EEU custom clearance rules to apply to Armenia starting from Jan. 1 – official

The customs rules in the Eurasian Economic Union require that certain products manufactured in the free economic zones of Armenia enter the member states’ markets after custom clearance starting from January 1.

The procedure will apply only to those goods that contain raw materials imported from third countries. For comments on this and other export-related issues, Tert.am interviewed Hovhannes Azizyan, a deputy minister of economic development and investments.

Mr Azizyan, when Armenia was acceding to the EEU, no plans for enforcing custom clearance for goods manufactured in the country were being considered. What has changed over the period, and was the expected procedure originally known?

Armenia’s EEU membership agreement envisaged exceptions for the country, i.e. – irrespective of third country raw imports, it exempted it from customs duties until January 1, 2017,.

Then what about the countries Armenia has free trade agreements with? Will they be effective after January 1?

The free trade agreements Armenia had with Georgia, Ukraine and other CIS countries until January 1, 2015 are and will remain in effect.

So what are the changes expected in our trade relations with neighboring countries which are not EEU members?

If the products manufactured in the free economic zone are neither exported to the EEU nor sold in Armenia, no changes are expected, i.e. – not custom fees are going to be charged.  

What about the expected positive and negative impacts? What risk factor do you see behind the change?

All the free economic zones in the EEU will from now on have an equal opportunity. The exception for us was a temporary advantage which is now being eliminated. We are now on an equal footing with the other manufacturers in the EEU.

What about the risks?

The elimination of any advantage implies certain negative impacts and risks which the state and businessmen must maximum reduce. Certain approaches are now being considered to be later discussed with the corresponding companies. I would like to emphasize anyway that despite the elimination of that advantage, the companies functioning in the free economic zone enjoy a number of other privileges that give advantages over other manufacturers in the EEU.

Was Armenia so far the only country benefiting from the exception?

Kazakhstan too, had such an advantage, but the conditions will be equal for all beginning January 1.