Includes the barriers (tariff and non-tariff) that U.S. companies face when exporting to this country.
Last Published: 2/12/2019

There is still a lack of clarity in many areas such as import licensing, customs procedures, and IPR enforcement which now fall under the jurisdiction of the EAEU. Because of this U.S. companies may face a number of tariff and non-tariff trade barriers, including reference pricing on customs duties, when exporting to Armenia. Another potential issue is the EAEU’s complex system of standardization, which is based on Russia’s standardization regime and is extremely complex, lacks clarity, and is highly redundant. U.S. companies are encouraged to obtain appropriate legal advice or assistance from experienced distributors or consultants on all aspects of Eurasian Economic Union requirements.

Membership in the EAEU, is forcing Armenia to apply stricter standardization, sanitary, and phyto-sanitary requirements in line with Russia’s requirements. Companies have to comply with EAEU technical regulations. Prior to this date, Armenian companies and importers are only required to comply with the relevant national legislation. For most goods manufactured in the Eurasian Economic Union, which are subject to safety requirements, the two-year transitional period begins on January 1, 2016. For some products, such as furniture or wheeled vehicles, the new requirements will go into effect in 2019 and 2022 respectively. After the end of the transitional period all goods circulating in the territory of the EAEU must meet EAEU requirements. However, the Armenian Government recommends importers and exporters begin using EAEU technical regulations as quickly as possible. Companies should consult with the Armenian conformity assessment body. They can also seek advice at the Eurasian Economic Commission.

Based on the Eurasian Economic Union requirements the Armenian Customs Code is in line with WTO requirements.  Nevertheless, improper implementation of the Customs Code remains a barrier to trade. According to the Doing Business 2017 study by the World Bank, Armenia stands at 48 in the ranking of 190 economies on the ease of trading across borders.  The study found that, on average, time required to import was 41 hours for border compliance and 2 hours for documentary compliance, and the costs for the border and documentary compliances were each at $100. Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new equipment to improve border operations and introducing a risk management system. The country has also reduced the time and cost for documentary and border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. However both local and foreign businessmen indicate that cumbersome and ambiguous laws and procedures as well as their poor and inconsistent administration are major obstacles in dealing with the customs authorities, which frequently results in extortion or unofficial payments.  However, since the new Government came to power in May 2018, signifcant improvments are reported and most agree that a sound knowledge of the laws and procedures helps to avoid corrupt practices.

While the Customs Code facilitates export transactions with much less documentation than for customs clearance of imports, most exporters report minor hassles in the customs houses.  One of these is the informal requirement to submit a special permit issued by the head of the customs house to the customs officer.  To get such a permit, exporters must petition the head of the appropriate customs house in writing.  Although there are no reported cases of rejection, this practice is not in line with the existing legal framework.
Certification of origin is a complicated and costly procedure for exporters.  Exporters must present a certificate of origin from the Armenian Chamber of Commerce and Industry (ACCI), after ArmExpertiza LLC has examined the exports.  The ACCI applies a complicated and expensive mechanism for issuing certificates; ArmExpertiza – a specially created sub-division of the ACCI must specifically study samples of goods to be exported. Exporters, especially those that export goods in relatively modest quantities, are confused and discouraged by the procedures and complicated fees.  The process was supposedly simplified after the government handed them over to a quasi-governmental institution designed to help promote exports.  In 2002, the government also abolished the state fee for obtaining the certification in an attempt to simplify the procedure and lower the cost to business.  However, ArmExpertiza has since raised its fees considerably, justifying the higher cost by arguing that they use more expensive experts. 

For more information and help with trade barriers please contact:
International Trade Administration (http://trade.gov/enforcement/)
Enforcement and Compliance
(202) 482-0063
ECCommunications@trade.gov
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.