licence shall be granted in 3 days after submitting the 
application and all necessary documents to the Ministry of Finance of the Republic of Armenia. 
(b) There are no circumstances under which a li cence can be granted immediately on request. 
(c) There are no limitations as to the period of the year during which an application for a licence 
and/or importation may be made. 
(d) Only the Ministry of Finance of the Republic  of Armenia shall consider the application for a 
licence. 
8. The application for a licence shall be refused if: 
(a) Documents submitted by an applicant are defective, obviously false or distorted; 
(b) Submitted documents do not comply with the requirements of the Law “On Licensing” and 
the legislation of the Republic of Armenia; G/LIC/N/3/ARM/5 
Page 5 
 
 
  (c) The applying legal person, according to law and its charter, has no right to perform the 
requested type of activities subject to licensing; 
(d) The applying natural person has no right to perfo rm the requested types of activities subject to 
licensing; 
(e) In other cases stipulated by laws or licensing procedures. 
The reasons and legal bases for the refusal to issue a licence are clearly laid down in the 
decision on refusal of the application for a licence wh ich is to be given to the applicant in the due 
manner. The decision on refusal of the application fo r a licence may be appealed to a court or higher 
authorities according to the legislation of the Re public of Armenia, within a month period following 
the day of receiving the respective refusal. 
Eligibility of importers to apply for licence  
9. All persons, firms and institutions are eligible to apply for a licence. 
Documentational and other require ments for application for licence  
10. The following information is required in an application: 
(a) For legal persons: 
(i) The name and the organizational-legal form, location and place(s) of activity; 
 (ii) Type of activity subject to licensing which the applicant intends to perform. 
(b) For an entrepreneur or natural person: 
 (i) The name and surname, residence and place(s) of activity;  (ii) Type of activity subject to licensing which the applicant intends to perform. 
The following documents are required: 
(a) For legal persons: 
(i) A copy of its charter; (ii) A copy of a state registration certificate (with all copies);  (iii) A receipt of state duty payment in accord ance with the Law "On State Duties" of the 
Republic of Armenia; 
 (iv) A copy of taxpayer’s identification number; 
(b) For entrepreneur or natural person: 
(i) A copy of a state registration certificate of entrepreneur;  
 (ii) A receipt of state duty payment in acco rdance with the Law "On State Duties" of the 
Republic of Armenia; 
 (iii) Information about a taxpayer’s identifi cation number or number of a social card. 
11. Not applicable. G/LIC/N/3/ARM/5 
Page 6  
 
  12. As provided by the Law "On State Duties" of the Republic of Armenia the following amounts 
of duties must be paid: 1.000.000 AMD (Armenian Dram) for a licence for trade, importation, export and transportation of diamonds (whether or not worked but mounted or set); 50 000 AMD for a 
licence for production, import or trade of firework s materials for legal persons and 10 000 AMD for a 
licence for production, import or trade of fireworks materials for entrepreneur or natural person. 
13. There is no deposit or advance payment require ment associated with the issue of licences. 
Conditions of licensing
 
14. The licences for production, import or trade of fi reworks materials and th e trade, importation, 
export and transportation of diamonds (whether or not worked but mounted or set) are granted without 
time limits. 
15. There is no penalty for the non-utilization of a licence or a portion of it. 
16. Licences are not transferable between other legal entities including importers. 
17. No, there are no other conditions att ached to the issue of a licence. 
Other procedural requirements  
18. Not applicable. 
19. Not applicable. 
 
__________