RESTRICTED
WORLD TRADE WT/ACC/SPEC/ARM/1/Rev.11
1December 1997
ORGANIZATION(97-5271)
Working Party onthe Original: English
Accession ofArmenia
DRAFT REPORT OFTHE WORKING PARTY
ONTHE ACCESSION OFARMENIA
Revision
I. Introduction
1. Atitsmeeting on17December 1993, theCouncil ofRepresentatives established aWorking
Party toexamine theapplication oftheGovernment ofArmenia toaccede totheGeneral Agreement
onTariffsandTrade(GATT1947)underArticleXXXIII,andtosubmittotheCouncilrecommendations
which might include adraft Protocol ofAccession. Inacommunication dated
31January 1995 (WT/L/25), theGovernment ofArmenia applied foraccession totheAgreement
Establishing theWorld Trade Organization (WTO) pursuant toArticle XIIoftheWTO Agreement.
Following Armenia 'sapplication andhaving regard totheDecision adopted bytheGeneral Council
on31January1995(WT/GC/M/1),theWorkingPartyontheAccessionofArmeniatotheGATT1947
wastransformed intoaWTO Accession Working Party. Theterms ofreference oftheWorking Party
were alsocontained indocument WT/L/25.
2. TheWorking Party meton24January and23-24 September 1996, 14May1997[and...]under
theChairmanship ofH.E. Mr.D.Kenyon (Australia).
Information
3. TheWorking Party hadbefore it,toserve asabasis foritsdiscussions, aMemorandum on
theForeign Trade Regime ofArmenia (WT/ACC/ARM/1), andthequestions submitted byMembers
ontheArmenian foreign trade regime together withthereplies oftheArmenian authorities thereto
1Inorder tofacilitate theidentification ofchanges totheearlier version oftheReport additions tothe
textareshaded anddeletions arestruck out.WT/ACC/SPEC/ARM/1/Rev.1
Page2
(WT/ACC/ARM/2 andCorr.1; WT/ACC/ARM/5; andWT/ACC/ARM/8). Inaddition the
representative ofArmenian made available totheWorking Party thefollowing material:
- DecreeoftheGovernmentoftheRepublicofArmeniaNo.40of13February1993,"Additional
Measures onState Regulation ofInternational Economic Activities";
- Resolution No.31of21February 1995, "OnRegulation Regarding theEstablishment,
Registration, Licence andSuspension ofActivities ofBanks andTheir Branches andAgencies
andThose ofForeign Banks Operating intheRepublic ofArmenia";
- LawonAmendments andAdditions totheRepublic ofArmenia Lawonthe"Value-Added
Tax" of10December 1994;
- LawoftheRepublic ofArmenia onProperty Tax;
- Law onMaking Amendments intheRepublic ofArmenia Law onExcise Taxof
30November 1994;
- LawonPledge Collateral;
- LawonBankruptcy ofEnterprises andIndividual Entrepreneurs of15June1995;
- LawonMaking Amendments intheRepublic ofArmenia LawonCorporation Taxof
19December 1994;
- Draft LawonStandardization andCertification;
- LawonPatents of21August 1993;
- LawonIncome Taxof8February 1995;
- LawonLand Taxof27April 1994;
- LawonState Agrarian Inspections;
- Statute ofthePeasant andCollective Peasant Farms of22January 1991;
- TheLand Code of29January 1991;
- Supreme Council Resolution ontheMaximum Sizes oftheLandLotsinProperty ofthePeasant
andPeasant Collective Farms;
- Resolution No.581of16December 1994, "OnCorroboration oftheTemporary Regulations
forAuditing Activities intheRepublic ofArmenia";
- Government Decision of17January 1995, "OntheProcedure ofGranting Licences for
Importation andExportation ofGoods (Works, Services) intheRepublic ofArmenia";
- Government Resolution No.67of8February 1995, "OntheStateProcurement Order of1995
oftheRepublic ofArmenia";
- Government Resolution No.4of19August 1995, "OnConfirmation oftheTemporary
Regulations forTrademarks andService Marks";
- Government Resolution No.606of29December 1994, "OnRates oftheExcise Tax";
- Government Resolution No.88of23February 1994, "OntheOrder ofSubmitting Statistical
Reports Regarding theImportation andExportation ofServices intheRepublic ofArmenia";
- CouncilofMinistersResolutionNo.161of5March1991,"OntheOrderofExercisingDiverse
Types ofEconomic Activities ontheTerritory oftheRepublic ofArmenia";
- Decree oftheGovernment oftheRepublic ofArmenia No.124of29December 1995 On
Non-Tariff Regulation oftheCommodities (Operations, Services) Import andExport inthe
Republic ofArmenia;
- Statement oftheCentral Bank oftheRepublic ofArmenia onJoining toArticle VIIIofthe
IMFAgreement.;
- TheLawoftheRepublic ofArmenia of30June1996, "OnCentral Bank ofArmenia";
- TheLawoftheRepublic ofArmenia of30June1996, "OnBanks andBanking";
- TheLawoftheRepublic ofArmenia of10June1996, "OnBankruptcy ofBanks";
- Decree oftheGovernment oftheRepublic ofArmenia No.124of29December 1995, "On
Non-Tariff Regulation oftheCommodities (Operations, Services) Import andExport inthe
Republic ofArmenia";WT/ACC/SPEC/ARM/1/Rev.1
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- Amendments totheLaw, "OnPrivatization andDenationalization ofState-Owned Enterprises
andUnfinished Construction Sites";
- List2oftheResolution oftheGovernment oftheRepublic ofArmenia No.415of1995,"On
types ofActivities thatareSubject toLicensing intheTerritory oftheRepublic ofArmenia";
- Statute oftheMinistry ofEconomy oftheRepublic ofArmenia of20June1996, "OnIssuing
Inferences onMinimal Pricing ofExports ofProducts fromFerrous andNon-Ferrous Metals
notProduced inArmenia, aswellastheirScrap";
- Statute oftheMinistry ofHealth oftheRepublic ofArmenia of20June1996, "OnIssuing
Inferences onImport andExport ofPharmaceuticals intoandfromtheRepublic ofArmenia";
- Statute oftheMinistry ofEnvironment Protection andMineral Resources oftheRepublic of
Armenia of20June1996, "OnIssuing Inferences onExport ofWild Animals andPlants
Included intheRedBook (Endangered Species Listing) oftheRepublic ofArmenia";
- Statute oftheMinistry ofAgriculture andFood oftheRepublic ofArmenia of20June1996
OnIssuing Inferences onImport ofPlant Protection Agents intotheRepublic ofArmenia.
- Decree oftheMinistry ofHealth oftheRepublic ofArmenia, "OnRegulation ofPharmaceutical
Activity andEnsuring theQuality ofDrugs andMedical Facilities";
- Programme oftheGovernment oftheRepublic ofArmenia, "OnPrivatization ofState
Enterprises andUnfinished Construction sitesoftheRepublic ofArmenia for1996-1997";
and
- Amendment of1May1996 toAnnex N1toDecree oftheGovernment oftheRepublic of
Armenia No.615of6December 1993, "OnDetermining theCustoms Duties".
Introductory statements
4. Inanintroductorystatement,therepresentativeofArmeniasaidthatsincedeclaringindependence
from theformer Soviet Union in1991, Armenia hadvigorously pursued freemarket reforms within
ademocratic framework, notwithstanding acute political andeconomic difficulties. Economic decline
hadbeenreflected insharp reductions inoutput, falling incomes, reduced tradeflows, severe shortages
ofenergy, andscarcity offoodandother consumer goods.
5. Despite thisadversity, theGovernment hadpersevered withtheeconomic reform programme,
placingparticularemphasisonliberalization,stabilization,andeconomicrestructuring.Mostagricultural
landwasprivatized shortly afterindependence andprivatization inother sectors wasmoving ahead.
Demonopolization andderegulation hadremoved barriers toprivate sector participation inallbuta
fewareas ofeconomic activity. Price controls wereonlyapplied toalimited number ofessential goods
andservices, andwerebeing phased out.Foreign investment wasencouraged. Onthemacroeconomic
side, stabilization policy wasagovernment priority, given thechallenge ofthedifficult budgetary
position, combined withtheneedtocontain inflationary pressures andmaintain exchange ratestability.
TheGovernment hadsuccessfully brought monthly inflation down toasingle digitlevel, from the
triple-digit levels prevailing attheendof1993. TheGovernment wasstrongly committed tosecuring
asound andstable macroeconomic framework forfuture economic growth anddevelopment.WT/ACC/SPEC/ARM/1/Rev.1
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6. Fullerintegrationintotheworldeconomy,andcontinuingdiversificationofArmenia'seconomic
relations withothercountries, werecentral planks oftheGovernment 'sreform efforts. TheGovernment
ofArmenia believed thatthese objectives could onlybeattained through open trade policies that
emphasized specialization onthebasis ofinternational comparative advantage. Itwasforthisreason
thattheGovernment ofArmenia attached priority toitsaccession totheWorld Trade Organization,
andwished tocomplete negotiations formembership attheearliest opportunity.
7. TheWorkingPartywelcomedArmenia'sapplicationforaccessiontotheAgreementEstablishing
theWTO. Several members oftheWorking Party acknowledged thatArmenia hadundergone arapid
process concerning reform andtrade liberalization which, notwithstanding internal andexternal
difficulties,appearedtobesucceedinginpermittingeconomicgrowth.Thesemembersexpressedsupport
forArmenia 'sintegration intothemultilateral trading system andindicated theirreadiness topursue
thenegotiations inearnest.
II. Economic Policies
- Foreign exchange andpayments
8. Inresponse toquestions from members oftheWorking Party concerning Armenia ’sforeign
exchange currency reserves andtheconvertibility oftheDram, therepresentative ofArmenia stated
thatgross official reserves made upUS$225.7 million asof28October 1997 andcovered about
2.8months ofimports. Gross official reserves hadrisen from 0.7months ofimport cover in1994
to2.3months in1996 andwere planned toriseto3.3months ofimport cover bytheendof1997.
On29May1997,ArmeniahadacceptedtheArticleVIIIoftheInternationalMonetaryFund'sAgreement
andtheobligations implied bySections 2,3and4thereof andhascommitted torefrain fromimposing
restrictions oncarrying outpayments andtransfers, andfrom engaging indiscriminatory currency
arrangementsormultiplecurrencypracticeswithoutIMFapproval.AccordingtotheResolutionNo.141
"OnForeign Exchange Regulation andAdministration ofControl", therewerenorestrictions oncurrent
account operations. After being licensed bytheCentral Bank natural persons andlegalentities were
allowed toactasforeign exchange dealers. TheCentral Bank ofArmenia (CBA) determined thedaily
exchange rateasamidpoint oftheprevious day’sbuying andselling operations inforeign exchange
market (theparticipants offoreign exchange market arethose dealing withover-the-counter market,
stock exchanges, foreign exchange bureaus, etc.). Foreign exchange dealers andbanks were freeto
establish theirownexchange ratesfortransactions. Non-resident banks could beauthorized toparticipate
inthedomestic foreign exchange market onconditions equal tothose setforresident banks. LegalWT/ACC/SPEC/ARM/1/Rev.1
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entities andnatural persons, residents andnon-residents ofArmenia could openandholdtheircurrent
accounts inforeign banks without anyrestrictions. Residents ofArmenia could implement operations
relatedtomovementofcapitalwithoutanyrestrictionsunlessotherwisespecifiedbyCBA.Non-residents
could implement operations related tomovement ofcapital according tothe"Law onForeign
Investments" oftheRepublic ofArmenia noted thatforeign exchange reserves hadrisenfrom0.7months
ofimport cover in1994 to1.5months in1995, andwereprojected toriseto2.3months ofimport
cover bytheendof1996. Allforeign currency surrender requirements hadbeeneliminated andthe
dram wasfreely convertible. There werenorestrictions ontheholding offoreign currency accounts.
Allbilateral clearing arrangements based onbarter hadbeeneliminated.
- Income Tax
9.43Therepresentative ofArmenia stated thataccording totheLawonPersonal Income Taxunified
personal taxrateswiththeratesoftheenterprise profits tax.P,thepersonal income taxwasdetermined
byhowmany multiples oftheminimum wage anindividual ’sincome equalled. Theminimum wage
wassetbythedecision oftheGovernment ofArmenia. Minimum wages were setbyPresidential
Decree. Incomes below oftwotimes theminimum wage orlessweretax-exempt. Taxbrackets were
thendefined interms ofmultiples oftenabove theminimum wage. Thus, fForincomes from two
uptotentimes greater thantheminimum wage, thetaxratewas12percent, formultiples ofthe
minimum wage between tenandtwenty times theratewas18percent,formultiples from twenty to
fortytimes theratewas25percent,andformultiples above fortytimes theratewas30percent.Other
Exemptions from income taxwere receipts from thesaleofprivate property, anyincome received
bypensioners, invalids, veterans, andhandicapped individuals, social security recipients, alimony
payments, students ’stipends, andmilitary service pay.
- Land Tax
10.44Therepresentative ofArmenia added thatthesystem forlevying income taxintheagricultural
sector wasdifferent. Private farmers paidafixed share oftheirincome, currently setat15percent.
Thefewremaining State farms payafixed share oftheirprofits. Intheevent ofadverse agricultural
circumstances, theGovernment byconsent oftheNational Assembly ofArmenia, mayreduce these
liabilities, orexempt farmers altogether fromtaxation. Inresponse toquestions fromWorking Party
members, therepresentative ofArmenia saidthatnodifferentiation wasmade between enterprises on
thebasis ofownership inrelation totaxation intheagricultural sector. BothState farms andprivateWT/ACC/SPEC/ARM/1/Rev.1
Page6
farms paidthesame taxes, which wasestablished attherateof15percentofcalculated netincome
determined bythecadastre value oftheland.Thedifferent system oftaxation fortheagricultural sector
reflected thedesire toimpose alesser taxburden onthesector. Aslongasfarmers didnotderive
more than25percentoftheirincome fromnon-agricultural sources, theywereexempted fromincome
tax.Inaccordance withtheLawonPeasant andCollective Farms, farmers inmountainous, remote
orabandonedcountrysideareasmaybegrantedtaxrelief.Atpresent,taxexemptionswerebeinggranted
tofarmers incertain border areas affected bytheconflict withAzerbaijan.
- Enterprise Profit Tax
11.45Therepresentative ofArmenia stated thattheenterprise profit taxwasimposed onalljuridical
persons operating inArmenia, including foreign enterprises. Corporate taxeswerecharged atthesame
ratesaspersonal income taxes -12percent,18percent,25percent,and30percent. Thestandard
ratesschedule forallenterprises, whether localorforeign, andincluding banks andinsurance companies
were 12percentforannual profits ofupto72,000 drams, 18percentforthenextbracket upto
144,000 drams, 25percentforthebracket upto216,000 drams, and30percentformore than
216,000 drams. Thepossibility ofestablishing asingle corporate taxratewasunder consideration.
Dividend income fromcompany dividends paidoutofafter-tax profits werenottaxed. Newenterprises,
excluding Stateenterprises, wereexempted from profit taxforthefirsttwoyears oftheiroperation.
Jointventures maybeabletosecure additional taxcredits foraperiod ofseven years, depending on
theshare offoreign capital inthestatutory fundoftheenterprise. Taxholidays weregranted topromote
entrepreneurship andbusiness activity inthecountry. Thecredits were setat50percentifforeign
capital comprises halformore oftotalshare capital andisnotlessthanUS$100,000, andat30percent
ifforeign capital accounts for30percentto50percentofthetotal(with aminimum investment of
US$40,000 toUS$100,000). On30September 1997 theNational Assembly ofArmenia adopted the
newLawonProfit Tax,which would enter intoforce on1January 1998. Under thisLaw, theprofit
taxwasimposed onresidents andnon-residents. Residents would beconsidered thejuridical persons
andentities without status ofajuridical person established (State registered) inArmenia. Non-residents
would bethejuridical persons andentities without status ofajuridical person established inforeign
countries ,aswellastheinternational organizations andjuridical persons andentities without status
ofajuridical person established bythese organizations abroad. Fortheresidents theprofit taxwould
becharged ontaxable profit obtained inArmenia andabroad. Fornon-residents theprofit taxwould
becharged ontaxable profit obtained from Armenian sources. Theamount ofprofit taxcharged on
taxable profit would bedetermined according tothefollowing table:WT/ACC/SPEC/ARM/1/Rev.1
Page7
Taxable profit Profit tax
Lessthan7million Drams 15percentoftaxable profit
More than7million Drams 1.05million Drams added to25percentofthe
amount ofprofit exceeding 7million Drams
Theamount oftheprofit tax,charged ontheincome fromorganizing andrunning gambling andlottery
games, would beequal to70percentoftheprofit obtained. Inaddition, thetaxcharged onincome
obtained bynon-residents fromtheArmenian sources would belevied according tothefollowing rates:
Type ofIncome: Rate(%)
Dividends; interests 15
Insurance offsets received inaresult ofinsurance; incomes received from
shipment (freight)5
Royalties; income received from property rent;property value increment and
other passive incomes (except incomes received from shipment (freight)), as
wellasincomes received from other Armenian sources20
Thetaxpayer entities engaged inproduction ofagricultural products would beexempted from the
profit taxpayments, charged onincome obtained after realization ofagricultural products.
Besides, theprofit taxexemptions would begranted tothefollowing Armenian institutions
registered intheTaxInspectorate:
- public andreligious organizations; Armenian political parties;
- condominiums; non-profit organizations, established andoperated exclusively forreligious,
benevolent, scientific, educational purposes, aswellasfortesting forpublic security,
environmental protection, development andpropaganda ofliterature, protection ofconsumer
rights, promotion andorganization ofnon-professional sports, andhuman, women ’s,children ’s
andoldpeople ’srights protection purposes, incaseifany partoftheincome ofthese
organizations wasnotdistributed among theirmembers orother persons andwasusedsolely
forstatutory purposes;
- libraries, museums, secondary schools, boarding schools, oldpeople ’sandchildren ’shomes,
incaseifanypartoftheincome oftheseorganizations wasnotdistributed among theirmembers
orother persons andwasusedsolely forthestatutory purposes.WT/ACC/SPEC/ARM/1/Rev.1
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Ifafter1January 1998, theactual share oftheforeign investor inthestatutory fundoftheresident
enterprises withforeign investments isatleast500million Drams theamount oftheprofit taxlevied
would bereduced by:
- 100percentoftheprofit taxamount forthetwoyears following theinvestment year;
- 50percentoftheprofit taxamount fortheperiod fromthethirduptothetenthyears following
theinvestment year.
Incaseoftermination ofthetaxpayer ’sactivities intheperiod ofprivileges, theamount oftheprofit
taxforthisperiod would becalculated atthefullrateforthewhole period ofactivities.
- Property tax
12.46Therepresentative ofArmenia added thatbytheadoption oftheLawonProperty Taxreplaced
thefixedassets taxwasreplaced bytheproperty tax.Thetaxapplied to:(i)theassets ofallenterprises
asdefined intheLawonEnterprises andEntrepreneurial Activities, unless particular assets wereare
thesubject ofaspecific exemption bytheGovernment; (ii)houses andother dwellings inArmenia
belonging tocitizens andnon-citizens, orleased bythem; (iii)cattle; and(iv)certain vehicles. Arange
ofassets andpersons exempted from thetaxisindicated inArticle 9andArticle 10oftheLaw.
Particularly, allnewly formed enterprises wereexempted fromtaxation during thefirstyearaftertheir
registration. Theproperty usedforagricultural production purposes wasalsoexempted fromtaxation.
Exemptions werealsoforeseen, interalia,certain re-investment andre-tooling expenditures, research
anddevelopmentexpenditures(on50percentofexpenditures),expenditureonenvironmentalprotection
(on30percentofexpenditure), profits usedtocover losses ofjointventures withforeign participation
andforeign enterprises during theprevious fiveyears, andanyenterprise carrying outreconstruction
activity intheearthquake region.
13.47Therepresentative ofArmenia stated thatinaccordance withtheLawonProperty Tax,the
property taxforjuridical persons wasdetermined as0.2-0.8percentoftheaverage annual value
ofthetaxable property, andfornatural persons –0.2percentoftheproperty value exceeding the
amount of850times theminimum monthly wage (0.2percentoftheamount exceeding thenontaxable
partofthecalculated value ofbuildings). theStateenterprise fixedassettaxaimed toensure thatState
enterprises would beliable forsome minimum amount oftax. Thetaxwasimposed bythelaw“On
Property Tax”.Fortheenterprises covered bythislaw,thefixed assettaxwillbereplaced bytheWT/ACC/SPEC/ARM/1/Rev.1
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property tax,andforindividuals thetaxwillbelevied onproperty valued atmore than850times the
minimum wage.
- State ownership andprivatization
14.9 Inresponse torequests forinformation concerning theprivatization ofStateowned assets, the
representative ofArmenia noted thataPrivatization Programme wasadopted inJanuary 1994. All
natural andlegalpersons areentitled toparticipate intheprivatization programme. Thatprogramme
envisaged thatprivatization would takethree years, withonethirdofState-owned productive assets
being privatized eachyear. Those targets proved over-ambitious, andprivatization wasnowexpected
tocontinue atleastuntiltheendof1997. Atthebeginning oftheprogramme (1994-1995), theState
owned anestimated 5,000 small enterprises andabout 2,000 medium- tolarge-scale enterprises that
wereplanned tobeprivatized. Thetarget ofthe1996-97 programme wastheprivatization of4,927
entities (including small enterprises), ofwhich 347areinindustry, 183intransportation, 112in
construction, 16intelecommunications, 432inagriculture, 7inthematerial andtechnical (logistic)
supply sector, 1820 inthedistribution sector, 763inthehousehold services sector, 194inthepublic
utilities sector, 485inthesocial sector, 5inautomobile maintenance sector, 46inthenatural deposits
sector,and122enterprisesand395unfinishedunitsofhousingconstructionintheYerevanMunicipality.
Bythemiddle ofSeptember 1997, 1,177 medium andlarge enterprises and5,301 small enterprises
hadbeenprivatized.Thetablebelowrepresentedmoredetailedinformationonprocessoftheprivatization
inArmenia from 1994 to1997. Therepresentative ofArmenia further noted thatthesaleofsome of
the10large State-owned firms toforeign investors through international tender wereinprocess with
theparticipation ofaforeign company. International tenders, supposed tobefinished byNovember
1997, hadbeensuspended partly duetotheincreasing interest offoreign investors inthose firms. The
situation byNovember 1997 wasasfollows:
(i) Nairit Research Production plant hadtobeprivatized through international tender
(Resolution 197,24June1997)
(ii) Plant Sapphire (thestateshare -65percent)wasincluded inthe1996-1997 privatization
programme
(iii) Yerevan Cabel Company hadbeenprivatized
(iv) Gyumry Socks factory hadbeenprivatized
(v) Zangezur Copper -Molybdenum Enterprise wasnotsubject toprivatization
(vi) Yerevan Automobile Production plant hadbeenprivatizedWT/ACC/SPEC/ARM/1/Rev.1
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(vii) Yerevan Jewellery plant wasincluded inthe1996-1997 privatization programme.
(viii) ArmenmotorCompany(theStateshare-70percent)wasincludedinthe1996-1997privatization
programme
(ix) Yerevan Electrolamp plantwastobeprivatized through international tender (Resolution 202,
24June1997)
(x) Armelectromachine plant wasincluded inthe1996-1997 privatization programme.
Thefollowing State-owned largefirms alsoweresubject tosalethrough international tender: Yerevan
Shoe factory "Araks", "Mars" factory, "Hotels Armenia 1,2", "Ani" and"Dvin", Yerevan Brandy
plant, "Rubin" factory inVanadzor, Fibre Chemical factory inVanadzor. Privatization ofsmall-scale
enterprises waswellunder way. Bythebeginning ofMarch 1996, 2187 small enterprises hadbeen
privatized. Privatization ofmedium- tolarge-scale enterprises wasalsowellunder way,although the
ambitiousend-1995targetof900enterprisesprivatizedwillbeachievableonlyin1996.Bythebeginning
ofMarch 1996, 365enterprises hadbeenoffered forsale. Thetarget ofthe1996-97 programme was
theprivatization of3809entities, ofwhich 195areinindustry, 22intransportation, 82inconstruction,
3intelecommunications, 70inagriculture, 3inthematerial andtechnical (logistic) supply sector,
1763inthedistribution sector, 760inthehousehold services sector, 191inthepublic utilities sector,
236inthesocialsector,5inautomobilemaintenance,16inthenaturaldepositssector,and66enterprises
and395unfinished units ofhousing construction intheYerevan Municipality.WT/ACC/SPEC/ARM/1/Rev.1
Page11Information ontheProgress ofthePrivatization ofState Enterprises by15September 1997
Open stock
companiesClosed stock
companiesSaleofassets
tothelesseeAuctions Tenders International
tendersCompanies
dissolvedIn1997 Total Unfinished construction
sites
Evaluations made 586 1702 175
Government ’s
decision1206 152 137 23 41 16 4 583 1579 474
Total: ofwhich 1137 152 137 23 38 16 1503 31
Privatization in
process15 14 9 5 16 59
Privatization
suspended230 22 8 7 217 267 23
Privatization
finished892 116 128 15 26 325 1177 8
Total: ofwhich 1137 152 23 38 1503 31
Industry 321 41 4 2 368
Agriculture 323 35 9 3 370
Cityconstruction 130 5 12 147
Culture 26 7 33
Trade andservices 37 6 2 45
Transportation 19 10 29
Communication 10 2 12
Health 0 5 5
Others 20 5 9 34
Evaluations made Privatized 1994-1997 Privatized through auction Subject tosalethrough auction
Small enterprises 7223 5301 188 573
Paid
(thousand drams)
Totalofwhich bycertificates bydrams Number ofcertificates
paidofwhich in1997 by
certificates(thousand drams)
bydrams
Medium tolarge enterprises 35082916.4 34893460 189456.4 1744673 7978180 1929.4
Unfinished construction site 89568 88800 768 4440 73820 748
Small enterprises 19156172.7 18959980 196192.7 985478 5732900 30666.4
Total 54328657.1 53942240 386417.1 2734591 13784900 33343.8WT/ACC/SPEC/ARM/1/Rev.1
Page12
15.10 TherepresentativeofArmeniaaddedthattheGovernmentcontinuedtoseekwaysofaccelerating
theprivatization programme. Thetimelimithadbeenshortened toonemonth fortheinitiation of
second stage andthird stage actions forenterprises, which hadnotbeensoldinprevious attempts.
Inaddition, mandatory liquidation followed foranyenterprises thatthereafter remained unsold. The
Government wasnowentitled tosellaportion ofenterprises formoney alone (rather thanmoney and
vouchers). TheGovernment hadgreater flexibility indeveloping methods forprivatizing morecomplex
entities, suchasutilities. Theresponsibilities andstructure ofthePrivatization Commission havebeen
streamlined, andinformation publication requirements simplified. Thecentralized share registry has
alsobeenmade operational.
16.11 Inresponsetoafurtherquestion,therepresentativeofArmeniastatedthatArmeniahadprivatized
almost 90percentofagricultural landandmade landtitles freely transferable. Thesmall share of
landstillinStatehands isreserve landandlandusedforcertain kinds ofagricultural support activities
described inparagraphs 101-103 below. TheGovernment ofArmenia didnothaveatimetable for
theprivatization ofagricultural landstillinState hands.
17. Therepresentative ofArmenia confirmed thattoensure fulltransparency andtokeepWTO
members informed ofitsprogress inthereform ofitstransforming economic andtraderegime, Armenia
would provide annual reports toWTO Members ondevelopments initsprogramme ofprivatization
along thelinesoftheinformation provided totheWorking Party, andontheother issues related to
itseconomic reforms asrelevant toitsobligations under theWTO. [TheWorking Party tooknote
ofthiscommitment.]
- Investment regime
18.86Therepresentative ofArmenia stated thatthe1994 LawonForeign Investments regulated
Armenia’spoliciestowardsforeigninvestment.TheLawwasdesignedtoattractinvestmentfromforeign
sources. Itprovided guarantees against nationalization andprovided thatconfiscation could onlytake
place following ajudicial decision. Intheunlikely event ofconfiscation, fullcompensation would
bepayable. Foreign investors were indemnified against damages resulting from illegal actions by
Government, orfrom theimproper performance byGovernment ofitsobligations (asdetermined in
aCourt ofLaw). TheLawalsoguaranteed investors therighttorepatriate profits andassets without
hindrance. Intheevent thatforeign investment legislation waschanged afteraninvestment hasoccurred,
theinvestor concerned wasentitled toanexemption from anylessfavourable provisions during a
five-year period.WT/ACC/SPEC/ARM/1/Rev.1
Page13
19.87Therepresentative ofArmenia further noted thatafter1January 1998thefollowing measures
willmodify theprofit taxlevied forforeign investors. Iftheshare offoreign investors inthestatutory
fundisatleast500million drams, theprofit taxofenterprises withforeign investments willbereduced
by:
- 100percentoftheprofit taxamount forthe2years following theyearofinvestment;
- 50percentoftheprofit taxamount from thethirdtothetenth years following theyearof
investment.
Incaseoftermination oftheenterprises withforeign investments intheperiod ofthese 10years, the
profit taxfortheprivileged period would becalculated atfullamount forthewhole period oftheir
activity. Enterprises withanyforeign ownership hadbeenentitled toindefinite duty-free treatment
onalltheirimports ofcapital equipment andrecurrent inputs. According totheDecree No.124the
privileges forforeign investors onthelicensing oftheproducts forimport andexport activities were
exempted, andthefollowing procedure established: thenon-tariff regulations oftheunified system
ofexport andimport ofgoods andservices wasextended toalleconomic entities oftheRepublic of
Armenia, irrespective oftheform ofownership andtheplace ofregistration. foreign enterprises or
jointventures comprising atleast30percentofinvested capital, allprofits werefreeoftaxes fortwo
years, andafterthatprofits taxwascharged at70percentofthefullrate. Forenterprises withat
least50percentforeign ownership, profits taxeswerecharged atonly50percentofthefullrateafter
theinitial grace period. Enterprises withanyforeign ownership atallwereentitled toindefinite duty-free
treatment onalltheirimports ofcapital equipment andrecurrent inputs. Inaddition, foreign enterprises
(defined asthose withatleast30percentforeign ownership) werealsoentitled tocertain exemptions
fromimportandexportlicensingrequirements.Foreigninvestorswerefreetochoosetheirowninsurers.
Noinvestment performance requirements aremaintained. There were norequirements forforeign
investors toexport acertain amount ofproduct, andtheGovernment didnotintend tointroduce any
suchrequirements. Foreign investors received fullnational treatment.
20. Therepresentative ofArmenia stated thatanyrestrictions oninvestment weregenerally applied
onanon-discriminatory basis asbetween national andforeign investors. BytheConstitution ofthe
Republic ofArmenia theforeign citizens andpersons without citizenship didnothavetherighttoown
land.WT/ACC/SPEC/ARM/1/Rev.1
Page14
- Pricing policies
21.12Inresponse torequests foranupdate ontheprogress ofprice reform, therepresentative of
Armenia stated thatsince 1995, almost allgovernment-mandated price controls hadbeenremoved.
Theonlydomestic prices thatwerestillsubject tocontrol werethose forirrigation, urban electrical
transport, electricity, hotwater, gas,heating, sewage services, garbage collection, rentinState-owned
housing, andtelephone services. Those prices were stillsubject tocontrol because State-owned
enterprises weretheexclusive ordominant suppliers. Alladministered prices wereadjusted onaregular
basis tomaintain theirrealvalue. Theonlyremaining direct price control wasonflour(through the
setting ofmaximum profit margins forflourmills). Minimum export prices wereinplace forferrous
andnon-ferrous metal scrap, butonlyforthepurpose ofcalculating thecorporate taxliabilities of
enterprises dealing inthese scrap metals.
22.13Therepresentative ofArmenia added thatsubsidies onbread, municipal electric transport and
garbage collection, andcross-subsidies onwater andsewerage hadbeeneliminated. Thesubsidies
ondistrict heating andhotwater (theonlyremaining consumer subsidies) wereunder review. Inthe
caseofdistrict heating, which lessthanone-third ofhouseholds actually receive, theissueofprovision
oftargeted heating subsidies tovulnerable groups would beresolved aspartoftheoverall reform of
social assistance.
23.14Therepresentative ofArmenia confirmed thatasofthedateofaccession price controls on
productsandservicesinArmeniahavebeeneliminatedwiththeexceptionofthoselistedinparagraphs21
and22ofthisreport, andthatintheapplication ofsuchcontrols, andanythatareintroduced orre-
introduced inthefuture, Armenia willapply suchmeasures inaWTO-consistent fashion, andtake
account oftheinterests ofexporting WTO members asprovided forinArticle III:9oftheGATT 1994.
Healsoconfirmed thatthegoods andservices listed inparagraph 21and22hadbeenpublished in
theGovernment ’sofficial newspaper andanyproducts subject toState price controls inthefuture,
including anychanges intheinitial listreported atthetimeofaccession, would bepublished inthe
official newspaper. [TheWorking Party tooknoteofthiscommitment.]
Some members oftheWorking Party requested thattheGovernment ofArmenia enter acommitment
thatasofthedateofaccession totheWTO, theonlyprice controls ongoods andservices inforce
inArmenia would bethose listed inAnnex ...totheProtocol ofAccession. Some members ofthe
Working Party alsorequested thattheGovernment ofArmenia enteracommitment thatallpricecontrols
inforce atthedateofitsaccession, oranyprice controls introduced inthefuture would beappliedWT/ACC/SPEC/ARM/1/Rev.1
Page15
consistently withtherequirements oftheWTO Agreement. Inaddition, anyapplication ofpricecontrols
would takeaccount oftheobligation inArticle III.9oftheGATT 1994, andthattheGovernment of
Armenia would publish thegoods andservices subject toprice controls initsofficial newspaper.
III. Framework forMaking andEnforcing Policies
- Powers ofexecutive, legislative andjudiciary, administration ofpolicies onWTO-related
issues
24.15Therepresentative ofArmenia saidthattheexecutive branch ofGovernment intheRepublic
ofArmenia comprises thePresident oftheRepublic, thePrime Minister andMinisters. ThePresident
oftheRepublic isthehighest executive authority. ThePresident oftheRepublic appointed thePrime
Minister. Themembers oftheGovernment were appointed bythePresident oftheRepublic upon
recommendationofthePrimeMinister.ThePrimeMinisterrecommendedtheappointmentofMinisters,
which must beapproved bythePresident. ThePrime Minister wasresponsible fortheday-to-day
running oftheGovernment, andpresides overtheCabinet. ThePresident oftheRepublic waselected
bypopular voteevery fiveyears. Withtheexception offiscal matters, thePresident wasempowered
toissuedecrees andorders make andsigndecrees without theauthorization ofParliament. Resolutions
weregenerally signed bythePrime Minister andtheresponsible Minister, andmayrequire presidential
approval. Administrative orders weresigned byMinisters. According tothenewConstitution ofthe
Republic ofArmenia, adopted in1995, theNational Assembly adopted lawssubmitted foritsapproval
bytheExecutive Branch ofGovernment. Suchlawsenterintoforce afterratification bythePresident
oftheRepublic. Thisprocedure applied toalllegislative amendments, including those relating tothe
establishment oralteration oftariffs andtaxes. AnyDecree orResolution withfiscal implications, such
aschanges intariffrates, mustbeapproved bytheParliamentary Permanent Financial Credit, Budgetary
andEconomic Commission, which ispresided overbyaMember ofParliament.
25.16Therepresentative ofArmenia alsosaidthatthelegislature oftheRepublic ofArmenia isthe
NationalAssembly,orParliament,whichcomprises131190deputies.Deputieswereelectedbypopular
voteevery fouryears. TheNational Assembly, under theauthority andguidance ofitsChairman,
wasresponsible forapproving alllawsandinter-governmental agreements.
26.17Therepresentative ofArmenia saidthatinconformity withtheConstitution oftheRepublic
ofArmenia, thejudiciary wasindependent oftheexecutive andlegislative branches. TheCourts of
general competence were theCourts ofFirstInstance, theReview Courts andtheCourt ofAppealsWT/ACC/SPEC/ARM/1/Rev.1
Page16
Supreme Court. Appeals areheard bytheSupreme Court, andtheSupreme Court alsoacted asa
Court oforiginal jurisdiction incertain matters. Theguarantor oftheindependence ofjudicial bodies
wasthePresident oftheRepublic, whowasHead oftheCouncil ofJustice. TheMinister ofJustice
andtheProcuratorGeneralweretheDeputyHeads.TheConstitutionalCourt,comprisingninemembers,
wasresponsible, among other things, forensuring theconstitutionality ofdecisions oftheNational
Assembly, decrees ofthePresident, Resolutions oftheGovernment, andtreaties entered intobythe
Republic ofArmenia.
27.18Therepresentative ofArmenia saidthattheConstitution oftheRepublic ofArmenia contains
transitional provisions, which werecurrently inforce, pending theestablishment ofthejudicial system
defined bytheConstitution. Thenewsystem provides forthecreation ofeconomic courts, butthese
didnotexistunder thepresent arrangements. According tothepresent arrangements, alleconomic
disputes between legalpersons oftheRepublic ofArmenia andthose ofother countries, including the
CIS,werereferred totheStatearbitration court andappealed tothearbiter, whose decision wasfinal.
Disputes between legalpersons andindividual citizens were referred topeople 'scourts andmaybe
appealed totheSupreme Court oftheRepublic ofArmenia. Thelatter'sverdict maybeappealed at
thePlenary Session oftheSupreme Court, which makes thefinaldecision. Neither theexisting
provisional arrangements, northepermanent arrangements setoutintheConstitution, contemplate
differential treatment between CISandnon-CIS legal persons. Atthesame timetherespective
CommitteesoftheNationalAssembly,aswellastheinterestedministriesandagenciesoftheGovernment
oftheRepublic ofArmenia wereelaborating theCodes andLaws necessary fortheimplementation
ofthejudiciary system. Thebulkofthese provisions werescheduled tobeadopted bytheendofthe
firsthalfof1988. Economic litigation inparticular shallbehandled through theCriminal Procedure
andtheCivil Procedure Codes under preparation.
Therepresentative ofArmenia saidthatasystem ofState arbitration oreconomic Courts existed in
parallel tothenational Courts system. Disputes under thissystem wereresolved onaninformal basis
through binding arbitration. Thejurisdiction oftheeconomic Courts covered disputes between juridical
persons intheRepublic ofArmenia, although when adispute involved aforeigner from outside the
Commonwealth ofIndependent States (juridical ornatural person) thecasewasheard inthenational
Courts andnotintheeconomic Courts system.
28.19Therepresentative ofArmenia added thataccording tothechanges inthestructure ofthe
Government inmid1997, theMinistry oftheIndustry andTrade hadprimary responsibility inmost
aspects ofpolicy affecting international trade ingoods andservices. TheMinistry ofFinance andWT/ACC/SPEC/ARM/1/Rev.1
Page17
Economy hadoverall responsibility forfiscal policy, butdecisions ontariffs weremade together with
theMinistry ofIndustry andTrade. When theimplementation ofthefiscal policy required the
introduction ofamendments inthelawsineffect ortheadoption ofnewlaws, theGovernment ofthe
Republic ofArmenia mustsubmit therelevant legislative proposal totheNational Assembly, forits
approval. Therepresentative ofArmenia added thattheMinistry oftheEconomy hadprimary
responsibility inmostaspects ofpolicy affecting international tradeingoods andservices. TheMinistry
ofFinance hadoverall responsibility forfiscal policy, buttariffs were proposed bytheMinistry of
theEconomy. Allfiscal policy mustbeapproved bytheParliamentary Permanent Financial Credit,
BudgetaryandEconomicCommission.TheCentralBankwasresponsibleformonetarypolicy,exchange
ratepolicy andthebanking system. Within thestructure oftheMinistry ofIndustry andTrade the
Armenian Patent Office wasresponsible forindustrial property protection matters, andtheArmenian
National Copyright Agency forcopyright protection.
29.20TherepresentativeofArmeniasaidthatinmattersofpolicyaffectingtradeingoodsandservices,
theCentral Government retained fullauthority. Local administration bodies hadnojurisdiction
whatsoever inestablishing taxesorregulations pertaining togoods andservices. Within theframework
oftheprocess ofArmenia 'saccession totheWTO, theobligations assumed bytheGovernment of
theRepublic ofArmenia weresubject toimplementation throughout theRepublic ofArmenia. Under
thenewConstitution, theConstitutional Court wasrequired toensure compliance oftheprovisions
oftheWTO Agreement, asaninternational treaty, withtheConstitution oftheRepublic ofArmenia.
Ifnorms wereprovided inthese treaties other thanthose provided bythelawsoftheRepublic, then
thenorms provided inthetreaty shallprevail. International treaties thatcontradicted theConstitution
mayberatified aftermaking acorresponding amendment totheConstitution.
30. Therepresentative ofArmenia confirmed thatfollowing signature andratification ofaccession
allWTO Agreements would directly havetheauthority oflawwithin theRepublic ofArmenia and
thelawsandlegislativeinstrumentsnecessaryfortheapplicationoftheprovisionsoftheabove-mentioned
agreements would beadopted within sixmonths following suchratification. Inthiscontext, the
representative ofArmenia noted thatfollowing signature andratification oftheWTO Agreement, the
WTOAgreementwouldbecomedomesticlawinArmeniaandwouldhavepriorityoverallotherdomestic
laws. [TheWorking Party tooknoteofthese commitments.]WT/ACC/SPEC/ARM/1/Rev.1
Page18
IV. Policies Affecting Trade inGoods
- Market Access Negotiations
31.21Armenia undertook negotiations onmarket access ingoods withinterested members ofthe
Working Party. TheSchedule ofConcessions andCommitments resulting from those negotiations
isAnnex ItotheAppendix oftheDraft Protocol ofAccession ofArmenia.
- Import Regulations Registration requirements
32.22TherepresentativeofArmeniainformedtheWorkingPartythatwithcertainexceptionsnecessary
tosafeguard human, animal andplanthealth andtheenvironment, theformer Statemonopoly inforeign
tradeinArmenia wasabolished in1989,and wasreplaced byaregistration requirement fortheconduct
ofsuchactivity. Enterprises orprivate entrepreneurs engaging intrading (including importation) were
required toberegistered intheStateRegister ofEnterprises. ByaDecree ofthePresident oftheRepublic
ofArmenia of4January 1992 entitled OnForeign Economic Activity, allenterprises orbranches,
subsidiaries andrepresentations thereof registered andoperating intheterritory ofArmenia, regardless
oftheirformofownership, weregranted therighttoconduct foreign economic activity without any
additional registration requirements. Thestateregistration ofenterprises andprivate entrepreneurs in
theRepublic ofArmenia, aswellastheprocedure andconditions fortheuseofinformation provided
through theregistration process were defined intheLaw onState Register ofEnterprises of
2September 1993. Thefounder(s) ofanenterprise, inaccordance toArticle 12oftheLawonState
RegisterofEnterprises,shouldsubmittoalocaldivisionoftheStateRegisterofEnterprisesthefollowing
documents: theapplication oftheperson(s) founding theenterprise, thefounding documents drawn
upincompliance withthelegislation oftheRepublic ofArmenia, andifneeded, thelicence toengage
inthetypeofactivity inquestion, towhich effect anentry ismade intherecord log.Upon the
verification ofsubmitted documents theinformation required byArticle 11ofthesamelawwasentered
onaState registration cardandforwarded tothecentral body oftheState Register forthepurpose
ofuniform codification, granting ofStateregister number andissuing acertificate ofStateregistration.
Inthecasewhen anyalterations andadditions weremade inthefounding instruments oftheenterprise,
itwasnecessary toundergo current Stateregistration, which required submission ofrelevant documents
concerning changes. Natural persons werepermitted toimport limited quantities ofitems intoArmenia
forpersonal usewithout registration, although forasalethereof theymust beregistered assole
entrepreneurs. Individual entrepreneurs could conduct business operations following registration in
accordance withArticle 4oftheLawonState Register ofEnterprises. Inorder toconduct economicWT/ACC/SPEC/ARM/1/Rev.1
Page19
activity intheterritory oftheRepublic ofArmenia theimporter wasrequired toestablish branches,
subsidiaries, representations orcreate jointventures registered intheState register oftheRepublic
ofArmenia. Noregistration wasrequired inArmenia foranyenterprise operating from outside the
national territory asanexporter toArmenia.
33. Therepresentative ofArmenia confirmed thattheformer State monopoly inforeign trade in
Armenia hadbeenabolished andthatnorestrictions ontherightofforeign anddomestic individuals
andenterprises toimport andexport goods andservices within Armenia ’scustoms territory existed,
except asprovided forinWTO Agreements; thatindividuals andfirms were notrestricted intheir
ability toimport orexport based ontheirregistered scope ofbusiness; andthatthecriteria forregistration
ofcompanies inArmenia were generally applicable andpublished officially andgenerally available
totraders fortheirreview. [Inaddition, theGATT 1994 principles ofnational treatment andmost
favoured nation status werefullyobserved inrelation toboththeregistration forandthecarrying on
ofbusiness activities byforeigners inArmenia]. anyperson could engage intheimportation ofgoods
intoArmenia. Enterprises orsoleentrepreneurs engaging intrading mustberegistered intheState
Register ofenterprises. [TheWorking Party tooknoteofthese commitments.]
- Customs tariff
34.23Therepresentative ofArmenia stated thattheLawonCustoms Tariffs andtheCustoms Code,
approved byParliament inAugust 1993, provided slegislative authority forsetting tariffs anddealing
withcustoms matters. Alterations totheTariff were required tobeapproved bytheParliamentary
Permanent Financial Credit, Budgetary andEconomic Commission. Decree No.615issued bythe
Government inDecember 1993 introduced newcustoms duties, andthese werefurther modified by
Decree No.224issued inMay1994 andbyDecree No.39issued inJanuary 1995. According tothe
newConstitution oftheRepublic ofArmenia, adopted in1995, thealterations totheTariff wererequired
tobeapproved bytheNational Assembly uponpresentation oftheParliamentary Permanent Financial
Credit, Budgetary andEconomic Commission. TheLawonCustoms Tariffs Rates, adopted bythe
National Assembly inApril 1997, introduced thenewlistofcustoms duties, which were nowin
operation. Thelatest rectification oftheLawonCustoms Tariffs wasaccomplished bytheadoption
oftheLawonAmendments totheLawonCustoms Tariffs inSeptember 1997. Armenia hadbeen
using theHarmonized System ofCommodity Classification since 1991.WT/ACC/SPEC/ARM/1/Rev.1
Page20
35.24Therepresentative ofArmenia saidthatcustoms tariffs wereexpressed inadvalorem terms
andlevied onc.i.f.values. Atpresent, 195items werespecified inArmenia ’stariffschedule, reflecting
thefactthatmajority ofproduct categories identified atthetwo-digit leveloftheHarmonized System
carried thesame rateofduty. Only 132items were identified inArmenia ’stariff schedule because
nearly allproduct categories identified atthetwo-digit levelontheHarmonized System carried the
same rateofduty. Inresponse toquestions fromWorking Party members concerning thepossibility
ofdisaggregating thetariff tothefourorgreater digitlevel, therepresentative ofArmenia stated that
asaresult ofongoing disaggregation theformer number of132items hadbeenincreased uptothe
present number of195.Therepresentative ofArmenia further added thatifitproved necessary the
Government ofArmenia would continue disaggregating itstariffschedule fromitspresent level. After
adoption ofthenewLawonCustoms Tariffs Rates theprevious system offivetariffrateswasterminated
andonlytwotariff ratesremained -zeroand10percent. More thanfiftypercentoftheitems in
thetariff schedule weresubject todutyrateofzero(98items) withremaining 97items subject to10
percentdutyrate.Aftertakingaccountoftariffexemptions(e.g.forhumanitariansupplies,etc.)together
withzero-rated items, theweighted average tariffwasbelow 5percent. Tariff revenue wasprojected
toaccount forabout 10.7percentoftheGovernment 'stotaltaxcollections andabout 7.4percent
ofthetotalbudget revenue in1998 responded thatifitproved necessary theGovernment ofArmenia
would disaggregate itstariffschedule fromitspresent twodigitHSlevel. There werefivetariffrates-
zero, 5percent, 10percent, 30percent, and50percent. More than90percentoftheitems in
thetariff schedule weresubject todutyratesofzero(86items) or10percent(36items). Only five
items weresubject toa30percentrate(certain luxury foods, certain confectionery, furclothing, furs,
andgaming machines). Onlytwoluxury products (caviar andpetfoods) weresubject toa50percent
rate. After taking account oftariff exemptions (e.g.forhumanitarian supplies) andzero-rated items,
theweighted average tariff waswellbelow 5percent. Tariff revenue accounted forabout 2percent
oftheGovernment 'stotaltaxcollections in1994. Tariff rateschanges were recommended bythe
Government,butasafiscalmeasure,theywererequiredtobeconfirmedbytheParliamentaryPermanent
Financial Credit, Budgetary andEconomic Commission.
25 Following negotiations withWTO members andfurther amendments toArmenia 'stariff, the
representative ofArmenia informed theWorking Party thatthere were nowonlytworatesofduty
applied; zeroand10percent. Inparticular, theGovernment ofArmenia would impose aceiling
tariffbinding atauniform advalorem rateof15percentforbothindustrial andagricultural products.;
andtobindatalevelof0percenttheimport tariff forthefollowing product groups:
agricultural equipment (CNcode: 8432-8434, ex8701.90) applied 0%,except 8701.90 -10%;WT/ACC/SPEC/ARM/1/Rev.1
Page21
constructionequipment(CNcode:8425,8426,8428-8430,ex8431,8479.10,8701.30,8704.10)applied
0%,except 8701.30 -10%;
medical equipment (CNcode: 2844.40, 3822, 8419.20, ex8419.90, ex8543.80, 8713, 8714.20, 9018,
9019, 9021, 9022.11, 9022.19, 9022.21, ex9025.11, 9402) applied 0%,except 3822, ex8543.80,
8714.20 -10%;
pharmaceuticals (CNcode: 2936, 2937, 2939, 2941, 30)applied 0%;
paper (CNcode: 47,48)applied 0%;
steelandarticles ofsteel(CNcode: 7206.10, 7207-7229, 7301, 7302excluding 7302.30.00, 7303-7306,
ex7307.22, ex7307.92, 7308, 7312-7314,7317) applied 0%;
distilled spirits (CNcode: 2208.30) applied 10%;
non-ferrous metals (CNcode: 74-80) applied 0%ofwhich 7417, 7418, 7615, 7616 -10%;
scientific instruments (CNcode: 90011000-90015000, 90019040-90019060, 90019080, 90019090,
90021140,90021180Y,90021180Z,90021900,90022040,90022080,90029020,90029040,90029070,
90029090Y,90029090Z,90031100,90031900,90039000,90041000,90049000,9018.90,9023,9024,
902520, 90252040, 90252080, 902580, 90258010-90258050, 902590, 90259000, 9026, 90261020,
90261040, 90261060, 90262040, 90262080, 90268020, 90268040, 90268060, 90269020, 90269040,
90269060, 9027, 90271020, 90271040, 90271060, 90272040, 90272080, 90273040, 90273080,
90274000, 90275040, 90275080, 90278040, 90278080, 90279020, 90279040, 90279060, 90279080,
9028, 9030, 9030.39, 9031, 9032) applied 0%; and,
wood andarticles ofwood (CNcode: 44)applied 0%,except 4414, 4419, 4420, 4421 -10%;
26 Hefurther added thatforchemical products, according totheratesdetermined inthechemicals
harmonization list,Armenia 'sapplied tariffs werecurrently below theharmonization levels. Therates
would either remain thesame orwould befurther reduced. TheGovernment ofArmenia would also
bindimport tariffs forthefollowing product groups:
inorganic chemicals (CNcode: 28)-5.5% (applied 0%);
organic chemicals (CNcode: 2901-2902) -0%(applied 0%),(CNcode: 2903-2915 excluding 2905.43
and2905.44) -5.5% (applied 0%), (CNcode: 2916-2942) -6.5% (applied 0%);
pharmaceutical products (CNcode: 30)-0%(applied 0%);
fertilizers (CNcode: 31)-6.5% (applied 0%);
tanning anddyeing extracts (CNcode: 32)-6.5% (applied 0%);
essentialoilsandresinoids(CNcode:33excluding3301)-6.5%(applied0%,except3303-3306-10%);
soap, washing preparations, candles andsimilar articles (CNcode: 34)-6.5% (applied 10%, except
3401, 3402, 3406 -0%);WT/ACC/SPEC/ARM/1/Rev.1
Page22
albuminoidal substances (CNcode: 35excluding 3501-3505) -6.5% (applied 0%);
explosives (CNcode: 36)-6.5% (applied 0%,except 3604 -10%);
photographic orcinematographic goods (CNcode: 37)-6.5% (applied 10%);
miscellaneous chemical products (CNcode: 38)-6.5% (applied 10%); and
plastics andarticles thereof (CNcode: 39)-6.5% (applied 0%,except 3924 -10%).
27 Concerning products related totradeincivilaircraft, therepresentative ofArmenia stated that
theGovernment ofArmenia would binditstariffs atalevelof0percent. forthefollowing product
groups: 391721-391723, 391729, 391731, 391733, 391739, 391740, 400829, 400950, 401130,
401210, 401220, 401610, 401693, 401699, 401700, 450490, 482390, 681290, 681310, 681390,
700721, 730431, 730439, 730441, 730449, 730451, 730459, 730490, 730630, 730640, 730650,
730660, 731210, 731290, 732290, 732410, 732490, 732620, 741300, 760810, 760820, 810890,
830210, 830220, 830242, 830249, 830260, 830710, 830790, 840710, 840890, 840910, 841111,
841112, 841121, 841122, 841181, 841182, 841191, 841199, 841210, 841221, 841229, 841231,
841239, 841280, 841290, 841319, 841320, 841330, 841350, 841360, 841370, 841381, 841391,
841410, 841420, 841430, 841451, 841459, 841480, 841490, 841581-841583, 841590, 841810,
841830, 841840, 841861, 841869, 841950, 841981, 841990, 842119, 842121, 842123, 842129,
842131, 842139, 842410, 842511, 842519, 842531, 842539, 842542, 842549, 842699, 842810,
842820, 842833, 842839, 842890, 847110, 847120, 847191-847193, 847989, 847990, 848310,
848330, 848340, 848350, 848360, 848390, 848410, 848490, 850120, 850131-850134, 850140,
850151-850153, 850161-850163, 850211-850213, 850220, 850230, 850240, 850410,
850431-850433, 850440, 850450, 850710, 850720, 850730, 850740, 850780, 850790, 851031,
851110, 851120, 851130, 851140, 851150, 851180, 851680, 851810, 851821, 851822, 851829,
851830, 851840, 851850, 852090, 852110, 852290, 852510, 852520, 852610, 852691, 852692,
852790, 852910, 852990, 853120, 853180, 853910, 854380, 854390, 854430, 880110, 880190,
880211, 880212, 880220, 880230, 880240, 880310, 880320, 880330, 880390, 880520, 900190,
900290, 901410, 901420, 901490, 902000, 902511, 902519, 902520, 902580, 902590, 902610,
902620,902680,902690,902910,902920,902990,903010,903020,903031,903039,903040,903081,
903089, 903090, 903180, 903190, 903210, 903220, 903281, 903289, 903290, 910400, 910990,
940110, 940320, 940370, 940510, 940560, 940592, 940599 (applied 0%,except 450490, 681290,
681390, 851031, 851810, 851821, 851822, 851829, 851830, 851840, 851850, 852090, 852110,
852290, 852790, 852910, 852990, 910400, 940110, 940320, 940370, 940510, 940560, 940592,
940599 -10%).WT/ACC/SPEC/ARM/1/Rev.1
Page23
36.28 Therepresentative ofArmenia stated thattheratesofcustoms dutywould notbeincreased
beyond levels bound inArmenia ’sWTO Schedule ofConcessions, which isannexed totheProtocol
ofAccession ofArmenia. [TheWorking Party tooknoteofthiscommitment.]
- Other duties andcharges levied onimports
37.29 Therepresentative ofArmenia informed theWorking Party thatthere werenoother duties
andcharges levied onimports except thefeesforservices rendered byCustoms agencies described
inparagraphs 40-43 below. [Therepresentative ofArmenia stated thatArmenia would bindallduties
andcharges, otherthanordinary customs duties, inArmenia 'sWTO Schedule ofConcessions, annexed
totheProtocol ofAccession ofArmenia.]
- Tariff ratequotas, [tariff exemptions]
38.30Therepresentative ofArmenia stated thatArmenia didnotapply [anyimport quotas, including]
tariff ratequotas. Therepresentative ofArmenia confirmed thathisGovernment hadnoplans to
introduce [import quotas, including] tariff ratequotas. [Ifanysuchquotas weretobeintroduced they
wouldbeconsistentwiththerelevantWTOprovisions,suchasArticlesXXandXXIoftheGATT1994.
Therepresentative ofArmenia confirmed thatArmenia would abide byArticle VIIIoftheGATT 1994
andbytheAgreement onImport Licensing Procedures inorder tosimplify procedures forimports
andexports.]
- Tariff exemptions
39.31 Therepresentative ofArmenia stated thatalltariff exemptions other thanthose granted inthe
context offreetradeareaagreements weregranted onaMFN basis. Suchtariffexemptions weregranted
inrespect ofthefollowing:
- essential equipment imported byforeign enterprises andjointventures (with atleast30percent
foreign ownership) anddesignated forasupplement ofenterprises ’statutory funds;
- goods intransit through Armenian territory;
- trucks andvehicles, regularly operating asfreight andpassenger carriers through theArmenian
territory, aswellasfuel,food, tools andother minor items necessary fortemporary useto
perform these operations;
- foreign exchange, bonds andother securities;WT/ACC/SPEC/ARM/1/Rev.1
Page24
- humanitarian supplies;
- specific goods temporarily imported totheArmenian territory andfurther exported without
being processed, such asfairandexposition exhibits, commodity patterns andpackage,
professional equipment oftemporary visitors, advertising materials, liveanimals, etc.;
- prosthetic andorthopaedic equipment andspare parts thereof;
- goods imported toduty-free shops ortobonded warehouses forsubsequent exportation from
theArmenian customs territory;
- goods andarticles, imported atexpense ofcredits, received bytheRepublic ofArmenia;
- anyother instances foreseen ininternational agreements, including freetrade agreements;
essential equipment imported byforeign enterprises andjointventures (withatleast30percentforeign
ownership), vehicles imported forGovernment use,humanitarian supplies, foreign currency andbonds,
prostheticandorthopaedicequipment,goodsimportedforduty-freeshops,livestock,meat,fish,shellfish,
milkandmilkproducts, vegetables, coffee, tea,spices, fruits, animal andplant fatsandoils,sugar
andcandies, mineral fuelandbitumens, leather, silk,wool, cotton andother textile threads, synthetic
thread, glass andnon-decorative glass products, aluminum, lead, zinc, pewter andobjects made of
these metals, tractors, flying apparatus, goods intransit, temporary imports, andanyother instances
foreseen ininternational agreements, including freetrade agreements. Natural persons wereentitled
toaduty-free import allowance onnewgoods uptoavalue ofonethousand USdollars.
- Customs feesandcharges forservices rendered
40.35. Some members oftheWorking Party stated theadvalorem customs feelevied byArmenia
onimports wasinconsistent withtheprovisions oftheWTO, inparticular, Article VIIIofthe
GATT 1994. They alsonoted thataSome members oftheWorking Party stated thatafiveyear
transition period tobring thefeeintoconformity withArticle VIIIwasnotappropriate. Armenia should
conform withtherequirements ofArticle VIIIfrom thedateofitsaccession, andfrom thattimethe
proceeds ofthefeeshould onlybeusedfortheoperation ofcustoms clearance facilities andtotalannual
revenues fromthefeeshould notexceed thecostofcustoms clearance oftheimported goods. Following
accession, information onthemethod ofcalculation ofthefeeandthecostofprovision ofcustoms
clearance facilities should beprovided toWTO Members upon request.
41.32Inresponse toquestions from Working Party Members about Armenia 'ssystem ofcustoms
fees,therepresentative ofArmenia stated thatacustoms feeof0.15percentwascharged onimported
goods. The0.15percenttaxwascalculated onthec.i.f. value plusapplicable customs duty. NoWT/ACC/SPEC/ARM/1/Rev.1
Page25
customs feewascharged onimportation bytheArmenian Government onclearing operations made
onthebasis ofinternational agreements, ontemporary imports, onimports ofrawmaterials for
construction under bilateral inter-republican contracts, ongoods imported directly through theState
budget, andonhumanitarian aid. Imports subject toclearing arrangements under inter-republican
contracts signed withcountries oftheFormer Soviet Union (FSU) hadpreviously beenexempted from
thecustoms fee,butthisexemption hadbeendiscontinued, andFSUcountries werenolonger exempted
fromthecustoms fee.Noother import charges orfeeswerearelevied. Under anamendment toDecree
No.615of6December 1993, which entered intoforce on1May1996, thecustoms userfeewas
increased from0.15percentto0.3percent. In1995, approximately US$1 million wascollected as
customs charges. Thisrevenue wasusedforthedevelopment ofthecustoms administration inArmenia.
[Among themain items ofexpenditure were construction andrepair offacilities andequipment
(US$480,000), computer procurement (US$82,500), procurement andmaintenance ofvehicles
(US$80,000), procurement ofuniforms (US$55,000), andremuneration (US$220,000).]
Resolution282concerningtheendorsementoftheStatuteofthereservefundoftheCustomsDepartment,
outlined howthefeeslevied weredisbursed (being oneofthesources oftheformation ofthereserve
fund): 70percentofthemoneys inthereserve fundwereallocated forandspent onthecreation and
strengthening ofthematerial andtechnical basis ofthesystem, withtheobjective ofimproving and
developing thecustoms domain; 25percentofthemoneys inthereserve fundwereallocated forand
spent onthepayroll oftheemployees ofthecustoms service, providing themwithmaterial incentives
andimproving theirsocial conditions; 5percentofthemoneys inthereserve fundwere allocated
tothefundoftheheadoftheCustoms Department, which he/she usesforcontingency expenses within
his/herjurisdiction.TheGovernmentoftheRepublicofArmeniaadoptedtheLawontheImplementation
oftheAmendments andtheSupplements totheLawonCustoms Tariffs of18August 1993, which
entered intoforceon19September 1997. Under thisLawthecustoms userfeewascharged ondeclared
goods ofanamount equal to0.3percentofthecustoms value, butnomore than600,000Drams
(about US$1,200). Thecustoms feewasnotcharged onimportations made under credits given tothe
Armenian Government, onhumanitarian aid,aswellasforbenevolent purposes. On1January 1999
thecustoms feewould bebrought intoconformity withtheprovisions ofArticle VIIIoftheGATT 1994.
42.33. SomemembersoftheWorkingPartyquestionedaskedwhetherthe0.3percentfeewasconsistent
withtherequirements ofArticle VIIIoftheGATT 1994, inparticular, whether thefeerepresented the
costoftheservices rendered. While agreeing thatsuchpayments areincompatible withArticle VIII
oftheWTO Agreement, therepresentative ofArmenia saidthatthepresent customs feewasbased
onthenecessity toimprove theconditions ofthecustoms service. Armenia needed acertain periodWT/ACC/SPEC/ARM/1/Rev.1
Page26
oftime(uptotheendof1998) toensure thecomplete conformity ofthecustoms feewiththeWTO
provisions. Therepresentative ofArmenia replied thatinviewoftherequirement inArticle VIIIof
GATT 1994 thatfeesforservices rendered correspond tothecostoftheservices rendered, andin
viewofthepractical difficulties ofstructuring theArmenian customs feeinterms ofactual costsincurred
forrendering customs services, theGovernment ofArmenia haddetermined thatthebestcourse of
action would betobindthecustoms feeof0.3percentasan“extradutyorcharge ”under Article II.1(b)
intheschedule ofconcessions.
[43.34. Therepresentative ofArmenia confirmed thatArmenia would, by31December 1998, revise
itscustoms fee,currently 0.3percent advalorem ,withamaximum feelevelof600,000 Drams (about
US$1,200). Asof1January 1999 thecustoms feewould beinconformity withtheprovisions of
Article VIIIoftheGATT 1994. Inthisregard, Armenia would ensure thatthefeecollected would
represent theapproximate costofthecustoms services rendered inprocessing imports andexports.
Thefeewould alsobeapplied toexports andtoimport purchases bytheGovernment ofArmenia,
except forthecases determined bytheLawontheExecution oftheAmendment andtheSupplement
totheLawonCustoms Tariffs of18August 1993, (e.g., imports, which were made under credits
given totheArmenian Government, onhumanitarian aid,andforbenevolent purposes). Proceeds from
application ofthefeeonlywould beusedtofundimport andexport processing activities andonlyto
process trade subject tothefee.Total annual revenues fromthefeewould notexceed thecostofthe
customs services provided. Following accession, information onthemethod ofcalculation ofthefee
andthecostofprovision ofcustoms processing would beprovided toWTO Members upon request.
TheWorking Party tooknoteofthese commitments.]
Some members oftheWorking Party stated thatthecustoms feewasnotthetypeoffeecontemplated
byArticle II.1(b), andthatthefeeshould either bebrought intoconformity withArticle VIIIorbe
eliminated. Therepresentative ofArmenia stated thatArmenia would notseektobindthecustoms
feeunder Article II.1(b). Rather, itwould introduce amaximum andminimum amount payable on
anygiven import orexport transaction, andtheneither charge thatamount, orthe0.3percent
advalorem feeifthecalculated amount fellbetween theminimum andmaximum rates. Inthisfashion,
Armenia intended toensure thatthecustoms feeapproximates thecostofservices rendered. This
arrangement would beintroduced bytheendofthefirstquarter of1997. Therepresentative ofArmenia
requested atransition period offiveyears fromthedateofWTO accession tobring itscustoms user
feefullyintoconformity withArticle VIIIofGATT 1994. Thetransition period wasrequired sothat
Armenia could modernize itscustoms service, andusetherevenue collected fromthecustoms feeduring
thefive-year grace period forthispurpose.WT/ACC/SPEC/ARM/1/Rev.1
Page27
[Therepresentative ofArmenia confirmed thatArmenia [would, bythedateofaccession, revise its
customs feecurrently 0.3percenrtadvalorem tobring itintoconformity withtheprovisions ofArticle
VIIIoftheGATT 1994.] [hadabolished the0.3percentcustoms userfeeandwould notreintroduce
it.From thedateofaccession anyapplication offeesandcharges byArmenia forservices rendered
forimports would beinaccordance withtherelevant provisions oftheWTO Agreements, inparticular,
Articles VIIIandXoftheGATT 1994.] [Inthisregard, Armenia would implement aminimum and
maximum feelevelthatwillensure thatthefeecollected would approximate thecostofthecustoms
services rendered inprocessing imports. Thefeewould alsobeapplied toexports andtoimport
purchases bytheGovernment ofArmenia. Proceeds from application ofthefeewould onlybeused
tofundimport andexport processing andtoprocess trade subject tothefee.Total annual revenues
from thefeewould notexceed thecostofthecustoms services provided. Following accession,
information onthemethod ofcalculation ofthefeeandthecostofprovision ofcustoms processing
would beprovided toWTO Members upon request.] TheWorking Party took noteofthese
commitments.]
- Application ofinternal taxes toimports
44.36 Therepresentative ofArmenia informed theWorking Party thatArmenia 'staxsystem had
been completely overhauled since 1992, aspartoftheGovernment 'soverall policy ofeconomic
transformation towards amarket economy. On14April 1997theNational Assembly oftheRepublic
ofArmenia adopted thenewLawonTaxes. Under thisLawthetaxes, applied inArmenia, wereas
follows:
- Value added tax;
- Excise tax;
- Profit tax;
- Income tax;
- Property tax;
- Land tax.
Inparticular, twoindirect taxes wereimposed onimports anddomestic production inArmenia -the
value added tax,charged ontheturnover ofgoods andservices, andtheexcise taxonrealization of
certain goods. Thedirect taxesincluded theprofit taxlevied ontheprofit ofjuridical persons, theincome
tax–ontheincome ofnatural persons, theproperty tax–onthecertain types ofproperty andthe
landtaximposed onthelandowners described inpaeagraphs 9-13above. Armenia hadtwootherWT/ACC/SPEC/ARM/1/Rev.1
Page28
indirect taxes which were applied tobothimports anddomestic production -avalue-added taxand
anexcise tax.Direct taxes included personal income tax,anenterprise profits tax,landtax,anda
State enterprises fixed assets, citizens ’buildings andtransportation devices tax.Other taxes, which
raised verymodest sums ofrevenue included afewState andlocaltaxes andfees,some professional
operating fees,andanenvironmental taxonpollution andnatural resource use.
- Value Added Tax
45.37Therepresentative ofArmenia informed saidthattheValue Added Tax(VAT) wasimposed
pursuant tothenewLawonValue Added Tax,which entered intoforce on1July1997. ThisLaw
ensured conformity oflevying VAT onimported goods withtheMFN principles andprovided for:
- countries;
- principle oftaxing ofimports atthecustoms border;
- introduction ofadedicated system ofregistration ofVAT payers;
- introduction ofasystem oftaxbills.
TheVAT wascharged onimports anddomestic output attherateof20percent. Inthefullvalue
ofthetaxable turnover ofgoods andservices (including 20percentrate)theamount ofthevalue added
taxwasdetermined on16.67 percentofthecalculation rate.Thevalue added taxwasnotcalculated
andlevied bycustoms bodies ongoods imported toArmenia withzerocustoms tariff determined by
theLawonCustomsTariffRates.TheitemsexemptedfromVATincluded:theurbanelectricaltransport,
tuition foreducation insecondary schools, professional andhigher educational institutions (Universities,
Institutes, etc.); realization ofchildren 'sfood; scientific research work; realization oftheveterinary
drugs andchemicals usedinproduction ofagricultural products; realization ofdomestically produced
agricultural products; insurance, reinsurance andbanking activities; products andservices imported
ashumanitarian aidaswellasforcharitable purposes. Inaddition, zero-rate taxwasapplied to:the
taxable turnover ofgoods exported outside ofthecustoms territory ofArmenia; thegoods determined
forofficial usage bydiplomatic andconsular representations orbyequated withthemotherinternational,
intergovernmental organizations, aswellasgoods andservices acquired bythese organizations onthe
territory ofArmenia; transit offoreign loadsthrough theterritory ofArmenia; construction andrelevant
(designing, research, etc.)works fulfilled attheexpense oftheresources ofArmenian Diaspora
communities, foreign countries, foreign andinternational intergovernmental andnon-governmental
(public) andreligious organizations inthescope ofhumanitarian aidandbenevolent orother socialWT/ACC/SPEC/ARM/1/Rev.1
Page29
programmes. Imports fromtheFSUwerezero-rated. Exports outside theFSUwerealsozero-rated,
while exports toFSUcountries were liable topaythetax.Inresponse toquestions concerning the
zero-rating ofVAT, therepresentative ofArmenia stated thatitapplied equally toimports and
domestically produced goods. Taxcredits were available onVAT paidinother States oftheFSU,
andonamortizable assets. Goods andservices exempted fromVATincluded urban electrical transport,
medicines anddrugs, rents, insurance reinsurance andbanking activities, certain kinds ofentertainment,
products andservices imported ashumanitarian aidandforcharitable purposes, bread, milk, yogurt,
children 'sfood, clothing, andfootwear, butter, sugar, margarine, wheat, cheese, milk, andvegetable
oils. Goods subject toprice controls werealsoexempted, except forcigarettes. ThefulllistofVAT
exemptions wasprovided totheWorking Party intheLawonValue Added Tax.
- Excise Tax
46.38Inresponse tothequestions concerning excise taxtherepresentative ofArmenia added, that
theLawonExcise Taximposed excise taxondomestic andimported goods. LiketheVAT, theexcise
taxwascollected onimports bythecustoms authorities, andonlocalproduction bytheTaxInspectorate.
TheNational Assembly ofArmenia adopted thenewLawonExcise Tax,which entered intoforce
on1July1997. According tothisLaw, theexcise taxwascharged onthefollowing goods
produced/realized intheRepublic ofArmenia orimported totheRepublic ofArmenia bynatural and
juridicalpersonsandentitieswithoutstatusofajuridicalperson:caviar,beer,grapewine,strongalcohol,
tobacco products, gasoline, diesel fuel,natural leather garments, furandfurskin articles (excluding
workers'andmilitarysemi-coatsmadeofsheepfurskin),glasscrystalandchina,jewelleryandpassenger
vehicles. Forthegoods produced inArmenia theturnover oftherealization ofthegoods, based on
therealization prices (without excise andvalue added taxes) wasthesubject oftaxation. Theexcise
taxcharged ondomestically produced goods wascalculated andpaidbytheenterprise ortheindividual
entrepreneur producing/realizing thegoods inquestion during tenworking daysfollowing therealization
ofgoods. Forthegoods imported toArmenia thecustoms value ofthegoods (without value added
taxes andcustoms tariffs) wasthesubject oftaxation. Theexcise taxes charged onimported goods
werelevied bythecustoms bodies intendaysafterimportation. Noexcise taxeswerelevied onimports
from within theFSUoronexports toanydestination. Excise taxes were applied onimports atthe
import duty-inclusive price bythecustoms authorities onthebasis ofthecustoms value approved or
determined forimport dutypurposes. Excise taxes werecollected attheretail stage ondomestically
produced goods. Therepresentative ofArmenia saidthatthedutiable value wastheretail price plus
theamount ofexcise (i.e. cost+profit +excise).WT/ACC/SPEC/ARM/1/Rev.1
Page30
47.39Theexcise taxes were asfollows:
HSnumber Product description Advalorem tax
1604 30100 Caviar 200
2203 Beer 50
2204 -2206 Grape wine 50
2207; 2208 Strong alcohol 125
2402 Tobacco products 100
2710 00270
Gasoline 352710 00290
2710 00320
2710 00340
2710 00360
2710 00690 Diesel fuel 10
4203 Natural leather garments 25
4301 -4303 Furandarticles offurskin: of
which:
430310 300 workers ’andmilitary semi-coats
made ofsheep furskin25
06911
7013 312Glass crystal andchina 25
7113 -7117 Jewellery 15
8703 Passenger vehicles 15
HSNumber Product Description Advalorem duty
ondomestic
productsAdvalorem
dutyon
imports
2208 10-2208 90
2209Strong alcohol 50 75
2203 00 Beer 50 75
2204 10-2204 30
2205 10-2205 90Grape wine 25 50
1604 30 Caviar 50 50
2402 10-2402 90 Tobacco products 50 50
7113, 7114, 7115,
7116, 7117Jewellery 25 25
4301, 4302, 4303,
4304Furs, natural leather garments 25 25
8703 10-8703 90 Passenger vehicles 0 15
4011 10 Tires forpassenger vehicles 25 25WT/ACC/SPEC/ARM/1/Rev.1
Page31
HSNumber Product Description Advalorem duty
ondomestic
productsAdvalorem
dutyon
imports
6911 10-6911 90
7013 31Glass crystal andchina 25 25
5702 10-5702 99 Hand-woven carpets 50 50
2710 00 Gasoline 25 25
48.40Therepresentative ofArmenia stated thattheArmenian Government recognized thatit
wasaviolation ofthenational treatment principle forexcise taxes ondomestic products tobelower
thanonimports ofthesameoralikeproduct. Therefore, on1January 1997Armenia would equalized
excise taxes ondomestic goods andimports ofthesame orlikeproducts aspartoftheaccession
commitments (seethetableinparagraph 47above).
49.41Some members oftheWorking Party noted thatthenon-application ofthese taxes toimports
fromFSUStates maybeseentogiverisetodiscrimination against products fromnon-FSU countries.
Therepresentative ofArmenia stated thatthese arrangements didnotviolate thenational treatment
principle. Inresponse tofurther questions, therepresentative ofArmenia stated thattheGovernment
ofArmenia recognized, however, thatthismixed application oftheorigin anddestination principles
with respect totaxes onthesame goods from different sources waslikely toinfringe the
most-favoured-nation (m.f.n.) principle. While itmaybepossible todefend thisdeparture fromm.f.n.
interms ofArticle XXIV ofGATT 1994, byvirtue oftheexistence offreetradeagreements withother
CIScountries, t.Therepresentative ofArmenia stated thatArmenia hadwished toswitched tothe
destination principle oftaxation withrespect toimports from allsources. Armenia wastherefore
attempting topersuade itsCIStrading partners ofthedesirability ofcharging these taxesatdestination
andnotorigin.
50.42Therepresentative ofArmenia confirmed that,from thedateofaccession, Armenia would
apply itsdomestic taxes, including value-added andexcise taxes, inanon-discriminatory manner
consistent withArticles IandIIIoftheGATT 1994. Inthisregard, inaccordance withthenewLaws
onVAT andonExcise tax,these taxes wereapplied atanequal rateondomestic andimported goods
andArmenia applied thedestination principle tovalue-added andexcise taxes withrespect toimports
fromallsources. Inaddition, themethod ofapplication ofallindirect taxes applied toimports would
bepublished andreadily available toimporters, exporters, anddomestic producers. stated thatArmeniaWT/ACC/SPEC/ARM/1/Rev.1
Page32
would apply thedestination principle instead oftheorigin principle toVAT andexcise taxes fromthe
dateofaccession totheWTO. [TheWorking Party tooknoteofthese thiscommitments.]
- Non-tariff measures [Quantitative restrictions] andimport licensing
51.48The representative ofArmenia stated thatpursuant totheResolution No. 124,
29December 1995, which regulates non-tariff measures inArmenia, Decree No.17ofJanuary 1995,
mostimports werefreeofanyprohibitions orquotas. Theimport restrictions wereimposed forhealth,
security, andenvironmental reasons. Theitems affected wereallkinds ofweapons, military technique
andtheconsumables necessary foritsproduction, technologies, equipment andlocators ofnuclear
materials (including heating materials), special non-nuclear materials andservices related toit,ionizing
radiation sources, theimportation ofwhich wascarried outthrough authorization issued bythe
Government oftheRepublic ofArmenia components usedintheproduction ofweapons, explosives,
nuclear materials, poisons, narcotics, strong psychotropic substances, devices foruseinopium smoking
andpornographic material. TheGovernment hadnoplans toeliminate those restrictions.
52.49Therepresentative ofArmenia stated thataccording totheResolution No.124thefollowing
imports aresubject tolicensing:
HSnumber
Pharmaceutical products,
medicines13.02, 29.38, 29.41, 30.03, 30.04;
Agricultural chemicals 38.08
HSnumber
Pharmaceutical products, medicines 05.10,12.11,29.38,29.41,30.03,30.04,and
30.13.02
Rawmaterials forpharmaceutical production 05.00; 12.11; 13.02; 29.38
Agricultural chemicals 38.08
Rarewildanimals andplants included inthe
RedBook oftheRepublic ofArmeniaWT/ACC/SPEC/ARM/1/Rev.1
Page33
TheRedBook oftheRepublic ofArmenia contained alistofrareanimals andplants. Anyrestrictions
imposed onthese items aremore likely toaffect exports from Armenia. TheRedBook identifies
approximately onehundred rareanimals andbirds, and390rareplants, inrespect ofwhich licences
would berequired.
53.50Inresponse toquestions concerning theimportation ofpharmaceutical products andmedicines,
therepresentative ofArmenia stated thatthese havetobeauthorized bytheMinistry ofHealth ofthe
RepublicofArmenia.Theimportationof"agriculturalchemicals(HS38.08)"isrequiredtobeauthorized
bytheMinistryofAgricultureandFood.Theby-lawonissuingauthorizationforimportingandexporting
pharmaceuticals, stipulated that:
- authorizations forimportation ofpharmaceuticals wereissued bythePharmaceutical Inspection
oftheMinistry ofHealth oftheRepublic ofArmenia, andauthorizations forimportation of
agricultural chemicals were issued bytheMinistry ofAgriculture andFood, respectively;
- theauthorizations were forsingle useonly;
- toissue anauthorization thefollowing documents andconditions were required:
(a) thelicence forcommercial activities involving pharmaceutical products intheRepublic
ofArmenia(Resolutions161/415and36).TheResolutionsstipulatedthattheproduction
andwholesale andretail trade inpharmaceutical products andmedical utensils were
subject toState licensing intheRepublic ofArmenia. Resolution 36stipulated that:
- pharmaceutical andmedical activities weresubject tolicensing intheRepublic
ofArmenia;
- licensing wascarried outbytheMinistry ofHealth;
- licences were issued foraperiod of5years.
Licences forwholesale andretail tradeinpharmaceutical products andmedical utensils
wereissuedbytheStateLicensingCommitteeoftheMinistryofHealth.Theprocedures
forissuing licences wereapproved bytheResolution 188.Thesamelicensing (including
importation ofpharmaceuticals andchemicals) procedures applied toindividuals who
havereceived medical andpharmaceutical education inforeign countries. Andinthe
caseoftheexistence ofinternational agreements signed bytheRepublic ofArmenia
theprocedures specified intheagreement applied (Resolution 188,24July1996).WT/ACC/SPEC/ARM/1/Rev.1
Page34
Foreign specialists invited toimplement programmes ofinternational and
intergovernmental agreements were notsubject tolicensing.
(b) Imported orexported pharmaceutical products andagricultural chemicals must be
registered intheRepublic ofArmenia. Theregistration ofpharmaceutical products
andmedical utensils wasperformed intheRepublic ofArmenia according toProvisions
ontheregistration ofpharmaceutical products andmedical utensils intheRepublic
ofArmenia andtheProtocol ofregistration ofpharmaceutical products andmedical
utensils intheRepublic ofArmenia approved bythePharmaceutical Department of
theMinistry ofHealth.
(c) Theremustbeconformityofthequalityofimportedorexportedpharmaceuticalproducts
tothequality standards accepted intheRepublic ofArmenia. Inthisrespect
Resolutions 417and205regulated theprocedures ofimportation andexportation of
products subject toobligatory certification.
(d) Imported andexported pharmaceuticals must begood foruseforatleasttwo-thirds
oftheperiod oftheirvalidity.
therepresentative ofArmenia stated thatthese imports hadtobeauthorized bytheMinistry ofHealth.
Theimportation ofagricultural chemicals (HSheading 38.08) wasrequired tobeauthorized bythe
Ministry ofAgriculture. TheMinistry ofEconomy issued licences fortheimportation ofrarewild
animals andplants listed intheRedBook onthebasisofarecommendation oftheMinistry ofNature
andEnvironment. Those licensing arrangements werenotadministered inarestrictive fashion, they
wereadministered toprotect health andtheenvironment. Hefurther noted thatDecree No.17,which
speltoutthelicensing regulations onimports andexports, provided inparagraph 8thatthelicensing
requirement didnotapply toenterprises withatleast30percentforeign capital thatengaged inthe
importation ofrawmaterials fortheproduction ofcommodities. Headded thattherewasnostatutory
requirement toapply alicensing regime. Thedesignation ofproducts subject tolicence wasatthe
discretion oftheExecutive toremove oradditems from thelistofthose subject tolicensing.
54.51Therepresentative ofArmenia further stated thatanyperson, firms andinstitutions wishing
toapply foranimport licence maydosoprovided theyareregistered asajuridical person orasole
entrepreneur undertaking abusiness activity inArmenia. Registration asajuridical person orsole
entrepreneur wasanautomatic procedure, subject tonorestrictions. Licences applications wererequiredWT/ACC/SPEC/ARM/1/Rev.1
Page35
tobedetermined within fifteen tendaysofreceipt ofanapplication. Inresponse toquestions from
some members regarding whether licences could beissued more quickly, therepresentative ofArmenia
stated thatsince thefifteen- tendaystipulation wasamaximum period, inpractice licences could be
obtained within ashorter timeperiod. Ifgoods arrived without alicence, theycould onlybecleared
through customs upon production ofthenecessary import licence.
55.52Therepresentative ofArmenia saidthatrequests forauthorization could berefused andissued
authorizations could besuspended if(a)there wasincorrect information inthepresented documents,
(b)theperiod ofvalidity ofthepharmaceutical products wasexceeded, (c)theproduction serial numbers
ofimported pharmaceuticals didnotcorrespond withthesubmitted quality certificates, (d)theimported
pharmaceuticals werenotregistered inArmenia. Unjustified delays andrefusal toissueauthorization,
aswellsuspending andcancelling issued certificates, could giverisetojudicial procedures within 30
daysaftertherefusal orsuspension. alicence would bewithheld ifaproposed importation involved
aproduct notincluded ontheapproved listmaintained bytheMinistry ofHealth. Thesame
considerations apply inthecaseoflicence approvals granted bytheMinistry ofAgriculture. Inaddition,
paragraph 9ofDecision No.17stipulated thatanimport licence maybedenied where animportation
would: (i)becontrary toanintergovernmental agreement; (ii)result inunfair competition asdefined
under Armenian legislation; (iii)bebased onincorrect information; or(iv)involve anyother case,
asdefined inthelegislation ofArmenia. Points (ii)and(iv)above havenotbeenusedasgrounds for
denying alicence, sincenounderlying legislation requiring suchactions hasbeendeveloped. Importers
wereentitled tomake representations totherespective licensing authorities uponrejection ofanimport
licence. Importers werealsoentitled tomake representations through thecourts iftheyaredissatisfied
withanadministrative decision involving refusal togrant alicence.
56.53Therepresentative ofArmenia added thattoreceive anauthorization forimportation of
pharmaceuticalproductsthefollowingdocumentswererequired:anapplicationform,acertificaterelating
totheacquisition ofthepharmaceutical products, alicence totrade inpharmaceutical products in
Armenia, acertificate ofquality issued bytheproducer. Toissueanauthorization, anamount, equivalent
totheminimum salary fixed bythelegislation oftheRepublic ofArmenia wascollected andpaidinto
theState budget. aprospective importer ofaproduct subject tolicensing wasrequired tosubmit an
import licence application form, together withacertificate oforigin, aproforma invoice orother
agreement indicating thenature oftheproduct, itsprice andtheterms andconditions oftheproposed
transaction, andacertificate ofquality. Import clearance oflicensed imports required theoriginalWT/ACC/SPEC/ARM/1/Rev.1
Page36
copy oftheimport licence, acertificate oforigin, andthefinalinvoice. Anadministrative charge
waspayable foranimport licence, which inmid-1995 was540Drams (approximately US$1.30).
57.54Therepresentative ofArmenia further noted thatauthorizations were issued fortheperiod
necessary tocarry outtheengagements, butnolonger thanoneyear. Thevalidity ofanauthorization
could beextended upon thesubstantiated request ofanapplicant. Thebody issuing theauthorization
could suspend itsvalidity orcancel it.nodeposit oradvance waspayable upon issuance ofimport
licences. Nolimitations existinrelation totheperiod oftheyearduring which alicence application
and/or animportation maybemade. Theperiod ofvalidity ofalicence isamaximum ofoneyear.
Licences maybere-issued afterthisperiod, butnotextended. Ifalicence isissued forlessthanthe
maximum period ofoneyear, thensuchalicence canbeextended automatically uptothemaximum
permitted period. Nopenalties existforthenon-utilization oflicences. However, lLicences were
nottransferable among importers.
58.55Therepresentative ofArmenia confirmed that,from thedateofaccession, Armenia would
eliminate andwould notintroduce, re-introduce orapply quantitative restrictions onimports orother
non-tariff measures suchaslicensing, quotas, bans, permits, priorauthorization requirements, licensing
requirements, andotherrestrictions having equivalent effect thatcannot bejustified under theprovisions
oftheWTO Agreement. Hefurther confirmed thatthelegalauthority oftheGovernment ofArmenia
tosuspend imports andexports ortoapply licensing requirements thatcould beusedtosuspend, ban,
orotherwise restrict thequantity oftrade would beapplied fromthedateofaccession inconformity
withtherequirements oftheWTO, inparticular Articles XI,XII,XVIII, XIX, XX,andXXIofthe
GATT 1994, andtheMultilateral Trade Agreements onAgriculture, Sanitary andPhytosanitary
Measures, Import Licensing Procedures, Safeguards andTechnical Barriers toTrade. [Inthisregard
healsostated thatthesamekindofrequirements contained inResolution No.124,29December 1995
relating toimports would beequally applied toimports andtothepurchase orsaleofsimilar domestic
products. Anyexemptions fromthose requirements would beequally applied toimports andtheoutput
ofdomestic firms.] [TheWorking Party tooknoteofthesecommitments.] added thatforeign exchange
wasautomatically provided forgoods tobeimported. Animport licence doesnothavetobepresented
inorder toobtain foreign exchange. Foreign exchange isalways available tocover licences issued,
unless foreign exchange isingeneral short supply. This, however, isunlikely tooccur inview of
Armenia ’sliberalized foreign exchange markets. Noformalities needtobefulfilled inorder toobtain
foreign exchange.WT/ACC/SPEC/ARM/1/Rev.1
Page37
- Minimum import prices
59.56Therepresentative ofArmenia noted thatArmenia didnotmaintain asystem ofminimum
import prices.
- Customs Valuation
60.57Some members oftheWorking Party referred totheAgreement onCustoms Valuation and
tocertain inconsistencies oftheCustoms Regulations ofArmenia inrespect ofcustoms valuation.
These Members requested more detailed explanations withregard totheimplementation byArmenia
ofspecific provisions oftheCustoms Valuation Agreement, inparticular Articles 7,8,10,11and12
thereof.
61.58Therepresentative ofArmenia informed theWorking Party thatArmenia 'ssystem ofcustoms
valuation wasbased onthetransaction value. TheArmenian regulations relating tocustoms valuation
werecontained intheCustoms Valuation Regulations werecontained inaGovernment Order attached
toDecree No.615,6December 1993andwereentirely based ontheprovisions oftheWTO Agreement
ontheCustoms Valuation. Atthesame timetheArmenian regulations forestablishing thecustoms
value werealsoreflected intheLawonCustoms Tariffs of18August 1993. Thelatterdidnotcontradict
theprovisions oftheWTO Agreement ontheCustoms Valuation. (December 1993). TheRegulations
wereconsistent withtheprovisions oftheAgreement onImplementation ofArticle VIIoftheGATT
1994. TheRegulation Order provided forthesamesixmethods ofvaluation laidoutintheAgreement
onImplementation ofArticle VIIoftheGATT 1994, andstipulated thatthefirstmethod (transaction
value) should generally beused. Armenia wasamember oftheWorld Customs Organization. He
added thatDecree No.615contained many detailed provisions relating tothevaluation ofgoods by
theCustoms. Inresponse toquestions fromsome members oftheWorking Party concerning Armenia 's
salesbetween related persons, therepresentative ofArmenia stated thatthefactthatsalestookplace
between related persons would not,ofitself, prevent useofthetransaction value, unless itwas
determined thatthedeclared invoice value didnotrepresent thepriceactually paidorpayable forgoods.
Paragraph 8ofDecree No.615permitted importers toseekawritten explanation ofanyrejection by
thecustoms authorities ofadeclared invoice value astheprice actually paidorpayable inrespect of
animport transaction between related parties. Inresponse toquestions concerning theobligation
contained inArticle 1.2(b) oftheAgreement onImplementation ofArticle VIIoftheGATT 1994,
therepresentative ofArmenia stated thatDecree No.615didnotcontain aprovision giving effect toWT/ACC/SPEC/ARM/1/Rev.1
Page38
Article 1.2(b) oftheAgreement onImplementation ofArticle VIIoftheGATT 1994. Inresponse
tofurther questions hestated thatDecree No.615provided thatdamaged goods werevalued taking
intoaccount theeffects ofthedamage, andduties werecharged ontheassessed value. Noduties were
payable onlostgoods. Inresponse tofurther questions, therepresentative ofArmenia stated thatno
provision hadbeenmade inDecree No.615forthereversal oftheorder ofapplication ofthevaluation
methods specified inArticles 5and6oftheWTO customs valuation agreement. Paragraph 24of
Decree No.615provided forthecircumstances envisaged inArticle 5.2oftheWTO customs valuation
agreement. There were arenocases sofarinwhich theprovisions ofArticle 5.2have been
implemented. Article 6.2oftheAgreement, dealing withaccess toinformation possessed byresidents
ofother countries inthecontext ofdetermining computed values hadnotbeenimplemented byDecree
No.615.
62.59Therepresentative ofArmenia saidthatinrelation toArticle 7oftheCustoms Valuation
Agreement, paragraphs 27and28ofDecree No.615provided forthedetermination ofcustoms values
when noneoftheotherfivemethods available canbeapplied. Paragraph 27ofDecree No.615required
thatthecustoms authorities make available relevant information when thevalue wasdetermined by
anymethod other thanoneofthefiveavailable. Inrelation totheprohibitions found inArticle 7.2,
paragraph 28ofDecree No.615stated thatneither retail prices inthedomestic market, northeprices
oflocally produced goods, norexport prices tothirdcountries, noranyother pricedetermined atwill
oronaninexact basis, maybeusedforcustoms valuation purposes when noneofthefiveavailable
valuation methods areapplicable. Inresponse toconcerns raised bysome members oftheWorking
Party thatDecree No.615wasinsufficiently precise, therepresentative ofArmenia stated that
paragraph 28ofDecree No.615referring tothedetermination ofprices atwilloronaninexact basis
isintended toruleouttheuseofminimum customs values, arbitrary orfictitious values, orcomputed
values notusing theprovisions oftheAgreement. TheGovernment ofArmenia recognized, however,
thatDecreeNo.615lacksspecificityincertainkeyareas,andwascommittedtoremedyingthissituation.
63.60Therepresentative ofArmenia saidthatinrelation toArticle 8oftheCustoms Valuation
Agreement, paragraph 12ofDecree No.615required thatthetransaction value applied forcustoms
dutypurposes should include alltheadditional costs referred toinArticle 8.2oftheWTO Customs
Valuation Agreement. Inresponse toquestions concerning therateofexchange applied bytheCustoms,
therepresentative ofArmenia stated thattheexchange rateusedwasderived from thedaily foreign
exchange auctions heldbytheCentral Bank ofArmenia. TheCentral Bank announced exchange ratesWT/ACC/SPEC/ARM/1/Rev.1
Page39
daily andthese ratesarepublished inthepress, asrequired byArticle 9.1oftheCustoms Valuation
Agreement. Confidentiality, wasassured byparagraph 5ofDecree No.615.Inresponse toquestions
concerning themechanisms forprotection ofconfidential information, therepresentative ofArmenia
stated thatparagraph 5ofDecree No.615provided thatconfidential information shallonlybeused
forcustoms purposes andnotdivulged tothirdparties except bypriorconsent. Thismettheobligation
contained inArticle 10oftheCustoms Valuation Agreement.
64.61Inresponse torequests foradetailed description oftheprocess forreview ofcustoms valuation
decisions, therepresentative ofArmenia saidthatinrelation toArticle 11oftheCustoms Valuation
Agreement, paragraph 9ofDecree No.615provided foradministrative appeal ofacustoms decision
toahigher customs authority. Legal persons (firms orsoleentrepreneurs) could make judicial appeals
toaspecial arbitration authority incases involving valuation decisions. Thatarbitration wasbinding.
Thespecial arbitration authority wasthesame asthenational courts. Special economic courts will
come intoexistence astheprovisions ofthenewConstitution areimplemented Incases involving any
matter other thanvaluation, legalpersons could appeal tothecivilcourts. Natural persons could only
make appeals tothecivilcourts.
65.62Therepresentative ofArmenia saidthatasrequired byArticle 12oftheCustoms Valuation
Agreement, relevant national laws, regulations, decisions andrulings werepublished intheBulletin
ofDecrees oftheGovernment ofArmenia orintheManual oftheSupreme Council oftheRepublic
ofArmenia. Inrelation totheobligation contained inArticle 13(lastsentence) oftheCustoms Valuation
Agreement, when thecustoms value ofgoods cannot beimmediately determined, importers wereentitled
toremove theirgoods fromcustoms control uponpayment ofprovisional duties based ontheassessment
ofthecustoms authorities. Theimporter thenhadthreemonths inwhich tochallenge theassessment.
Alternatively, animporter could provisionally cleargoods against abankguarantee validforonemonth.
Ifavaluation issue wasnotsettled within onemonth, afurther two-month period wasprovided for
animporter tochallenge anassessment, against provisional payment oftheassessment made bythe
customs authorities. Thedutyassessment, whether adjusted ornotfrom theoriginal assessment of
thecustoms authorities, became finalafterthethree-month period. Paragraph 8ofDecree No.615
provides thatanimporter isentitled, within seven daysofawritten request, toreceive awritten
explanation ofavaluation decision ofthecustoms authorities. Theinterpretative notes oftheWTO
Agreement onCustoms Valuation hadnotbeensystematically included inDecree No.615.WT/ACC/SPEC/ARM/1/Rev.1
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66.63Following questions andcomments fromWorking Party members reflecting concerns about
theneedforimprovements toDecree No.615,therepresentative ofArmenia stated thatDecree No.615
would berevised prior toaccession toaddress theconcerns expressed byWorking Party members
andthattheprovisions oftheWTO Agreement ontheImplementation ofArticle VIIofGATT 1994
would beadopted asanintegral partofArmenia ’snational lawuponafterArmenia ’sWTO accession.
Therefore, allnecessary consequent changes willalsohavetobemade innational legislation and
regulations. Asfarascustoms valuation isconcerned, Armenia intends toensure thatthenecessary
legal basis isinplace toimplement theAgreement fullybythefirstquarter of1997, orthedateof
accession totheWTO, whichever wastheearlier. Inaddition, therepresentative ofArmenia stated
thathisGovernment would adopt the“Decision of24September 1984 ontheValuation ofCarrier
Media Bearing Software forDataProcessing Equipment ”bytheendof1997. Therepresentative of
Armenia stated thattheGovernment ofArmenia would ensure thataAllrelevant lawswould bein
fullconformity withtheother requirements oftheAgreement onImplementation ofArticle VIIofthe
GATT 1994 atthetimeofaccession. Inparticular, theinterpretive notes oftheAgreement would be
fullyincorporated inArmenia ’scustoms valuation laws, andtheDecision of24September 1984 on
theValuation ofCarrier Media Bearing Software forDataProcessing Equipment" would beadopted
toensure thatvaluation ofsoftware wasbased onthevalue ofthemedia. [TheWorking Party took
noteofthese commitments.]
- Other customs formalities
- Rules oforigin
67.64Therepresentative ofArmenia stated thattherules oforigin applied byArmenia followed
theprinciples stated intheAgreement onRules ofOrigin. Origin rulesweredefined interms ofwholly
originating products, achange inthetariffclassification ofthegood, processing criteria, andthevalue-
added criterion. Thechoice ofapproach fordetermining origin depended ontheproduct concerned
andanyrelevant international agreement inrespect ofwhich origin ruleswerebeing applied. However,
withtheexception ofwholly originating products, thechange intariffheading criterion (at4-digit level
intheHSclassification) wasusedunless analternative wasisstipulated. According totheprocedure
ofdetermination ofthecountry oforigin attached totheResolution oftheGovernment 615,thecountry
oforigin wasconsidered tobethecountry where theentire product hasbeenmanufactured orwhere
ithadundergone sufficient processing. Thefollowing goods wereconsidered tobeentirely produced
inacountry:WT/ACC/SPEC/ARM/1/Rev.1
Page41
- minerals mined intheterritory ofacountry orinside itsterritorial waters;
- plant produce grown orharvested intheterritory ofacountry;
- animals bornorbredintheterritory ofacountry;
- products received from theanimals bornorbredintheterritory ofacountry;
- product ofhunting, fishing orseaoperations intheterritory ofacountry;
- product ofthehighseasoperations, thatisproduced inthehighseasbyvessels belonging
tothecountry orleased byit;
- secondary rawmaterials orthewaste resulting fromtheproduction andother activities carried
outintheterritory ofacountry;
- product ofhightechnologies received intheopenspace onspaceships belonging tothecountry
orleased byit;
- goods produced inthecountry inquestion, thathavebeenexclusively produced inaccordance
withthepoints above.
Incasewhen twoormore countries haveparticipated intheproduction ofaproduct, theorigin of
thegoods isdetermined based onthecriteria ofsufficient processing. Thefollowing werethecriteria
forthesufficient processing ofgoods:
- anyalteration inthefirstfourdigits intheposition oftheclassification ofaproduct (theproduct
description code) thathasoccurred asaresult ofprocessing theproduct;
- implementation ofproduction ortechnological operations thatwere either sufficient or
insufficient toconsider theproduct asoriginating from thecountry where suchoperations
havetaken place;
- advalorem rule-thealteration inthevalue oftheproduct, when theproportion oftheadded
value orthevalue ofthematerials usedexceeded acertain measure ofthepriceoftheproduct
Moreover, thefollowing wereconsidered asnotmeeting therequirement ofthecriteria onsufficient
processing:
- operations geared towards thepreservation oftheproduct during itsstorage ortransportation;
- operations ofpreparation ofthegoods forsaleortransportation (taking apart, consolidation,
sorting, repackaging oftheproducts);
- simple assembly operations;WT/ACC/SPEC/ARM/1/Rev.1
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- merging, smelting oftheparts(components) ofproducts without lending themsuchfeatures
aswould essentially differ from theinitial components.
Thecustoms authorities wereareentitled torequire origin certificates inrespect of:(i)goods subject
toquantitative limitation; thechange intariff; (ii)imports under preferential trading arrangements;
(iii)fortheprotection oftheenvironment, public health andsafety andnational security; and(iv)in
situations where theauthorities consider thatinadequate information astoorigin hasbeensupplied.
Certificates oforigin mustbesigned bysuppliers andverified bytherelevant national certifying body.
Theevaluation withrespect totheorigin ofimported goods wascarried outbytheArmExpertise
subsidiary oftheChamber ofCommerce ofArmenia. Incaseofdoubt astotheorigin ofgoods imported
intotheRepublic ofArmenia theCustoms referred totheArmExpertise, which examined theproduct,
thewaybills andthecertificates oforigin oftheproduct andpasses adecision ontheorigin ofthe
product. Atthesame time, according toPoint 2ofthedirective No.478MV of26April 1996ofthe
headoftheCustoms Directorate oftheRepublic ofArmenia, incaseofabsence oftheabove-mentioned
certificate,thecertificatesissuedSARMorbytheArmExpertisesubsidiaryoftheChamberofCommerce
ofArmenia wereaccepted asdocuments confirming theorigin oftheproduct. Inaccordance withthe
legislation oftheRepublic ofArmenia currently ineffect, importers hadtherighttoappeal controversial
issues toasuperior customs authority. Theadministrative andjudicial obligations withrespect tothis
procedure applied toallentities.
68.65Therepresentative ofArmenia stated thattheGovernment ofArmenia would bring allits
lawsandregulations intofullconformity withtherequirements oftheAgreement onRules ofOrigin
andwould actinfullconformity withtheprovisions ofthatAgreement fromthedateofitsaccession
toWTO. [TheWorking Party tooknoteofthiscommitment.]
- Pre-shipment inspection
69.66Inresponse toquestions, therepresentative ofArmenia stated thatArmenia didnotatpresent
employ theservices ofanypre-shipment inspection companies.
- Anti-dumping, countervailing andsafeguards regimes
70.67Inresponse toquestions, therepresentative ofArmenia stated thatArmenia didnot,atpresent,
haveananti-dumping, countervailing orsafeguards regime. Therepresentative ofArmenia confirmedWT/ACC/SPEC/ARM/1/Rev.1
Page43
that,from thedateofaccession, Armenia would notapply measures forsafeguard, anti-dumping, or
countervailing dutypurposes ifconforming legislation toapply suchmeasures consistent withthe
provisions oftheWTO Agreement onSafeguards, Anti-dumping, andSubsidies andCountervailing
Measures wasnotineffect inArmenia. Therepresentative ofArmenia stated thatifanyofthesepolicy
instruments were introduced inthefuture, theywould befully consistent withtherelevant WTO
provisions. [TheWorking Party tooknoteofthiscommitment.]
- Export regulations
- Export restrictions andexport licensing system
71.68Therepresentative ofArmenia stated thattheResolution No.124,29December 1995onNon-
Tariff Regulation oftheCommodities (Operations, Services) Import andExport intheRepublic of
Armenia Decree oftheGovernment oftheRepublic ofArmenia No.17of17January 1995OnLicensing
and/allocationofImportandExportofCommodities(Jobs/Services)regulatedArmenia’sexportlicensing
regime. Export licences wererequired fortextiles (totheEuropean Union only), formedicines, and
forcertain liveanimals andplants. Theexport licences ontextiles were required pursuant toan
agreement withtheEuropean Union, butnorestrictions onthese exports werecurrently inplace. The
licences formedicines, liveanimals andplants weregenerally notrestrictive -rather, theyweredesigned
toensure public health andsafety. Theexportation andimportation ofweapons, military technique
andtheconsumables necessary foritsproduction, technologies equipment andlocators ofnuclear
materials (including heating materials), special non-nuclear materials andservices related toit,ionizing
radiation sources were carried outthrough authorization issued bytheGovernment oftheRepublic
ofArmenia. Enterprises withforeign participation ofatleast30percentofshare capital wereexempted
from export licensing requirements, except those relating totextile exports totheEuropean Union.
Export prohibitions apply tousedmachinery, weapons, components formanufacturing weapons,
explosives, nuclear materials, certain works ofartofnational orhistoric interest, poisons, narcotics,
strong psychotropic substances, devices foropium smoking, andconfidential information whose
dissemination could hurtthenational interest. Allotherproducts maybefreely exported fromArmenia.
Thesystem applied toexports toalldestinations, except inthecaseofthelicensing requirement for
exports oftextiles andclothing totheEuropean Union. Thelicensing requirements werenotintended
torestrict thequantity orvalue ofexports. Rather, theywereintended toprotect thenational interest
andhuman, animal orplantlifeorhealth, andtheenvironment. Therepresentative ofArmenia stated
thattheGovernment didnotconsider thatatthistime, abetter wayexisted ofachieving theseobjectives.WT/ACC/SPEC/ARM/1/Rev.1
Page44
72.69Therepresentative ofArmenia noted thatArmenia ’sexport licensing system closely paralleled
theimport licensing system. Asontheimport side,pharmaceuticals andrareanimals andplants were
subject tonon-restrictive licensing, designed toprotect health andtheenvironment. Export licensing
proceduresforpharmaceuticalproductswerethesameasimportlicensingprocedures,andwereregulated
bythesameResolutions. Inaddition, exports oftextiles andclothing totheEuropean Union weresubject
tolicensing under abilateral agreement withtheEU,andlicences arealsorequired forexports ofrare
objectsorartifactsconsideredpartofthenationalpatrimony.Thelicensingoftextileandclothingexports
totheEuropean Union allowed these items tobemonitored, buttheyarenotcurrently subject to
restrictions ofanykind.
73.70Therepresentative ofArmenia saidthatArmenia maintained export licensing requirements
onthefollowing items:
HSnumber
Pharmaceutical products 05.10; 12.11; 13.02; 29.38; 29.41; 30.00
Rawmaterials forpharmaceutical production 30.00
Textiles andclothing toEuropean Union 05.00; 12.11; 13.02; 29.38
Objects considered partofthenational patrimony
Rarewildanimals andplants included intheRed
Book oftheRepublic ofArmenia
TheRedBook oftheRepublic ofArmenia identifies approximately onehundred rareanimals andbirds,
and390rareplants inrespect ofwhich licences would berequired andwhose exportation maybe
controlled.
74.71Therepresentative ofArmenia stated thataccording totheResolution No.124theexportation
ofpharmaceutical products andmedicines, havetobeauthorized bytheMinistry ofHealth ofthe
Republic ofArmenia. Theexportation ofrarewildanimals andplants included intheRedBook of
theRepublic ofArmenia wascarried outthrough authorization issued bytheMinistry ofNature and
Environment. Exports ofobjects considered ofinterest tothenational patrimony mustbeauthorized
bytheMinistryofCulture.InthecaseoftextileandclothingexportstotheEuropeanUnion,theMinistry
ofIndustry andTrade hadexclusive responsibility forissuing export licences. Requests forauthorization
could berefused andissued authorizations could besuspended if(a)there wasincorrect information
inthepresented documents, (b)theperiod ofvalidity ofthepharmaceutical products wasexceeded,
(c)theproduction serial numbers ofimported pharmaceuticals didnotcorrespond withthesubmitted
quality certificates, (d)theimported pharmaceuticals were notregistered inArmenia. TheMinistryWT/ACC/SPEC/ARM/1/Rev.1
Page45
ofIndustry andTrade maydenyanexport licence toanapplicant inrespect ofexports totheEuropean
Union ifexports oftheitems concerned were toexceed acertain quantitative limitation.
thattheMinistry ofEconomy issued licences forpharmaceutical products andrawmaterials usedin
theirproduction onthebasisofrecommendations bytheMinistry ofHealth. TheMinistry ofEconomy
issued licences fortheexportation ofrarewildanimals andplants listed intheRedBook onthebasis
ofarecommendation oftheMinistry ofNature andEnvironment. Inthecaseoftextile andclothing
exports totheEuropean Union, theMinistry ofEconomy hadexclusive responsibility forissuing export
licences. Exports ofobjects considered ofinterest tothenational patrimony must beauthorized by
theMinistry ofCulture. Export licences could bedenied where anexportation would: (i)becontrary
toanintergovernmentalagreement;(ii)resultinunfaircompetitionasdefinedunderArmenianlegislation;
(iii)bebased onincorrect information; or(iv)involve anyother case, asdefined inthelegislation of
Armenia. Points (ii)and(iv)above havenotbeenusedasgrounds fordenying alicence, since no
underlying legislation requiring suchactions hasbeendeveloped. Inthecaseoftextiles andclothing,
theMinistry oftheEconomy maydenyanexport licence toanapplicant inrespect ofexports tothe
European Union ifexports oftheitems concerned were toexceed acertain quantitative limitation.
Since thishasnotoccurred sofar,Armenia hasnotdeveloped anymechanisms foradministering export
quotas.
75.72Therepresentative ofArmenia saidthatanypersons, firms andinstitutions wishing toapply
foranexport licence maydosoprovided theyareregistered asajuridical person orasoleentrepreneur
undertaking abusiness activity inArmenia. Asinthecaseoftheimportation ofpharmaceutical products,
toreceive anauthorization forexportation ofpharmaceutical products thefollowing documents were
arerequired: anapplication form, acertificate relating totheacquisition ofthepharmaceutical products,
alicence totradeinpharmaceutical products inArmenia, acertificate ofquality issued bytheproducer.
Authorizations areissued within 15daysfromthedateoftheapplication. Since thefifteen-day stipulation
isamaximum period, inpractice licences maybeobtained within ashorter period. Aprospective
exporter ofaproduct subject tolicensing must submit anexport licence application form, together
withacertificate oforigin, aproforma invoice orother agreement indicating thenature oftheproduct,
itspriceandtheterms andconditions oftheproposed transaction, andacertificate ofquality. Licences
mustbegranted within tendaysofreceipt ofanapplication. Since theten-day stipulation isamaximum
period, inpractice licences maybeobtained within ashorter period. Anexport licence willgenerally
notbegranted immediately uponrequest, butinpractice thenecessary procedures maybecompleted
within adayortwo.Thefeeforanexport licence isequal tothemonth ’sminimum salary intherepublic
ofArmenia. Licences arenottransferable among exporters. Alicence application and/or anexportationWT/ACC/SPEC/ARM/1/Rev.1
Page46
could bemade atanytimeduring theyear. Authorizations areissued fortheperiod necessary tocarry
outtheengagements, butnolonger thanoneyear. Thevalidity ofanauthorization canbeextended
uponthesubstantiated request ofanapplicant. Thebodyissuing theauthorization cansuspend itsvalidity
orcancel it.Unjustified delays andrefusal toissue authorization, aswellsuspending andcancelling
issued certificates, cangiverisetojudicial procedures. Thefeeforanexport licence was540Drams
(approximately US$1.30) inmid-1995. Theperiod ofvalidity ofalicence isamaximum ofoneyear.
Licences maybere-issued afterthisperiod, butnotextended. Ifalicence isissued forlessthanthe
maximum period ofoneyear, thensuchalicence canbeextended automatically uptothemaximum
permitted period. Nopenalties existforthenon-utilization oflicences. Licences arenottransferable
among exporters. Alicence application and/or anexportation could bemade atanytimeduring the
year.
- Other measures
76.73Therepresentative ofArmenia noted thatinorder toprevent exports atartificially lowprices,
ortheunder-invoicing ofexports, theResolution 124established alistofminimum prices eachquarter
foralistofselected commodities asareference basefortaxpurposes. Witheffect from29December
1995, thislistonlycovered ferrous andnon-ferrous metals (HS72.00, 72.04, 74.0-74.14. 75.
76.0-76.14, 78.80, 81.0, 81.13). According toResolution 124commodities ofthementioned listcould
beexported atprices lessthantheminimum established prices. theMinistry oftheEconomy had
established alistof“minimum ”prices eachmonth foralistofselected commodities. With effect
from 1January 1995, thislistonlycovered ferrous andnon-ferrous metals. Ifanexporter declared
thevalue ofcommodities destined forexport atlessthantheminimum established price, anamount
equal tothedifference waspayable before theexportation isauthorized. Theminimum prices formost
ofthecontrolled items areestablished withreference toquotations ontheLondon Metal Exchange,
lessadiscount of20-30 percent. However, thecorporate taxliabilities offirms thatexport ferrous
andnon-ferrous metals andscrap werecalculated onthebasisofthese reference prices ifthedeclared
export price isbelow thereference amount. Inthiscasetheexporter wasrequired alsotopresent the
certificate ofconformity oftheAgency ofStandardization Measurement andCertification (SARM).
TheCustoms Bodies oftheRepublic ofArmenia mustinform theTaxInspectorate about thetransaction
within amonth.WT/ACC/SPEC/ARM/1/Rev.1
Page47
- Export subsidies
77.74Therepresentative ofArmenia stated thatArmenia didnotofferanyexport incentives orexport
subsidies ofanykindatthepresent time, nordidArmenia haveanydutydrawback ortemporary
admission arrangements inrespect ofdutiable imports usedinexport production. TheGovernment
believed thatexport expansion wasvitaltoArmenia ’sfuture economic viability. Forthisreason,
consideration wasbeing given tovarious waysofstimulating exports, particularly through promotional
activities. TheGovernment didnot,however, intend torelyonexport subsidies aspartofanexport
expansion programme.
78.75TherepresentativeofArmeniaconfirmedthattheGovernmentdidnotmaintainsubsidieswhich
metthedefinition ofaprohibited subsidy, within themeaning ofArticle 3oftheAgreement onSubsidies
andCountervailing Measures, anddidnotseektransitions toprovide fortheprogressive elimination
ofsuchmeasureswithinafixedperiodoftime.TherepresentativeofArmeniastatedthattheGovernment
ofArmenia would ensure thatanyexport subsidy programme would bewasfullyinconformity with
therequirements oftheAgreement onSubsidies andCountervailing Measures uponArmenia 'saccession
totheWTO. [TheWorking Party tooknoteofthiscommitment.]
- Internal policies affecting trade ingoods
- Industrial policy, including subsidies
79.76Therepresentative ofArmenia stated thatArmenia ’sindustrial policy aimed toensure more
efficient useofdomestic resources within amarket-oriented framework. Acentral policy objective
affectingindustrywasprivatization.Approximately30percentofallenterprisesinArmeniaarepublicly
owned, while 70percentarenon-public. which hadsofaronlytouched asmall share ofthe
manufacturing sector. Hestated thattheGovernment estimated thatapproximately 9586percentof
industrialoutputemanatedfromthepublicsector.InresponsetoquestionstherepresentativeofArmenia
stated thatpending completion oftheprivatization programme, theGovernment required State-owned
enterprises tooperate according tomarket principles. Enterprises inArmenia wererequired toacquire
theirinputs ontheopenmarket. Mostfirms hadnotyetputproper market-economy accounting systems
intouse,buttheyweredeveloping them. Inresponse torequests forinformation concerning thepayment
ofdirect subsidies, therepresentative ofArmenia stated thatsince thebeginning of1995, almost no
direct subsidies hadbeengranted toindustry. Inprevious years direct subsidies hadbeenprovided
onafairly large scale viaconcessionary credits tofirms. Hefurther noted thattheGovernment inWT/ACC/SPEC/ARM/1/Rev.1
Page48
general didnotretain production subsidies intheindustrial sector, andnoindirect subsidies wereapplied
onwater andelectricity supplies intheagricultural sector.
80.77Therepresentative ofArmenia saidthattheonlybeneficiaries ofdirect subsidies in1995were
thefirms engaged intheproduction ofstrategic (military) equipment, forwhom subsidies aretobe
granted forfurther construction andtheequipping ofplant. Thebeneficiary firms donotexport their
products. Anyremaining indirect subsidies thatmight ariseasaresult ofclearing arrangements were
disappearing because ofthecontraction (andeventual elimination) ofinter-governmental clearing
contracts. Moreover, procurement viaState orders, which could alsoentail indirect subsidies, was
being replaced bycompetitive tendering procedures.
81.78Therepresentative ofArmenia further added thatbecause thecontinuing reform ofpolicies
might indirectly confer subsidies onindustries, theGovernment alsomaintained asubstantially
deregulated business environment which, when combined withtheGovernment 'sopen investment
policies, meant thatthere were effectively nobarriers tomarket contestability. Firms were freeto
enterandexitsectors onthebasisoftheirownmarket-based decisions. Additional measures designed
tosafeguard andstrengthen thisbusiness environment were theestablishment ofanti-monopoly and
bankruptcy laws. TheLawontheBankruptcy ofBanks andtheLawontheBankruptcy andFinancial
Recovery ofJuridical Persons, ofEnterprises Without theStatus ofaJuridical Person, andof
Entrepreneurs entered intoforce respectively on1October 1996andon1March 1997. Therelevant
statutes were under preparation.
82.79Therepresentative ofArmenia stated thattheGovernment ofArmenia would ensure thatits
subsidy regime wasinfullconformity withtheAgreement onSubsidies andCountervailing Measures
from thedateofitsaccession totheWTO. [TheWorking Party tooknoteofthiscommitment.]
- Technical Barriers toTrade/Sanitary andPhytosanitary Measures
83.80Therepresentative ofArmenia noted that,afterthedeclaration ofindependence, Armenia
tookstepstoestablish anddevelop itsnational systems ofstandardization, metrology andcertification.
Relevant lawsregulating those systems aretheLawonStandardization andCertification andtheLaw
onUniformity ofMeasurements accepted bytheNational Assembly on30April 1997. Thetwolaws
incorporated thecoreprinciples oftheWTO TBT Agreement. TheLawonStandardization and
Certification provided thelegal basis intheRepublic ofArmenia forthestandardization aswellasWT/ACC/SPEC/ARM/1/Rev.1
Page49
certification ofproducts, services, labour (processes) andquality systems. Thiswould bemandatory
forthebodies ofState governance, aswellasforenterprises, institutions andprivate entrepreneurs
andwould define themeans fortheprotection ofinterests ofconsumers andtheState through the
elaboration andapplication ofnormative documents onstandardization. Italsodefined therights,
obligations andresponsibility oftheparticipants inthecertification process. TheLawonUniformity
ofMeasurements defined thelegalbasis forensuring theuniformity ofmeasurements, regulated the
relations ofthebodies ofStategovernance withenterprises, institutions andprivate entrepreneurs on
issues relating totheproduction andissuance ofmeasurement instruments, andtheuseandrepairs
thereof. Itwasdirected atprotecting therights andrightful interests ofconsumers andthestatefrom
thenegative impact ofinaccurate results ofmeasurements. TheDepartment forStandardization,
Metrology andCertification (SARM) wasdenoted ascoordinator ofstandardization, metrological and
certification activities inArmenia, anditsrights andobligations were defined bytheLaw on
Standardization andCertification andtheLawonUniformity ofMeasurements. Being thenational
bodyincharge oftheadministration related tostandardization, certification andmetrology inArmenia
itsresponsibilities included thecreation andadministration ofnational standardization andcertification
systems; theadoption ofnational standards andclassifications; theapplication ofinternational standards;
thepublication ofofficial information inthefields ofstandardization andcertification; accreditation
ofcertification bodies andtesting laboratories; dealing withappeals anddisputes oncertification matters,
etc.SARM wasinthestructure oftheMinistry ofIndustry andTrade. SARM waspresided over
bytheState Chief Inspector, whose rights andobligations were contained inArticle 27oftheLaw
onStandardization andCertification andArticle 24oftheLawonUniformity ofMeasurements. SARM
isacollegial body thattakes decisions bymajority vote.
Armenia wasintheprocess ofdeveloping itsstandards system. ANational Certification System had
beencreated. Itsprimary purpose wastoprotect consumers andtheenvironment, andtopromote
thequality reputation ofArmenian products inforeign markets. TheNational Certification Body,
ArmStateStandard, wasresponsible fordefining standards andaccrediting standards certification bodies
andlaboratories within theframework oftheNational Certification System.
84.81Therepresentative ofArmenia added thattheNational Standardization System wasestablished
withamission toprovide:
- thesafety oftheproducts, labour (processes) andservices forthenatural environment, human
life,health andproperty;
- thetechnical andinformative compatibility andinterchangeability;WT/ACC/SPEC/ARM/1/Rev.1
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- theconformity ofquality oftheproduct, labour andservices withthedevelopment levelof
science, technique andtechnology;
- uniformity ofmeasurements;
- preserving ofalltypes ofresources;
- thesecurity ofeconomic objects, intheevent ofoccurrence oftechnical andother disasters
andemergencies;
- thedefense ofthecountry andthereadiness formobilization.
Themain provisions ofthatsystem anditsprocedures forpreparation, adoption andapplication of
Armenian standards wereestablished bynational basicstandards ofAST1series. About 210Armenian
standards hadbeendeveloped bythetechnical committees andadopted bySARM since 1993. The
great partofthestandards applied inArmenia wereinternational andregional standards. More than
18,000 interstate standards ofCIScountries were included inthenational fundofstandards. 860
international standards havebeenaccepted inArmenia atpresent and30percentofnational standards
would bealigned tointernational standards by2000. Forthepreparation, adoption andapplication
ofstandards, SARM followed theTBTCode ofStandards Good Practice andwillsignitfromthedate
ofArmenia ’saccession toWTO. SARM wascooperating withstandards organizations inothercountries
andisamember oftheInternational Organization forStandardization from1January 1997. Presently
SARM ismember ofISO, CAC, EASC which enables Armenia toparticipate through technical
committees intheelaboration ofinternational andregional standards andtoapply these standards in
Armenia. Theonlyenquiry point operating inArmenia andtheonlybodyresponsible fornotifications
wasSARM, which would implement theobligations established inaccordance withArticle 10ofTBT.
Besides thepublication ofamonthly journal (Hayast), which provides current information onissues
relating tostandards andcertifications. SARM used theINTERNET communication system for
notification. Anewresolution oftheGovernment wasbeing prepared fortheclarification ofrights
andresponsibilities ofSARM asanenquiry point.
ArmStateStandard cooperated withtheMinistries ofHealth, Agriculture andFood inmatters relating
tosanitary andphytosanitary measures. Compulsory standards existforarange offoodstuffs, electrical
goods, alcoholic andnon-alcoholic beverages, tobacco products, andchildren ’sclothes. However,
Armenia hadnotsofardeveloped anyseparate policies orprovisions dealing withsanitary and
phytosanitary measures. ArmStateStandard wasunder thejurisdiction oftheMinistry oftheEconomy.
Itwaspresided overbytheState Chief Inspector, whose rights andobligations were contained in
Article 27ofthedraftlaw. ArmStateStandard wasacollegial body thattakes decisions bymajority
vote. Compulsory certification fortheproducts concerned wastheresponsibility ofArmStateStandardWT/ACC/SPEC/ARM/1/Rev.1
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although thisbody wasempowered toappoint another third party toundertake certification work.
ArmStateStandard wascooperating withstandards organizations inothercountries andwasanobserver
intheInternational Standards Organization. Asnecessary, standards would beadapted tointernational
norms, andnewstandards would based onISO9000. Therelevant lawsregulating Armenia ’stechnical
certification system aretheLawonStandardization andCertification andtheLawonIdentity of
Measurements. Boththese lawswere stillindraftform andunder theconsideration ofParliament.
TheLawonStandards defines therights andobligations ofArmStateStandard, andoftheproducers
andimporters ofgoods subject tocertification. Thecertification system inArmenia iscoordinated
bytheGOST standards, Series 5.Thecertification system wasbased ontherequirements ofISO/IEC
2,25,28,40. Work wasalsoproceeding onthedevelopment ofanArmenian Certificate ofQuality,
which would begranted toproducers whocomply withspecified standards. Newlegislation wasbeing
drafted toreplace thepre-independence statute.
85.82Therepresentative ofArmenia further added thattheNational Certification System was
established according totheLawonStandardization andCertification taking intoconsideration the
international experience inthefieldofcertification, particularly ISO/IEC Guides 7,22,23,25,27,
28,58,60,65andEuropean standards ofEN45000 series. Theobjectives ofcertification were as
follows:
- creation ofconditions foractivities oftheeconomic entities intheinternal market ofthe
Republic ofArmenia, aswellasintheinternational economic, scientific- technical cooperation
andinternational trade;
- support ofconsumers inrightselection ofproducts, labour, services andinaccess ofobjective
information about them;
- control overthesafety ofproducts, labour, services forthenatural environment, thehuman
life,health andproperty;
- conformation oftheproduct, labour, services withthequality characteristics claimed bythe
producer;
- protection ofconsumers ’rights.
Theaccreditation ofcertification bodies andtesting laboratories inArmenia wereoperated bySARM.
Theprovisions onnational certification system, thecriteria andprocedures foraccreditation and
certification wereestablished bynational standards ofAST5series. About adozen certification bodies
andahundred testing laboratories wereaccredited. Theaccredited certification bodies wereoperatingWT/ACC/SPEC/ARM/1/Rev.1
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product certification national programme thathaditsowncertificate andmark ofconformity, product
certification procedure, register ofcertificates andprocedure fordealing withappeals thatwere
established byArmenian standards. Theconformity assessment procedures applied inArmenia
corresponded tointernational criteria andTBTArticles 5-9.
Inresponse toquestions concerning theprocedure forobtaining acertificate ofquality fortobacco
andspirits, therepresentative ofArmenia stated thatcertificates ofquality fortobacco andspirits were
issued byArmStateStandard. Thecertificates weresubject toperiodic renewal onthebasisofatechnical
examination oftheproducts concerned. Therelevant certificates must beproduced atthetimeof
importation. Thecriteria forissuing certificates arespecified intherelevant technical standards.
ArmStateStandard published amonthly journal called Hayast which provides current information on
issues relating tostandardization andcertification. Theenquiry points werenotyetfullyoperational
duetoalackofappropriate facilities andpersonnel. Itisestimated thattheymaytakefourtofive
years tobecome fullyoperational. ArmStateStandard wastheonlybodyresponsible fornotifications.
ArmStateStandardhadsignedcooperationagreementswithcounterpartbodiesintheRussianFederation,
Ukraine, Belarus, Georgia andTurkmenistan. These wereAgreements onProduct Certificates, Quality
Promotion Systems, Certification Bodies andMutual Recognition ofAccredited Testing Laboratories.
Thepurpose ofthose agreements wastoharmonize standards andprocedures, andtoallow formutual
recognition oftesting andcertification. Asimilar agreement hadbeensigned between ArmStateStandard
andtheStandards Institute oftheIslamic Republic ofIran.
86.83Inresponse toquestions concerning tomandatory certification, therepresentative ofArmenia
statedthatArmeniaappliedmanufacturer’sdeclarationsupportedbypost-marketsurveillanceprocedures,
aswellasinternationally accepted pre-market certification, which concerned totheproducts subject
tomandatory certification. Bothcertification mechanisms werefixed intheLawonStandardization
andCertification. Mandatory certification activities were coordinated bySARM andconducted by
certification bodies andtesting laboratories accredited byitaccording totheLawonStandardization
andCertification andregulated byResolutions 417,205,136,which proceeded from thelawand
introduced thelistofproducts subject tomandatory certification intheRepublic ofArmenia taking
intoconsideration thenecessity ofthecontrol overthesafety ofproducts, labour, services forthenatural
environment, thehuman life,health andproperty, aswellastheprotection ofconsumers ’rights.
Presently thisisthefulllistofproducts subject topre-market certification. These products wereselected
taking intoconsideration thereports received fromtheinspection bodies, thetoxins received fromthe
Ministry ofAgriculture, Sanitary-Antiepidemiological StateCentre, frommedia, consumers anddata
fromStatistics Department. Thedrafts oftheseResolutions weresubmitted fordiscussion andcommentsWT/ACC/SPEC/ARM/1/Rev.1
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totherelevant ministries, major enterprises andtraders, other institutions thatdisplayed aninterest
init.Requirements forproducts covered bymandatory certification inArmenia werekepttoaminimum.
Thestandards oftheproducts included inthelistofResolution 205werevoluntary. Compulsory were
onlytherequirements concerning tosafety, health andtheprotection oftheenvironment. Mandatory
certification procedures applied werethesame forbothimported anddomestic products. Certificates
wereissued forproduct types orbatches based ontesting ofsamples, analysis ofproduction system,
quality system certification ordeclaration ofsupplier depending onthescheme ofcertification. These
internationally accepted certification schemes werefixedbyAST5.3.Unlike tomostofCIScountries,
certification activities inArmenia duetotheLawonStandardization andCertification wereregulated
bytheonlyauthorized body-SARM, soavoiding overlap ofrequirements setbydifferent regulatory
bodies. SARM hadsigned cooperation agreements onmutual recognition ofconformity assessment
withappropriate bodies ofseveral countries suchasRussian Federation, Ukraine, Belarus, Georgia,
Turkmenistan, Kazakstan, Moldova, Kyrgyz Republic, Tadjikistan, Uzbekistan andIran. These were
Agreements onMutual Recognition ofConformity Assessment Results. SARM wascarrying out
negotiations withappropriate bodies ofother countries, particularly withBulgaria, China, Romania
andtheUnited States, tosignsimilar agreements oncooperation.
Therepresentative ofArmenia stated thatifArmenia decides toadopt separate machinery orpolicies
relating tosanitary andphytosanitary measures thiswillbedoneinfullconformity withtheAgreement
onApplication ofSanitary andPhytosanitary Measures.
87.84Therepresentative ofArmenia added thatSARM cooperated withtheMinistries ofHealth
andAgriculture inmatters relating tosanitary andphytosanitary measures. Having theobjective to
protect human health, safety andenvironment, theGovernment ofArmenia hadintroduced thelist
ofgoods, some ofwhich fallinthescope ofSPSAgreement, subject tomandatory certification
(Resolution 417of06September 1994, anditsamendments Resolutions 205of5July1996and136
of17May1997) which wasevidence forthefactthatArmenia hadstarted theprocess ofelaboration
ofSanitary andPhytosanitary Measures. In1996, theNational Assembly adopted theLawonState
Agrarian Inspections. Thelawdefined thelegal, economic andorganisation principles ofStateAgrarian
Inspections intheRepublic ofArmenia. Articles 6and7oftheLaw, particularly outlined theactivities
oftheStateInspection forAgriculture, concerning cultivation oflands, useoffertilizers, thestruggle
against plant diseases, insects andweeds, transportation oftoxic substances andmineral fertilizers,
conditions ofconservation andannihilation, aswellaslivestock breeding withrespect toveterinary
services. Thelatter dealtwiththeprotection ofpopulation fromdiseases common tomanandanimals,
theprevention anderadication ofcontagious andnon-contagious animal diseases, transportation,WT/ACC/SPEC/ARM/1/Rev.1
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conservation, useandannihilation ofveterinary medicaments anddisinfectants. Fortheimplementation
oftheLawonStateAgrarian Inspections, draftlawsonPhytoprotection andVeterinary Medicine had
beenworked out.TheLawonPhytoprotection defined thelegal, economic andorganisation principles
oftheState Service ofPhytoprotection oftheRepublic ofArmenia, andregulated relations between
farms, enterprises, organizations andindividuals within theterritory oftheRepublic ofArmenia. The
LawonVeterinary Medicine defined thelegal, economic andorganisation principles oftheStateService
ofVeterinary Medicine oftheRepublic ofArmenia, fixed theregulation fortheprevention ofdiseases
ofanimals,fortheprotectionofpopulationfromdiseasescommontomanandanimals,andforproviding
thepopulation withquality products according toveterinary andsanitary conditions. Thelawregulated
relations between theState body incharge ofveterinary medicine andenterprises, organizations,
entrepreneurs, andindividuals ontheterritory oftheRepublic ofArmenia.
Some members oftheWorking Party noted thatArmenia didnothaveinplacetheprocedural guarantees
needed toensure thatthenewrequirements didnotactasbarriers totrade. Armenia should ensure
thatitstechnical regulations, standards, certification andlabelling requirements were notapplied in
anarbitrary manner inawaythatactsasadisguised restriction oninternational trade.
88.85Therepresentative ofArmenia stated thatallrelevant lawsrelating toTechnical Barriers to
Trade andSanitary andPhytosanitary Measures would bebrought intoconformity withtherequirements
oftheAgreements onTechnical Barriers toTrade andSanitary andPhytosanitary Measures bythe
dateofArmenia 'saccession totheWTO [without recourse toanytransition period]. [TheWorking
Party tooknoteofthese commitments.]
- Trade-Related Investment Measures (TRIMs)
89.87 Therepresentative ofArmenia stated thatArmenia didnotmaintain measures thatwerenot
inconformity withtheAgreement onTrade-Related Investment Measures andwould therefore not
seekatransition fortheprogressive elimination ofsuchmeasures within afixed period oftime. [The
Working Party tooknoteofthiscommitment.]
- State Trading Enterprises
90.88Inresponse toquestions therepresentative ofArmenia stated thattheState monopoly over
foreign trade oftheFormer Soviet Union wasabolished in1989, andwasreplaced byaregistration
requirement fortheconduct ofsuch activity. Byadecree ofthePresident oftheRepublic ofWT/ACC/SPEC/ARM/1/Rev.1
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4January 1992entitled OnForeign Economic Activity, allenterprises registered andoperating inthe
territory ofArmenia, regardless oftheirformofownership, hadtherighttoconduct foreign economic
activity, andarenotsubject toanyadditional registration requirements.
91.89Some members oftheWorking Party noted thatcertain telecoms enterprises were engaged
inState-trading pursuant toArticle XVII oftheGATT 1994. Inresponse torequests forinformation
onenterprises engaged inStatetrading intheRepublic ofArmenia, therepresentative ofArmenia stated
thatbased onthedefinition ofState-trading setoutintheInterpretation ofArticle XVII oftheGeneral
Agreement onTariffs andTrade 1994, Armenia maintained twonoState trading enterprises inthe
telecommunications sector. Basic international telecommunication services andwire-based andcellular
services inYerevan havebeenreserved toArmentel, ajointventure between theGovernment ofArmenia
andaforeign private supplier, inexchange forcommitments byArmentel todevelop Armenia ’s
telecommunications infrastructure. International value-added services havebeenreserved toInfocom,
closed joint-stock company withtheStateinvolvement, alsoinexchange forinfrastructure development.
Armenia maintained nolaw,regulation ormeasure thatgranted exclusive orspecial rights orprivileges
toanyenterprise, intheexercise ofwhich suchenterprises might influence through theirpurchases
orsalesthelevelordirection ofimports orexports. Given theabsence ofStatetrading inArmenia,
thequestionnaire onState trading hasnotbeencompleted.
92.90Therepresentative ofArmenia stated however thatResolution 161ofMarch 1991, asamended
byResolution 415ofJune1995, reserved certain activities exclusively totheStateandrequired that
certain other activities werelicensed bytheauthorities. List1attached toResolution 161identified
eighttypesofactivities thatwerereserved exclusively fortheState. These were: (i)thesaleandpurchase
ofweapons, armaments, narcotics, explosives, radioactive materials andother strong substances; (ii)
theproductionandrepairofweapons,armamentsandexplosives;(iii)thepreparationofdrugs,narcotics,
poisonous andstrongly acting substances; (iv)theconducting ofcourt examinations; (v)thediagnosis
ofthepsychical stateofcitizens; (vi)patenting andconferring copyright; (vii)theissuing ofmoney
andpreparation ofState medals; andstorage, preservation andutilization ofgoldandother precious
metals andsubstances ofmilitary significance. Allthese reserved activities involved theStateinthe
exercise ofitsunique responsibilities, including thepreservation ofnational security, public order,
andthehealth andsafety ofthepopulation. List2ofResolution 415indicated those activities that
required prior authorization andthebody responsible forproviding theauthorization. Aswiththe
items onList1,fewinvolved manufacturing activity. Alltheitems onlist2werecontrolled forsimilar
reasons tothoseitems inList1.Licensing ofeconomic activities included under List2isnon-restrictiveWT/ACC/SPEC/ARM/1/Rev.1
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inthesense thatlicensing decisions arenotmotivated bytradeprotection considerations. Inresponse
toquestions fromWorking Party members, therepresentative ofArmenia stated thatthecoverage of
these reservation powers wasunder review. NoState monopoly existed inrespect oftheproduction
ofpharmaceuticals. However, bothStateandprivate enterprises required licences fromtheMinistry
ofHealth inorder toproduce pharmaceuticals.
93.91Inresponse toquestions whether Armenia intended toreport itsState monopoly ofnatural
gasdistribution under Article XVII, therepresentative ofArmenia replied thatArmgas hadnotbeen
granted exclusive orspecial rights orprivileges inthemarket fornatural gasdistribution. Armgas
wasState-owned andtheGovernment haddetermined thatthisenterprise would betheonlyState-owned
enterprise todistribute gas.Butthisdoesnotprevent anyother entity withmajority private ownership
frompurchasing gasorfrominvolvement ingasdistribution. Inlightofthissituation, theGovernment
ofArmenia didnotbelieve itwasrequired tonotify Armgas under Article XVII. [Some members
oftheWorking Party disagreed thatArmgas wasnotaState-trading enterprise interms ofArticle XVII
oftheGATT 1994. Intheirview, Armgas clearly enjoyed adefactoStatemonopoly ongasproduction
aswellasongasdistribution. Itwashighly unlikely thatArmgas would everbesubject toanyform
ofcompetition. These members requested thattheGovernment ofArmenia alsoinclude Armgas in
those enterprises covered byArticle XVII oftheGATT 1994. ]
94.92Therepresentative ofArmenia saidthatnoStateorprivate enterprises operating inArmenia
hadexclusive orspecial rights orprivileges granted bytheGovernment ofArmenia toconduct
international trade ingoods orservices except those mentioned inparagraph 91.However, henoted
thatalow-interest loanhadbeengranted totheStateenterprise Hayhatsahatik (ArmCereal) inFebruary
1996toacquire andstockpile wheat fromtheEuropean Union Counterpart jointassistance wheat fund.
95.93Therepresentative ofArmenia confirmed thathisGovernment would apply itslawsand
regulations governing thetrading activities ofState-owned enterprises andotherenterprises withspecial
orexclusive privileges andwould otherwise actinfullconformity withtheprovisions oftheWTO
Agreements, inparticular Article XVII oftheGATT 1994andtheUnderstanding onthatArticle; and
Article VIIIoftheGATS. [TheWorking Party tooknoteofthese commitments.] Some members
oftheWorking Party noted thatcertain telecoms enterprises appeared tobeengaged inState trading
pursuant toArticle XVII oftheGATT 1994.WT/ACC/SPEC/ARM/1/Rev.1
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- Freezones, special economic zones
96.94Therepresentative ofArmenia stated thatArmenia didnotmaintain anyfreetrade zones in
which special dutyprivileges ofanykindweregranted. Armenia had,however, established aFrontier
Trade AreaintheMeghri Region, ontheborder withIran. Thezonewasestablished topromote trade
between Armenia andIran. Under thearrangement, Armenian enterprises wereencouraged toestablish
apresence intheborder areaandIranian enterprises were encouraged todothesame ontheirside
ofthefrontier. Forty citizens from eachcountry were entitled toenter eachother’szones inorder
toexplore business andtrading opportunities, butnospecial customs regime orprivileged dutytreatment
wasassociated withanyexchanges agreed onthebasis ofthese contacts.
- Government procurement
97.95Therepresentative ofArmenia informed theWorking Party thatgovernment procurement
inArmenia wasgoverned byGovernment Resolution number 67if8February 1995 "OntheState
Procurement Order oftheRepublic ofArmenia". Pursuant tothatResolution, when government entities
wishedtoprocuregoods,theycoulddosoeitherthroughanentitycalledArmcontract,undertheMinistry
ofMaterial Resources, anyprocurement agent ordirectly fromthemarketplace ontheirownbehalf.
Under thenewapproach toprocurement introduced inthatResolution, 1995, noprocurement entity,
either stateowned orprivate, enjoyed special rights orprivileges. Allinterested parties could participate
inprocurement activities under thecommon rules. Armcontract enjoys nospecial rights orprivileges.
Armcontract canparticipate inprocurement activities under thecommon rules. Entities authorized
toprocure could decide tousetheservices ofArmcontract, could procure ontheirownbehalf, orcould
useanyother procurement agent. These purchases, which were given effect through State Orders,
werefinanceddirectlyfromthebudget,andinvolvedtheacquisitionofgoodsandservicesbygovernment
entities fortheirownconsumption (i.e.notforresale oruseasinputs intoproduction). Inthepast,
thesearrangements hadsometimes involved implicit subsidy elements forthesuppliers concerned, since
prices under StateOrders hadnotnecessarily corresponded tomarket prices. Asmarkets developed,
however,andmorecompetitionoccurred,bothamongArmenianenterprisesandwithimports,subsidized
procurement wasbecoming alessfrequent occurrence.
98.96Therepresentative ofArmenia saidthatwitheffect from 1995, State Orders inexcess of
US$50,000foritemsincluding:electricenergy,varioushealthservicestrainingandeducation,geological
exploration, television broadcasting, water supplies andsewerage weresubject tocompetitive tender.WT/ACC/SPEC/ARM/1/Rev.1
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Inresponse toquestions, therepresentative ofArmenia stated thattender announcements aremade
inofficial periodicals oftheGovernment ofArmenia. Themain criteria forselecting bidsincluded
theprices, thequality oftheproducts orservices offered, operational, technical andservice
characteristics,nationalsecurityrequirements,termsandconditionsofpayment,andtermsandconditions
ofdelivery. Foreign enterprises received equal treatment toArmenian enterprises. Thetenders were
administeredbytheMinistriesandDepartmentsconcerned,orbytheirrepresentatives.Therepresentative
ofArmenia informed theWorking Party thatcurrently theLawonGovernment Procurement wasunder
preparation intheMinistry ofFinance andEconomy (recently formed uponthestructural changes of
theGovernment ofArmenia). Pursuant tothisLaw, agovernmental authority regulating thefieldand
supervising allkinds ofState procurements would beestablished. Stringent criteria would beset
governing qualification, tendering, bidding, evaluation, performance andappeal procedures. The
provisions oftheLawonGovernment Procurement oftheRepublic ofArmenia would beinconformity
withtheWTO Agreement onGovernment Procurement, inparticular thenational treatment and
non-discrimination principles would beguaranteed consistent withtheArticle IIIoftheAgreement
onGovernment Procurement. Theadoption oftheLawwasprojected prior tothedateofArmenia ’s
accession totheWTO. Procurement decisions following theevaluation ofbidsrequired approval
from theMinistry oftheEconomy. Approval bytheMinistry oftheEconomy wasapre-requisite
oftheprovision offunds forprocurement bytheMinistry ofFinance. Afurther lawregulating
government procurement wasunder preparation.
99.97 Inresponse toquestions frommembers oftheWorking Party, therepresentative ofArmenia
stated thattheGovernment ofArmenia haddecided tocommence negotiations tojointheAgreement
onGovernment Procurement from thedateofaccession. [The Working Party tooknoteofthis
commitment.]
- Transit
100.98 Therepresentative ofArmenia stated thatArmenia permitted theunimpeded andtax-free
transit ofgoods through itsterritory, withtheexception ofthose goods whose importation isprohibited,
i.e.weapons, components usedintheproduction ofweapons, explosives, nuclear materials, poisons,
narcotics, strong psychotropic substances, devices foruseinopium smoking, andpornographic material.
These items would onlybeabletotransit Armenian territory withtheexplicit consent oftheGovernment
ofArmenia. Transit goods remain under customs supervision while theyareonArmenian territory.
Armenia wasparty toaplurilateral agreement ontransit tradewithin theframework oftheCISTreatyWT/ACC/SPEC/ARM/1/Rev.1
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onEconomic Union. Thisagreement provided thatsignatories should nottaxorimpede transit trade
through theirterritories. Armenia hasalsosigned abilateral agreement onthissubject withGeorgia.
Similar agreements withIranandtheUkraine areunder consideration.
- Agricultural policy
101.99 TherepresentativeofArmeniasaidthatasinthecaseofindustry,theGovernmentofArmenia
doesnotmaintain stateplanning ofanykindintheagricultural sector. Thesituation intheagricultural
sector isalsosimilar toindustry inrespect ofsubsidies. Thepastpractice ofsupplying concessionary
credits hasbeendiscontinued. Indirect subsidies suchascharging onlyvariable costs onwater and
electricitysuppliesfromfarmers,andgrantingtaxexemptionsforproducersofbasicagriculturalproducts
werethemain means ofsupport provided bythegovernment intheagricultural sector. Thesupport
provided toagricultural producers wasaimed toassist farmers toovercome structural andoperational
difficulties during thetransition toward themarket oriented economy. ,andfarmers nolonger receive
anydirect subsidies. Indirect subsidies arealsominimal, withelectricity supply prices perhaps
representing themostsignificant remaining element. Incontrast totheslowpaceinindustry, Armenia
hasprivatized almost 90percentofagricultural land, andmade landtitles freely transferable.
Agricultural support tables werebeing prepared using the1994 -1996 period asthebaseperiod for
thecalculations oftheaggregate measurement ofsupport which would beusedtospecify Armenia ’s
domestic support commitments.
102.100 Therepresentative ofArmenia added thatasfarasinputs were areconcerned, twolarge
Stateenterprises, Hayagrospasarkum (Armagroservice) andHayberriutyun (ArmProsperity) were
aredominant suppliers ofagricultural services andinputs suchasseeds andfertilizers. In1996,
66percentofeachoftheseenterprises hadbeenprivatized while 34percenthadremained State-owned
intheformauthorized bytheMinistry ofAgriculture (holding). Despite thefactthatthecompetition
remainedsomewhatconstrainedinbothinputandoutputmarketstherewasnothingtostopothersuppliers
fromentering themarket. More newprivate enterprises havebeenentering themarket andincreasing
theirmarket shares, particularly inthemarket offertilizers. Thistendency wasexpected tobecontinued
withthedevelopment ofconditions ofcompetition inthemarket. These enterprises haverecently been
transformed intostock companies inpreparation forprivatization. Theenterprises accept payment
inkindonthebasis ofpre-negotiated contracts, andtheyarerequired tobeself-financing. There is
nothing tostopother suppliers entering themarket. Nevertheless, thepredominance ofthese firms,
together withthefactthattheyreceive atleastsome ofthepayment fortheirservices inkind, meansWT/ACC/SPEC/ARM/1/Rev.1
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thatcompetition remains somewhat constrained inbothinput andoutput markets. TheGovernment
regards thisasatransient phenomenon, since theconditions areexpected todevelop inwhich more
firms become involved inthese activities. Moreover, theState-owned enterprises involved aredue
forprivatization. ALawonAgricultural Policy isbeing prepared. Among other things, itwillconfine
theroleoftheGovernment inthesector totheprovision oftraining, technical support, andextension
services.
103.101 Therepresentative ofArmenia saidthattheGovernment ofArmenia doesnotconsider direct
subsidies asapartofthedevelopment programme oftheagricultural sector maintain anydirect subsidies
totheagricultural sector. Indirectly, however, farmers havebenefited fromtheGovernment ’spolicy
ofcharging onlyvariable costs onwater andelectricity supplies, andofgranting taxexemptions for
producers ofbasic agricultural products. Variable costThese pricing policies haveapplied toallusers
ofelectricity andwater. However, fullcostpricing (costrecovery pricing) wasintroduced forelectricity
in1995, andforwater during thecourse of1996. Since then,nodirect orindirect subsidies areprovided
totheagricultural sector. Thevalue oftheindirect water andelectricity subsidies tofarmers hasnot
beencalculated bytheauthorities. Inaddition, theGovernment supported supports alimited range
ofactivitiesdedicatedtoreparationofirrigationnetwork,torestructuringoffinancialandcommunication
infrastructure, totraining farmers inimproved agricultural techniques, toupgrading seedandlivestock
quality, toconducting pestanddisease control, andtoproviding technical advice andextension services.
These measures fitwiththegreen boxofdomestic support tables asfarastheprovided services were
areavailable toallfarmers andinvolved verymodest budgetary outlays.
104.102 TherepresentativeofArmeniastatedthattheGovernmentofArmeniapaidnoexportsubsidies
onexports ofagricultural products. Accordingly theGovernment ofArmenia would binditsagricultural
export subsidies atzerolevel intherelevant partoftheSchedule ofConcessions onGoods. [The
Working Party tooknoteofthiscommitment.]
V. Trade Related Intellectual Property Rights (TRIPS)
105.103 Therepresentative ofArmenia stated thatthefirststepinthedirection ofintellectual property
protection wastheestablishment oftheArmenian Patent Office in1992. Since December 1992, ithas
beenpossible tofileapplications forpatents inrespect ofinventions, andasfrom August 1993, to
register utility models andindustrial designs. During 1993-96, theArmenian Patent Office received
695400applications forinventions from Armenians and364over100applications fromforeigners.WT/ACC/SPEC/ARM/1/Rev.1
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Anapplicant notanational ofArmenia andnotdomiciled inArmenia mustconduct hisaffairs through
apatent attorney registered withtheArmenian Patent Office.
Industrial property protection
106.104 Inresponse torequests forinformation concerning theintellectual property policy ofthe
Government ofArmenia, therepresentative ofArmenia stated thattheGovernment ofArmenia was
currently engaged inasubstantial programme oflegislative reform. AdraftLawonTrade Marks,
Service Marks andAppellations ofOrigin iscurrently under consideration intheArmenian Parliament.
Theprovisions oftheproposed statute arefullyconsistent withinternational norms inthisarea. A
distinctive feature ofthestatute isthelegal equality itestablishes between trade marks andservice
marks. During 1993-4, theArmenian Patent Office received some 3,000 applications fortrademarks,
service marks andappellations oforigin fromforeign applicants. Butreception ofthese applications
forregistration began aftertheissue ofResolution No.4of19August, 1995, "OnConfirmation of
theTemporary Regulations forTrademarks andService Marks" andPatent Office Order of24October
1995, "Onreregistration offormer Soviet Union valid certificates fortrade andservice marks". In
May1997, theArmenian National Assembly adopted theLawonProtection ofTrade andService Marks
andAppellations ofOrigin, andtheLawonProtection ofTrade Names. Theprovisions oftheadopted
statutes were fullyconsistent withinternational norms inthisarea. Adistinctive feature ofthefirst
ofthese Laws wasthelegalequality established between trademarks andservice marks. Registration
ofthese applications willbegin aftertheadoption ofthedraftlaw,which isexpected inearly 1995.
- Responsible agencies forpolicy formulation andimplementation
107.105 Therepresentative ofArmenia saidthatsince September 1997, policy formulation and
implementation inthefieldareaofintellectual property including industrial property andcopyright
wastheresponsibility oftheMinistry ofIndustry andTrade. Thepolicy implementation inthearea
ofindustrialproperty(patents,utilitymodels,industrialdesigns,trademarks,tradenamesandappellations
oforigin) wasistheresponsibility oftheArmenian Patent Office. ThePatent Office wasisresponsible
forapproving industrial property rightapplications, maintaining thesaState Register ofindustrial
property rights, issuing esanofficial bulletin reflecting itsdecisions, andcooperating eswithhomologue
foreign institutions andinternational organizations. ThePatent Office wasisalsoresponsible forthe
regime covering trademarks.WT/ACC/SPEC/ARM/1/Rev.1
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- Participation ininternational intellectual property agreements
108.106 Therepresentative ofArmenia stated thaton22April 1993, Armenia deposited adeclaration
ofcontinued application oftheConvention Establishing theWorld Intellectual Property Organization
(WIPO). On17May1994, Armenia alsodeposited adeclaration ofcontinued application oftheParis
Convention fortheProtection ofIndustrial Property, Madrid Agreement Concerning theInternational
Registration ofMarks andthePatent Cooperation Treaty.
- Application ofnational andMFN treatment toforeign nationals
109.107 Some members oftheWorking Party noted thatalthough therepresentative ofArmenia
hadstated thatforeigners enjoy national treatment inbothcivilandcriminal procedures before the
courts, itsreplies toquestions concerning administrative review proceedings, dealing withthepowers
ofjudicial branches ofgovernment, suggested thatthejurisdiction ofeconomic courts wasnotavailable
toforeigners fromoutside theCIS.Therepresentative ofArmenia stated thatallcitizens enjoy equal
rights under thelaw,forexample, theLawonPatents provided thatallforeigners enjoyed thesame
rights asnationals ofArmenia inrelation toallpatent matters, including protection ofpatents andlegal
remedies against infringement. Theabove mentioned LawonProtection ofTrade andService Marks
andAppellations ofOrigin, andtheLawonProtection ofTrade Names similarly envisaged fullnational
andMFN treatment forforeigners. Thiswasalsothecaseinrespect totheLawonCopyright,
Resolution No.4of19August 1995“OnConfirmation oftheTemporary Regulations forTrademarks
andService Marks ”similarly envisages fullnational andmost-favoured-nation treatment forforeigners.
Thiswasalsothecaseinrespect oftheLawonCopyright, andanyfuture lawsandregulations adopted
inthesphere ofintellectual property protection.
- Feesandtaxes
110.108 Therepresentative ofArmenia stated thatfeeswerepayable upon filing ofanapplication
andgranting ofapatent. Similar arrangements were areinplace fortrademarks andservice marks
andcopyright. Feeswillalsobechargeable under thelegislation tobedeveloped ontrademarks and
copyright. Allfeesweresetsoastobelimited inamount totheapproximate cover costofservices
rendered provided, andthegranting andprotection ofintellectual property rights wasisnotsubject
totaxation, asanyfeeiscollected onbehalf ofthebudget.WT/ACC/SPEC/ARM/1/Rev.1
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- Substantive standards ofprotection, including procedures fortheacquisition and
maintenance ofintellectual property rights
-Copyright protection
111.109 Therepresentative ofArmenia stated thattheNational Copyright Agency wasestablished
in1993. More than2,000 authors, theatre andconcert organizations areregistered withtheagency
under thelegislation offormer Soviet Union. Aswasmentioned above, intellectual property policy
formulation,includingindustrialpropertyandcopyright,wastheresponsibilityoftheMinistryofIndustry
andTrade. Copyright policy implementation wastheresponsibility oftheNational Copyright Agency,
which registered copyrights, assisted individuals tosecure copyrights, provided advisory services, and
collected andpaidroyalties duetoauthors andtheirsuccessors intitle
112.110 Therepresentative ofArmenia added thatadraftLawonCopyright hadbeenprepared in
theearly 1990'sandwassubmitted totheNational Assembly foritsconsideration. After examination
oftheproposed legislation, however, itwasfeltthatitsprovisions wereinadequate foramodern system
ofcopyright protection. Newlegislation istherefore under preparation. Thenewversion oftheLaw
onCopyright hadbeentherefore submitted forconsideration andwasadopted inMay1996. ThisLaw
onCopyright hadbeenelaborated inaccordance withtheprovisions oftheBernConvention onthis
subject. Itprovides protection fortheproperty rights ofcomputer programs andcompilations ofdata,
aswellasfortheneighbouring rights, i.e.,therights ofphonogram andvideogram producers and
broadcasting andtelevision stations. subject toafirstreading bytheNational Assembly inFebruary
1996. Itwasexpected thatthedraftwillbecome lawbefore theendof1996. Neighbouring rights,
computer programs andcompilations ofdataarealsotobeprotected. ThedraftLawonCopyright
alsoprovided protection fortheproperty rights ofthephonogram andvideogram producers, aswell
asofbroadcasting andTelevision stations. TheLawhadbeendrafted inaccordance withtheprovisions
oftheBernConvention onthissubject.
-Trademarks, including service marks
113.111 Therepresentative ofArmenia informed theWorking Party thatinMay1997, theArmenian
National Assembly adopted theLawonProtection ofTrade andService Marks andAppellations of
Origin andtheLawonProtection ofTrade Names. Asmentioned earlier, adistinctive feature ofthe
firstofthese Laws wasthelegalequality established between trademarks andservice marks. TheLaw
setouttheterms andconditions oftrademark protection, pending thefinalization andadoption oftheWT/ACC/SPEC/ARM/1/Rev.1
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LawonTrademarks, Service Marks andAppellations ofOrigin, Resolution No.4of19August 1995
"OnConfirmation oftheTemporary Regulations forTrademarks andService Marks" hasbeen
introduced. Thisresolution thekinds oftrademarks thatmaynotberegistered, theprocedures for
registering trademarks, therights ofappeal against decisions relating totrademarks, thecircumstances
inwhich trademarks maybeused, andthedocumentary requirements forregistering atrademark.
Trademark protection wasisgranted for10years, renewable forsuccessive periods of10years. The
provisions oftheLawwereinfullconformity withArticles 15,16.1 and17–21oftheTRIPS Agreement.
Provisions ofthetemporary regulation ontrademarks andservice marks contained inResolution No.4
of19August 1995wereinfullconformity withArticles 15,16.1, and17to21oftheTRIPS Agreement.
Asregards theprovisions ofArticle 16.2and16.3oftheTRIPS Agreement concerning established
tradeandservice marks, these werealsotaken intoaccount intheadopted LawonProtection ofTrade
andService Marks andAppellations ofOrigin (unlike theformer Resolution No.4of19August,
1995), andtheywould bedetailed infurther elaborated regulations. ,these willbetaken intoaccount
intheabove-mentioned newdraftLawonTrademarks, Service Marks andAppellations ofOrigin.
114.112 Therepresentative ofArmenia stated thattheabove-mentioned LawonProtection ofTrade
andService Marks andAppellations ofOrigin andtheLawonProtection ofTrade Names came into
force inSeptember 1997. newdraftLawonTrademarks, Service Marks andAppellations ofOrigin
would beadopted within eighteen months ofArmenia ’saccession totheWTO. [TheWorking Party
tooknoteofthiscommitment.]
-Geographical indications, including appellations oforigin
115.113 Some members oftheWorking Party asked howArmenia would protect geographical
indications under theLawonProtection ofTrade andService Marks andAppellations ofOrigin, and
whether thatlegislation would beinconformity withArticles 22to24oftheTRIPS Agreement. The
representativeofArmeniastatedthatgeographicalindicationswerenotexplicitlymentionedinResolution
No4of19August, 1995, sotheprotection forthiskindofproperty would notbeprovided untilthe
LawonProtection ofTrade andService Marks andAppellations ofOrigin became becomes operative.
Therepresentative ofArmenia stated thattheprovisions ofthisadopted LawwerethenewdraftLaw
onTrade Marks, Service Marks, andAppellations ofOrigin would beinconformity withArticles 22
to24oftheTRIPS Agreement. Therelevant provisions inthementioned draftLawhadbeendeveloped
incompliance withtheprovisions oftheParis Convention (Articles 1(2),10,10ter,10bis,6quinquies
B.3), theMadrid Agreement ontheRepression ofFalse orDeceptive Indications ofSource onGoodsWT/ACC/SPEC/ARM/1/Rev.1
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(Articles 1(1),1(2)), andtheLisbon Agreement fortheProtection ofAppellations ofOrigin andtheir
International Registration (Articles 2(1), 2(2), 3,6).
-Industrial designs
116.114 Therepresentative ofArmenia stated thatindustrial designs wereprotected under Article
7oftheLawonPatents. ThisArticle 7wasconsistent withArticles 25and26oftheTRIPS Agreement.
Inresponse torequests forinformation concerning thespecific protection fortextile designs provided
forinArticle 25(2) oftheTRIPS Agreement, therepresentative ofArmenia stated thatalthough textile
designs were notexplicitly mentioned inArticle 78oftheLawonPatents, theywere nevertheless
covered under thatprovision. There wasalsoasimilar reference inArticle 2(TheTypes ofIndustrial
Design") andArticle 5(d)(TheComposition ofApplication") ofTheRules ofPreparation andFiling
theApplication ofIndustrial Design", adopted byArmenian Patent Office on10February 1994.
-Patents
117.115 Therepresentative ofArmenia stated thattheLawonPatents wasadopted inAugust 1993.
Under thelaw,patents aregranted forinventions, utility models andindustrial designs. Thetermof
patent protection is20years forinventions, 1015years forutility models, and1510years forindustrial
designs. These periods were arecounted from thedateoffiling. Patents were granted subject to
requirements thattheobject ofthepatent isnew, involves aninventive stepandiscapable ofthatit
wassuitableforindustrialapplication,andthatnoconflictarosewithrespecttopublicorderandsecurity,
goodmorals andlaw.Where apatentee failstoexploit thepatented object within fouryears fromthe
datethepatent wassecured, anyparty interested intheuseoftheinvention, utility model orindustrial
design mayrequest thatacompulsory licence beissued. Asfaraspatents forinventions were are
concerned, theLawprovides fortheso-called "deferred examination" forathree-year period. Afull
examination ofapatent application wasiscarried outasaruleonlyupon request andpayment ofa
feebytheapplicant oranyother interested party. Some members oftheWorking Party asked whether
Armenia ’sLawonPatents wasinfullconformity withArticles 27to34oftheTRIPS Agreement,
andrequested further information ontheconformity ofArmenia ’ssystem ofcompulsory licensing.
118. Therepresentative ofArmenia stated thattheLawonPatents wasinconformity withArticles
27to34oftheTRIPS Agreement, andamendments concerning compulsory licensing would bemade
totheLawonPatents bytheendof1998. [TheWorking Party tooknoteofthiscommitment.]WT/ACC/SPEC/ARM/1/Rev.1
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119.116 Therepresentative ofArmenia saidthattheowner ofasecurity deed(patent orcertificate)
forinvention orindustrial design granted bythePatent Office oftheSoviet Union andstillinforce,
could mayfilewiththeArmenian Patent Office foranArmenian patent atanytimeduring thevalidity
period oftheexclusive rights. Further, anapplicant whohadfiledanapplication before 8December
1992, toobtain asecurity deedonaninvention oranindustrial design withtheintention ofobtaining
protection alsoinArmenia, andiftheapplication wasstillpending withthePatent Office oftheRussian
Federation, hadaright, before 30December 1995, tofilearequest withtheArmenian Patent Office
thattheapplication befurther processed under Armenian legislation. inventor ’scertificate orindustrial
design certificate, butsuchfiling mustoccur before 30June1995. Some ideaofthepotential volume
ofsuchfilings isgiven bythefactthatiIntheten-year period to1990, residents ofArmenia registered
6,000 inventions withthePatent Office oftheSoviet Union. TheLawonPatents specified thenature
ofpatentable material, theconditions forpatentability, therights ofpatent holders, theconditions of
compulsory licensing, theprocedures forgranting patents, anddispute settlement.
-Plant variety protection
120.117 Therepresentative ofArmenia stated thatArmenia currently hasnolawsdealing withplant
variety protection. Inresponse, some members oftheWorking Party asked howitwasproposed plant
varieties would beprotected inthefuture. Therepresentative ofArmenia stated thatlegislation tocover
theprotection ofplant varieties wasisbeing drafted. Itwasintended thatthislegislation would will
enterintoforcebymid-1998.withineighteenmonthsofArmenia’saccessiontotheWTO.[TheWorking
Party tooknoteofthiscommitment.]
-Layout designs ofintegrated circuits
121.118 Inresponse toquestions concerning thesystem forprotection oflayout designs ofintegrated
circuits, therepresentative ofArmenia stated thatArmenia didnotyethavelegislative protection for
thiskindofintellectual property. Itwasisintended thatlegislation tocover layout designs ofintegrated
circuits would enter intoforce bymid-1998 within twoyears ofArmenia ’saccession toWTO. [The
Working Party tooknoteofthiscommitment.]WT/ACC/SPEC/ARM/1/Rev.1
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-Requirements onundisclosed information, including trade secrets andtestdata
122.119 Inresponse torequests forinformation concerning theprotection oftrade secrets and
undisclosed information inArmenia, notably inview ofArticle 39oftheTRIPS Agreement, the
representative ofArmenia stated thatArmenia hadnotyetdeveloped provisions fortheprotection of
tradesecrets andundisclosed information. Legislation tocover theprotection ofundisclosed information
wasunder preparation. Itwasisintended thatthislegislation would willenter intoforce uponwithin
twoyears ofArmenia ’saccession totheWTO. [TheWorking Party tooknoteofthiscommitment.]
- Measures tocontrol abuse ofintellectual property rights
123.120 Inresponse toaquestion, therepresentative ofArmenia stated thatlegislation regulating
unfair competition wasstillunder preparation andwillenter intoforce upon Armenia ’saccession to
theWTO. [TheWorking Party tooknoteofthiscommitment.]
124.121 Therepresentative ofArmenia alsostated thatcompulsory licensing wasprovided forunder
theLawonPatents. Incases involving national security, public order oremergencies, theGovernment
could insist oncompulsory licensing, provided thepatent holder hadnotworked thepatent within four
years ofregistration. Article 16oftheLawonPatents stated thatintheinterests ofnational defence,
maintenance protection ofpublic order orinanextreme emergency situation, theGovernment without
theauthorization oftherightholder, could permit athirdparty tousethesubject matter ofapatent,
obliging thelatter toprovide compensatory remuneration totheright holder work apatent without
theagreement ofthepatent holder, while obliging suchlicensee toprovide compensatory remuneration
tothepatent holder. Anydispute overtheamount ofcompensation hadtobesettled inthecourts.
Acompulsory licence could onlybeobtained ifapatent hasnotbeenusedworked within fouryears
andiftheproposed userhasmade efforts toobtain authorization fromtherightholder afteranattempt
hasbeenmade tosignalicence agreement withthepatent holder. Alicence could notbeawarded
toathird party iftheowner ofapatent could establish thatthefailure tousework thepatent was
attributable tofactors beyond theowner ’scontrol. Similarly, under theadopted LawonProtection
ofTradeandServiceMarksandAppellationsofOrigin,attherequestofanypersontrademarkprotection
could resolution ontrademarks, trademark protection canbenullified byacourtdecision, ifatrademark
hasnotbeenusedwithin fiveyears ofthedateofregistration orpreceding thedateofrequest for
nullification thedateofapplication forregistration. Atrademark owner hastherighttodefend theWT/ACC/SPEC/ARM/1/Rev.1
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non-use ofatrademark, andblock adecision toremove theproperty rightifthereasons fornotusing
thetrademark were beyond thecontrol oftheowner.
- Enforcement
-Civil judicial procedures andremedies
125.122 Therepresentative ofArmenia stated thatcivilcourt procedures werealways available to
dealwithlegalmatters relating tointellectual property protection. Thecourts wereempowered toorder
thepayment ofdamages andcourt expenses. Theother remedies envisioned intheTRIPS Agreement
onTrade-Related Aspects ofIntellectual Property Rights (TRIPS) arealsowithin thedecision-making
authority ofArmenian courts. Inresponse toquestions concerning foreigners 'rights toenforce
intellectual property rights, andwhether theremedies, procedures andpenalties were inconformity
withArticles 42to49oftheTRIPS Agreement, therepresentative ofArmenia stated thatthecivil
courts inArmenia werefullyempowered toprovide theremedies referred tointheabove mentioned
Articles oftheTRIPS Agreement, therepresentative ofArmenia stated thatthecivilcourts inArmenia
werefullyempowered toprovide theremedies referred toinArticles 42to48oftheTRIPS Agreement.
Civil remedies could notbeordered asaresult ofadministrative procedures. Foreigners enjoyed the
samerights asArmenian nationals inthisarea.Remedies against criminal behaviour wereareavailable
underArmenia’scourtsandpenalsystem.ForeignershavethesameaccesstotheseremediesasArmenian
nationals. TheGovernment wasconsidering theamendment ofexisting legislation andintroduction
ofadditional legislation containing remedies thatwere areframed inmore specific terms forthe
enforcement ofintellectual property rights. Themissing provisions were expected tobeincluded in
theCivil,CriminalandProcedureCodes,whichwerenowunderpreparationbytherelevantcommissions
oftheNational Assembly andtheMinistry ofJustice. These Codes were tentatively expected tobe
adopted bythesecond quarter of1998. Suchlegislation isunder preparation intheMinistry ofJustice
andisexpected tobeadopted within twoyears ofArmenia ’saccession totheWTO. [TheWorking
Party tooknoteofthese commitments.]
126.123 Some members oftheWorking Party asked whether Armenian judicial authorities hadthe
authoritytoorderinjunctionsorprovisionalmeasuresagainstinfringementofintellectualpropertyrights,
asprovided forinArticles 44and50oftheTRIPS Agreement, andwhether administrative authorities
enjoyed similar authority. Inresponse therepresentative ofArmenia stated thatthejudicial authorities
hadthepower toorder injunctions orprovisional measures. Article 33oftheLawonPatents indicated
theareasinwhich remedies maybesought through thecourts intheareaofpatent protection. Article 45WT/ACC/SPEC/ARM/1/Rev.1
Page69
oftheLawonProtection ofTrade andService Marks andAppellations ofOrigin Paragraph 36of
Resolution No.4of1995provides similar provisions inthecaseoftrademarks andservice marks trade
secrets.
-Provisional measures
127.124 Therepresentative ofArmenia stated thatthecivilCourts alsohavethenecessary authority
totaketheprovisional measures envisioned inArticle 50oftheTRIPS Agreement.
-Administrative procedures andremedies
128.125 Therepresentative ofArmenia stated thatcivilremedies could notbeordered asaresult
ofadministrative procedures inArmenia.
-Special border measures
129.126 Members asked whether Armenia hadasystem ofborder enforcement against intellectual
property rights infringements inaccordance withArticles 51to60oftheTRIPS Agreement. The
representative ofArmenia replied thatalthough noexplicit provisions hadsofarbeendeveloped in
thisarea,thejudicial authorities wereempowered totakethekinds ofmeasures envisioned inArticles
51to60oftheTRIPS Agreement. Theprocedures, sanctions andfinesthatwere currently lacking
willbeprovided forintheabove-mentioned newCivil, Criminal andProcedure Codes, which were
nowunderpreparationbytherelevantcommissionsoftheNationalAssemblyandtheMinistryofJustice.
According tothecommitments undertaken byArmenia itslegislation would beinconformity withthe
WTO provisions within sixmonths following itsaccession totheWTO. Inaddition, theCustoms
authorities areempowered toprevent theimportation intoArmenia ofcounterfeit trademark orpirated
copyright goods. [TheWorking Party tooknoteofthese commitments.]
-Criminal procedures
130.127 Therepresentative ofArmenia stated thatatpresent Article 140oftheCriminal Code
provided, thatinfringement ofcopyright, publication (disclosure) ofaninvention before theapplication
filing, appropriation ofinvention ’sauthorship, aswellascoercion orinclusion intocollaboration of
persons notparticipating inthecreation ofaninvention, should bepunished byimprisonment nottoWT/ACC/SPEC/ARM/1/Rev.1
Page70
exceed twoyears orbyafinenottoexceed 300drams. Article 157ofthesame Code stated that
deceiving purchasers andcustomers should bepunished byimprisonment nottoexceed twoyears or
byafinenottoexceed400drams.Inaddition,asmentionedabove,themissingprovisionswereexpected
tobeincluded inthenewCriminal Code, which isnowunder preparation bytherelevant commissions
oftheNational Assembly andtheMinistry ofJustice. Thelatter would beinconformity withthe
provisions ofPartIIIoftheTRIPS Agreement. ,criminal procedures existed forcopyright infringement
involving scientific knowledge, literature, music andart.Penalties thatcould beimposed included
imprisonment fortwoyears oramaximum fineofthree hundred drams. Inaddition, theMinistry
ofJustice isdeveloping newcivil, criminal andadministrative procedures andremedies. Thelatter
willbeinconformity withtheprovisions ofPartIIIoftheTRIPS Agreement. Therelevant legislation
would willenterintoforce within sixmonths following twoyears ofArmenia ’saccession totheWTO.
[TheWorking Party tooknoteofthese commitments.]
- Laws, decrees, regulations andother legal actsrelating totheabove.
131.128 Some members oftheWorking Party stated thatsince 1992, Armenia hadhadbilateral
commitments fortheprotection ofintellectual property rights. Armenia should accelerate itslegislative
process toensure thefullimplementation oftheTRIPS Agreement from thedateofitsaccession to
theWTO. Inaddition, some members oftheWorking Party requested clarification ofthestatus of
thedraftLawonTrade Marks, Service Marks andAppellations ofOrigin adopted byinParliament,
andwhether thelegislation wasinfullconformity withArticles 15to21oftheAgreement onTrade-
Related Aspects ofIntellectual Property Rights. Therepresentative ofArmenia replied thatonMay
1997, theArmenian National Assembly adopted theLawonProtection ofTrade andService Marks
andAppellations ofOrigin andtheLawonProtection ofTrade Name which werepending theapproval
oftheDraft LawonTrade Marks, Service Marks andAppellations ofOrigin atemporary regulation,
contained inResolution No.4of19August 1995, wasinforce. Thatregulation wasinfullconformity
withArticles 15to21oftheTRIPS Agreement, including therights specified inArticle 16.
- Statistical dataonapplications forandgrants ofintellectual property rights, aswell
asanystatistical dataontheir enforcement
132.129 Inresponse torequests forinformation concerning thenumbers ofpatent applications filed
inArmenia, therepresentative ofArmenia stated thatduring 1993-96 since thebeginning of1993,
1059 408patent applications hadbeenfiledwiththePatent Office. In544207cases adecision forWT/ACC/SPEC/ARM/1/Rev.1
Page71
granting aprovisional patent wasadopted granted, in12859casesapatent wasrefused ortheapplication
waswithdrawn, and515142applications wereunder examination. During 1994-96, 15applications
forobtaining industrial design patents werefiled, 8from foreigners, andeachwasgranted apatent.
Asregards trade andservice marks andappellations oforigin, afteradoption oftheLawonNational
DutyinSeptember1996,1513applicationspassedthepreliminaryexaminationand513tradeandservice
markswereregisteredbytheArmenianPatentOffice.Underthenewlegislationmorethan1200authors,
theatre andconcert organizations were registered bytheNational Copyright Agency.
133.130 Inresponse toquestions regarding when Armenia would beinposition tofullyimplement
theWTO provisions onTRIPS, therepresentative ofArmenia stated thatduetotheneedtoembark
upon asignificant legislative programme toencompass alltheintellectual property rights covered by
theTRIPS Agreement, Armenia would require atransition period ofthree years following itsWTO
accession. Therepresentative ofArmenia stated thattheGovernment ofArmenia [would bring all
other relevant lawsintoconformity withtheTRIPS Agreement within sixmonths ofitsaccession to
theWTO.] [Therepresentative ofArmenia stated thattheGovernment ofArmenia would apply the
provisions oftheAgreement onTRIPS nolaterthanthedateofitsaccession totheWTO, without
recourse toanytransitional period.] [TheWorking Party tooknoteofthiscommitment. ]
VI. Policies Affecting Trade inServices
- General
134.131 Inresponse toquestions, therepresentative ofArmenia informed members oftheWorking
PartythatArmenianlawsandregulations,andthepolicyframeworkdidnotgenerallydistinguishbetween
trade ingoods andtrade inservices. Therights totrade were enshrined intheLawonEnterprises
andEntrepreneurial Activities. Allenterprises mustberegistered andtheregister isopentopublic
scrutiny. These requirements apply toalljuridical persons, whether theyarecorporations orsole
entrepreneurs.
135.132 Inreply torequests foranexplanation oftheGovernment ofArmenia 'sunderstanding of
thedifferent modes ofsupply, therepresentative ofArmenia noted thatinterms ofthemodes ofsupply
identified intheGeneral Agreement onTrade inServices (GATS), theLawonEnterprises and
Entrepreneurial Activities wasrelevant forenterprises selling services across frontiers (mode 1),for
service supply through commercial presence (mode 3),andfornatural persons whoareindependent
service suppliers (mode 4).Consumption abroad (mode 3)wasnotcovered inthiscontext. ArmeniaWT/ACC/SPEC/ARM/1/Rev.1
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hadnotdeveloped anypolicies thatrestricted theconsumption ofservices abroad. Moreover, Armenian
nationals andresidents wereatliberty totravel abroad andconsume services within foreign jurisdictions
iftheysowish
136.133 Asfarascommercial presence (mode 3)andnatural persons whoareindependent service
suppliers (excluding thatpartofmode 4dealing withemployees ofservice suppliers) areconcerned,
theLawonForeign Investments covered investment inbothgoods andservices. Thelawestablished
thelegalframework foralltypes ofinvestment involving foreign capital, including jointventures and
wholly-owned enterprises andsubsidiaries, whether theforeign investor isanindividual oranenterprise.
Norestrictions wereimposed onthetemporary presence ofnatural persons inArmenia, whether as
employees offoreign service suppliers orasindependent suppliers ofservices. Inthelatter case,
however,theservicesupplierwouldberequiredtoregisterinArmeniaasabusinessorsoleentrepreneur.
137.134 TheGovernmentofArmeniasubmittedaDraftScheduleofSpecificCommitmentsinServices
indocument WT/SPEC/42. Armenia 'sSchedule ofSpecific Commitments inServices isreproduced
inPartIIoftheAnnex totheDraft Protocol ofAccession.
Banking services
138.135 Therepresentative ofArmenia stated thattheCentral Bank ofArmenia wasresponsible
forregulating thebanking sector. TheCentral Bank granted licenses forestablishment ofcommercial
banks andtheiractivities, andsetandmonitored prudential requirements. Resolution No.131ofMay
1997established theCentral Bank’sauthority inthisarea.Banks could bejoint-stock, limited companies
orcooperative banks, andcould beresident ornon-resident. Banks could belocaliftheirstatutory
capital wasowned byresidents ofArmenia, foreign iftheircapital wasowned bynon-residents, and
joint-venture ifownership wasmixed between resident andnon-resident owners. Based ontheprior
approval oftheCentral Bank, banks could haveasignificant participation inthestatutory fundor
participation exceeding 15percentofitstotalcapital orparticipation exceeding 35percentofitscapital
inthestatutory funds ofallentities, excluding banks andentities conducting theiractivities asitwas
foreseen intheClause IVoftheLawonBanks andBanking. Inthecontext oftheabove mentioned
LawandRegulation No.2,theparticipation inthestatutory ofalegal entity could beconsidered
significant if:WT/ACC/SPEC/ARM/1/Rev.1
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- theparticipant owned more than10percentofalegalentity, given thattheentity wasa
joint-stock company;
- theparticipant ’sequity interest inthestatutory capital alegalentity exceeded 10percent,
given thattheentity wasalimited company;
- theparticipant ’sshare (vote) wasinexcess of10percentoftheparticipant ’stotalvoting
power ofalegalentity, given thattheentity wasacooperative.
There were alsonorestrictions ontheamount ofindividual shareholding ofthestatutory capital of
thebanks. Therepresentative ofArmenia stated thattheCentral Bank ofArmenia wasresponsible
forregulatingthebankingsector.TheCentralBankgrantedlicencesfortheestablishmentofcommercial
banks andtheir activities, andsetandmonitored prudential requirements. Resolution No.31of
February 1995 established theCentral Bank’sauthority inthisarea. Banks could bejoint-stock or
cooperative banks, andcould beresident ornon-resident. Banks could belocaliftheirstatutory capital
wasownedbyresidentsofArmenia,foreigniftheircapitalwasownedbynon-residents,andjoint-venture
ifownership wasmixed between resident andnon-resident owners. Anindividual shareholding in
abank could notexceed 35percentofthestatutory capital, except inthecaseofnon-resident
shareholders, when aspecial resolution waspassed bytheBoard oftheCentral Bank.
139.136 Therepresentative ofArmenia saidthattheCentral Bank wasrequired toconsider alicence
application within onemonth. Alicence could berefused iftherequired documents didnotconform
withstatutory requirements, ifthebankwould beunable tomeetthenecessary prudential standards,
orifthequalifications oftheproposed topmanagement were inappropriate. Licences could be
subsequently withdrawn ifinitial declarations proved false, ifbanking activity wasnotcommenced
within oneyearofalicence being granted, ifinitial capital wasnotbeenpaidupwithin oneyear,
ifactivities were carried outoutside theauthorized sphere ofactivities, orifabankfailed toabide
byCentral Bank regulations.
140.137 Therepresentative ofArmenia further noted thatareas ofauthorized activity forresident
banks weremaking loans, maintaining accounts, issuing, buying andselling shares, bonds, promissory
notes, letters ofcredit, cheques andcredit cards, factoring, foreign currency transactions, consulting
services, andtransactions involving precious stones, metals andother valuables. Banks wereexplicitly
forbiddenfromdealingininsurance.Non-resident,oroffshorebanks,wereonlyentitledtoofferforeign-
exchange related services, andrequired special authorization fromtheCentral Banktoservice residents
ofArmenia ortoengage indram operations.WT/ACC/SPEC/ARM/1/Rev.1
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141.138 Inreply toquestions seeking more information onrequirements forresident banks, the
representative ofArmenia stated thatprudential requirements forresident banks were defined in
Resolution No.136ofMay1997 78ofApril 1995. They related tominimum statutory capital and
minimum totalcapital, thecapital toassets marginal ratio, acapital toassets ratio, theliquidity ratio,
themaximum exposure toasingle borrower, themaximum exposure tobankaffiliated persons, the
minimum requirement onobligatory reserves allocated withtheCentral Bank, andthenormative for
foreign currency position. Theminimum statutory capital ofthebankwassetupatUS$100,000. The
minimum requirement fortotalcapital ofthebankwascurrently US$350,000, butthisrequirement
would riseinthree successive steps uptoUS$1,000,000 theration between household deposits and
totalcapital, andaminimum reserve requirement withtheCentral Bank. Theminimum statutory capital
wascurrently US$100,000, butthisrequirement would risetoUS$1,000,000 bytheyear2000. Banks
established (registered) after1January 2000 should, within thefirstyearofregistration, raise the
minimum totalcapital uptotheamount equivalent toUS$1,000,000. Thetotalcapital toassets ratio
was5percent,andwould riseintwosuccessive stepsupto10percentbyOctober 1998. Theliquidity
ratio(high liquid tototalassets) wassetupat25percent,andtheminimum ratiobetween highliquid
assets anddemand liabilities was30percentandwould riseintwosuccessive steps upto60percent
by1January 1999. Themaximum exposure toasingle borrower inrelation tothetotalcapital ofthe
bankwas30percent,butthiswould belowered to20percentbyJanuary 1998. Themaximum exposure
toallpersons affiliated tothebank(including thatofsingle persons) inrelation tothetotalcapital of
thebank would be100percentbyJanuary 1998, butthiswould belowered to60percentby
1January 1999. Asof1August 1997theminimum requirement onobligatory reserves allocated with
theCBA against funds attracted bybanks andbranches offoreign banks operating intheRepublic of
Armenia wasdefined as8percent. Starting from 1March 1998 thelongforeign currency position
inbanks (positive difference between foreign currency assets andliabilities) should notexceed 40per
centofthetotalcapital ofthebank, whereas theopenforeign exchange position ofthesecond group
(other foreign exchange, besides currencies included inECUandSDRbasket, aswellasSwiss Francs)
should notexceed 10percentofthetotalcapital ofthebank. Thecapital toassets ratiowas6per
cent, andwould riseto10percentbymid-1996. Theliquidity ratio(liquid tototalassets) was20
percent, butwould riseto35percentbymid-1996. Themaximum exposure toasingle borrower
inrelation tothetotalcapital ofthebankwas50percent,butthiswould belowered to20percent
bymid-1996. Theratioofhousehold deposits tothebank’scapital wasninetoone. Theminimum
reserve requirement withtheCentral Bank was15percent.WT/ACC/SPEC/ARM/1/Rev.1
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142.139 Therepresentative ofArmenia stated thatby1October 1997, 3044resident commercial
banks wereoperating inArmenia, mostofthem being joint-stock companies. Another 30banks had
beenclosed inthelastthree years, Fifteen banks hadclosed inthelasttwoyears, either voluntarily,
orupon theinsistence oftheCentral Bank. There were sixresident banks withtheshare offoreign
capital above 50percent. Total bankcapital hadincreased by61.9percentoverthelast12months
andamounted to12,010 million Drams (US$ 24.0million), totalassets increased by64.6percent
amounting to103,481 million Drams (US$207.0 million). Theforeign share intotalbankcapital had
decreased by2.1percentage points amounting to43.3percentintotalbankcapital. TheGovernment
ofArmenia wasseeking tostrengthen thefinancial system byensuring theviability ofresident banks.
There arefivebranches ofRussian banks operating inArmenia asnon-resident banks. There arefour
foreign non-resident banks operating inArmenia andoneforeign resident bank. TheGovernment of
Armenia wasseeking tostrengthen thefinancial system byensuring thatresident banks areviable.
Mergers among small banks wereencouraged, andstandards werearegradually being raised through
more stringent prudential requirements. Nobarriers existed totheestablishment offoreign-owned
resident banks, provided theymetmeet theCentral Bank’slicensing andprudential requirements.
Non-resident banks, however, enjoyed onlyenjoy limited access tothebanking market. Duetothis
factfivebranches ofRussian banks andfourbranches offoreign banks operating inArmenia as
non-resident banks either ceased theiroperations orhadbeenreregistered asforeign-owned resident
banks.
- Insurance services
143.140 Therepresentative ofArmenia informed members oftheWorking Party thattheinsurance
industry inArmenia wasregulated bytheLawonInsurance, adopted inNovember 1996. According
tothisLawtheMinistry ofFinance andEconomy implemented supervision overtheinsurance industry
andsetupregulations governing itMinistry ofFinance, which alsodefined regulations governing the
industry. Allregulatory authority relating toinsurance rested withtheCentral Government. TheLaw
required specific types oflegal entities, either joint-stock orlimited companies, tobelicensed for
operation asinsurance suppliers. TheMFN principle applied tothissector. Inreply toquestions on
more information onrequirements forinsurance companies, therepresentative ofArmenia stated that
theprudential requirements forinsurance companies were defined bytheLawonInsurance andby
thegovernmental Decree No.368issued inNovember 1996, andDecree No.174issued inJune1997.
They related toaminimum statutory capital, liabilities toassets margin ratioandaliquidity ratio. The
minimum statutory capital wassetup20.0million Drams (US$40,000). Theassets tototalunderwrittenWT/ACC/SPEC/ARM/1/Rev.1
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liabilities marginal ratiowere1to15.Theliquidity ratio(high liquid tototalassets) was50percent.
Asof1October 1997, 15insurance companies werelicensed bytheMinistry ofFinance andEconomy.
Their totalcapital hadamounted to880million Drams (US$1,76 million). Theforeign participation
was506million Drams (US$1.01 million) amounting to57.5percentintotalcapital ofinsurance
companies. Asof1July1997, thetotalamount ofinsurance premiums collected bytheinsurance
companies registered inArmenia was93.6million Drams (US$0.187 million) against thetotalamount
of3456.7 million Drams (US$7.91 million) ofliabilities underwritten. Them.f.n. principle applies
tothissector.In theGovernment ofArmenia 'sopinion, thesector wasunder-regulated andwould be
subject tofurther legislative attention inthenearfuture. Work wasproceeding intheMinistry ofFinance
onalawoninsurance. During thelastfiveyears, theMinistry ofFinance hadissued 71licences to
insurance providers inArmenia. Ofthese, threehadsubsequently ceased operations. Three insurance
companies hadforeign equity participation (twoRussian andoneSwedish). Sofar,insurance companies
hadnotspecialized, although thiscould change inthefuture. While Armenian nationals faced no
restrictionsinpurchasinginsuranceabroad,andforeigninsurancecompaniescouldadvertisetheirservices
inArmenia, foreign insurance providers were required tobeestablished andlicensed inArmenia if
theywished tosellinsurance policies inArmenia onArmenian territory. There werenorestrictions
upon foreign enterprises wishing tobecome established inthismanner, provided thattheymetthe
necessary prudential requirements.
144.141 Some members oftheWorking Party asked forconfirmation thatcross-border supply and
consumption abroad ofinsurance activities waspermitted particularly asregards maritime, airand
transport insurance, aswellasreinsurance. Therepresentative ofArmenia stated thatconsumption
ofinsurance abroad ofinsurance wasnotsubject toanyrestriction, butaprerequisite forthesaleof
insurance within Armenia wasthattheseller ofinsurance beregistered andlicensed asajuridical person.
- Telecommunications
145.142 Therepresentative ofArmenia informed members oftheWorking Party thattheMinistry
ofTelecommunications wasresponsible forpolicy andregulation inthetelecommunications sector.
TheState telephone company, Armentelecom, waspreviously theonlysupplier ofalltypes ofis
responsible forallother telecommunication services throughout Armenia, bothlocalandlong-distance.
Nobarriers toentry exist inthese sectors ofthemarket. Inview ofthepoorstateofArmenia ’s
telecommunications infrastructure, theGovernment haddecided totender foraforeign partner ina
jointventure thatwould havemonopoly rights tosupply certain basic telecommunication services inWT/ACC/SPEC/ARM/1/Rev.1
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return forexplicit commitments oninfrastructure development. Thetender waswonbyaUnited States '
based company andtheresultant joint-venture company, Armentel, wasestablished on1July1995.
TheGovernment ofArmenia heldholds 51percentoftheequity andtheforeign partner heldholds
49percent. Theservices, which hadbeenreserved exclusively forArmentel, wereinternational basic
telecommunications services, allwire-based services inMunicipal Yerevan, andcellular telephony
services inYerevan. Thecontract hadaduration of20years, butcanberescinded iftheforeign partner
doesnotdeliver onthestipulated infrastructure development commitments within theagreed time-frame.
Armentel would willleaselinesfortheprovision ofvalue-added services byother suppliers, andmight
maysubcontract various services tointerested parties. Access toallother segments ofthebasic
telecommunications market remained opentodomestic andforeign suppliers onanon-discriminatory
basis. Bytheendof1996 theGovernment announced itsintention tosellwithin ayearitsshares in
Armentelthroughanopeninternationaltenderwithsubsequentreductionoftheexclusiverights’duration
to15from previously granted 20years. However, bytheendof1997 thetender stillhadnotbeen
concluded.Internationalvalue-addedserviceshavebeenreservedtoInfocom,closedjoint-stockcompany
withStateinvolvement, alsoinexchange forinfrastructure development. Other suppliers could provide
value-added services between points within theterritory ofArmenia, provided thatcorresponding
permissionwasgrantedbytheMinistryofTelecommunications.Uponthis,theaccesstotheinternational
network hastobenegotiated withInfocom. Ifanagreement could notbeattained between parties,
theMinistry ofTelecommunications possessed ultimate authority toensure network access foranew
entrant.
- Professional services
-Accounting andauditing services
146.143 Therepresentative ofArmenia responded toquestions fromsome members oftheWorking
Party inrelation theaccounting andauditing services sector, bystating thataccountancy andauditing
services wereregulated bytheMinistry ofFinance andEconomy, onthebasisofatemporary Resolution
No.581of1994, pending theestablishment ofalawonauditing. AState enterprise, Finaudit, was
responsible forauditing government departments thatspend money fromthebudget. Finaudit could
alsoofferauditing services tothepublic sector ingeneral ortheprivate sector, butincompetition with
otherauditing enterprises. Intheprivate sector, domestic andforeign auditors wereatliberty toestablish
operations domestically, subject tomeeting Armenia ’sregulations andpassing anexamination.
Successfulcandidateswereprovidedwithacertificatethatallowsthemtobelicensedandtoofferauditing
services. Some 15foreign individuals currently heldlicences. TheMinistry ofFinance andEconomyWT/ACC/SPEC/ARM/1/Rev.1
Page78
wasresponsible forthislicensing process, except inthecaseofauditors ofbanks, whowererequired
toobtain acertificate from theCentral Bank.
-Legal services
147.144 Inreply torequests formore information concerning thelegal services sector, the
representative ofArmenia informed members oftheWorking Party thatthemainlawyers ’organization
inArmenia wastheCouncil Collegia ofAttorneys, previously under theauthority oftheMinistry
ofJustice,andcurrentlyfunctioningasanindependentprofessionalorganizationwhichwasintheprocess
ofbecoming independent oftheMinistry ofJustice. Itrepresented about 250lawyers whopractised
incourt andrunthenetwork ofithadoffices alloverthecountry. TheCouncil Collegia ofAttorneys
wascurrently trying seeking toexpand itsroleanditsmembership. Membership oftheCollegia was
notobligatory forpractising lawyers, butallpractising lawyers mustbelicensed bytheMinistry of
Justice, whether theywereinvolved incourt representation oracting inanadvisory role. Apart from
thegeneral legalbasisforactivities provided bytheLawonEnterprises andEntrepreneurial Activities,
noother legislation hasbeenestablished inthissphere. Alessactive, butmore widely representative
body, wastheLawyers Association ofArmenia. Itsmembership was,apublic organization withthe
membership ofapproximately 5,,000 individuals. TheAssociation encompassed abroad range of
law-relatedprofessionalsprofessions,includingattorneys,judges,academicsandstudents.Approximately
50lawoffices operated inArmenia, mostofwhich areregistered assoleentrepreneurs. Membership
oftheCouncil ofAttorneys wasnotobligatory forpractising lawyers, aswellasthatoftheLawyers
Association, andtheadmission rules forforeign citizens were setupbythecharters ofthese
organizations. However, allpractising lawyers havetobelicensed bytheMinistry ofJustice, whether
theywereinvolved incourt representation oracting inanadvisory role. Apart fromthegeneral legal
basis forforeign citizens ’entrepreneurial activities provided bytheLaw onEnterprises and
Entrepreneurial Activities andtheLawonLegal Status ofForeign Citizens, noother legislation had
beenestablished inthissphere, national treatment wasguaranteed forforeign legal consultants. At
present, approximately 50lawoffices operated inArmenia, most ofwhich were registered assole
entrepreneurs.WT/ACC/SPEC/ARM/1/Rev.1
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- Judicial, arbitral oradministrative tribunals orprocedures providing forthereview
of,orremedies inrelation to,administrative decisions affecting trade inservices
148.145 Inresponse torequests forclarification ofthejudicial, arbitrage arbitral oradministrative
tribunals providing forreview ofdecisions affecting trade inservices, therepresentative ofArmenia
explained thatArmenian Court system could beusedforlitigation (regular courts) andarbitration
(arbitrage arbitral courts). Service suppliers withgrievances relating toadministrative decisions would
notnormally seekremedies through litigation orarbitration, until theyhadexhausted theirrightto
appeal totheadministrative organ directly responsible forthedecision inrespect ofwhich theyhad
agrievance. Headded thattheLawonJudicial System, which isnowunder preparation bytheMinistry
ofJustice, hasbeen envisaged toprovide alegal baseforsettlement ofdisputes andreview of
administrative decisions affecting trade inservices. TheLawwasplanned tobeadopted bythesecond
quarter of1998.
- Provisions, including those ininternational agreements, concerning qualification
requirements andprocedures, technical standards andlicensing and/or registration
requirements forthesupply ofservices
149.146 Inresponse toquestions frommembers oftheWorking Party, therepresentative ofArmenia
stated thattheapproach tolicensing/registration andtechnical standards continued tobedeveloped
tocover newareas ofservice activities. Indoing sotheGovernment ofArmenia would ensure that
theprovisions ofGATS Article VIarefullyrespected. Healsonoted thatfewforeign service suppliers
hadsofarbeenestablished inArmenia, andthattheGovernment would welcome greater foreign
participation inthese activities. TheGovernment ofArmenia wasnotparty toanyinternational
agreements forthemutual recognition ofqualifications, andhasnotyetfullydeveloped itsownpolicy
regime inthisarea.
- Provisions governing theexistence andoperation ofmonopolies orexclusive service
suppliers
150.147 FollowingquestionsfromsomemembersoftheWorkingParty,therepresentativeofArmenia
responded thatwiththeexception oftheexclusive arrangements described above inrelation tocertain
telecommunicationsservices,Armeniaretainednomonopolyorexclusivesupplyarrangementsinservices
trade.WT/ACC/SPEC/ARM/1/Rev.1
Page80
- Provisions relating tosafeguard measures astheyapply totrade inservices
151.148 Therepresentative ofArmenia alsonoted thatArmenia hadnolegislative orregulatory basis
upon which itmight apply safeguard measures totrade inservices, andnosuchmeasures havebeen
applied.
- Provisions relating tointernational transfers andpayments forcurrent transactions
ofservices
152.149 InreplytoquestionsfromsomemembersoftheWorkingParty,therepresentativeofArmenia
alsostated thatArmenia didnotretain anyrestrictions oncurrent account transactions asrelated to
trade inservices.
- Provisions relating tocapital transactions affecting thesupply ofservices
153.150 Therepresentative ofArmenia alsoinformed theWorking Party thattheLawonInvestments
guaranteed therights ofinvestors freely totransfer capital.
- Provisions governing theprocurement bygovernmental agencies ofservices
154.151 Therepresentative ofArmenia noted thatthesame provisions forprocurement ofgoods
applied totheprocurement ofservices (seeparagraph 97-98 above).
- Provisionsconcerninganyformofaid,grant,subsidy,taxincentiveorpromotionscheme
affecting trade inservices
155.152 Inresponse torequests forinformation onanyfinancial assistance affecting tradeinservices,
therepresentative ofArmenia informed theWorking Party thatnoStateaidswereprovided toservice
suppliers.WT/ACC/SPEC/ARM/1/Rev.1
Page81
- Market Access andNational Treatment
-Limitationsonthenumberofservicesuppliers/thetotalvalueofservicetransactions
orassets/the totalnumber ofservice operations oronthetotalquantity ofservice/on
output/on thetotalnumber ofnatural persons thatmaybeemployed inaparticular
service sector
156.153 Inresponse torequests forinformation concerning limitations onthesupply ofservices,
therepresentative ofArmenia stated thattheonlylimitation onthenumber ofservice suppliers was
sector-specific, relating tocertain telecommunications services. There werenolimitations onthetotal
value ofservice transactions orassets. There were nolimitations onthetotalnumber ofservice
operations oronthetotalquantity ofservice output. There werenolimitations onthetotalnumber
ofnatural persons thatmaybeemployed inaparticular service sector.
-Restrictions on,orrequirements ofspecific types oflegal entity through which
aservice maybesupplied
157.154 Therepresentative ofArmenia stated thattheLawonEntrepreneurs andEntrepreneurial
Activities defined 20kinds oforganizational forms thatenterprises could take. Accordingly, therange
oflegalentities through which services could besupplied wastherefore verywide. Noparticular type
oflegalentity wasdiscouraged.
-Limitations ontheparticipation offoreign capital
158.155 Therepresentative ofArmenia stated thatthere werenolimitations ontheparticipation of
foreign capital, although Regulation No.31ofFebruary 1995 doesgivediscretion totheBoard of
theCentral Bank tolimitthesizeofindividual shareholdings inresident commercial banks.
-Measures providing forlessthanthetreatment accorded tonational services or
service suppliers
159.156 Therepresentative ofArmenia stated thatnomeasures weremaintained byArmenia, which
provided forforeign services orservice suppliers tobeaccorded treatment lessfavourable thanthat
provided tonational services orservice suppliers. Itmaybenoted, however, thatoffshore banks wereWT/ACC/SPEC/ARM/1/Rev.1
Page82
notentitledtoprovideretailbankingservicesinthesameunrestrictedmannerasresidentbanks.Armenia
didnotmaintain anymeasures inconsistent withMFN treatment inthefieldofservices.
VII. Trade Agreements
160.158 Some members oftheWorking Party requested thatArmenia provide detailed information
ontherange ofFreeandBarter Trade Agreements towhich Armenia wasaparty. Other members
requested information sothattheWorking Party could examine whether Armenia ’splurilateral and
bilateral FreeTrade Agreements wereconsistent withArticle XXIV oftheGATT 1994. Inresponse
totheserequests, therepresentative ofArmenia informed theWorking Party thatArmenia haddeveloped
anetwork ofplurilateral andbilateral trade agreements withvarious countries. Anumber ofthe
arrangements were short-term innature, designed torespond toparticular needs, other agreements
wereviewed asmore durable, representing theArmenian Government ’sperception ofthedirections
inwhich future traderelations should develop. Asamember oftheWorld Trade Organization, Armenia
wouldkeepitsbilateralandregionaltradeagreementsunderreview,notonlytoensurelegalconsistency,
butalsotoensure thecoherence ofArmenia ’strade relations withabroad multilateral framework.
- Plurilateral orregional agreements
161.159 Inresponse tofurther requests forinformation onArmenia 'straderegional tradeagreements,
therepresentative ofArmenia stated thattheTreaty ofEconomic Union wasaframework agreement
signed bynineHeads ofStateoftheCommonwealth ofIndependent States (CIS) in1993(Azerbaijan,
Armenia, Belarus, Kazakstan, Kyrgyz Republic, Moldova, Russia, Tadjikistan, andUzbekistan). The
treaty committed signatories totheeventual establishment ofacustoms union andcommon market
among CIScountries. Other economic andfinancial components oftheCIStreaty related toapayments
union, cooperation oninvestment, industrial cooperation, andanagreement oncustoms procedures.
Thetreaty setoutquitespecific commitments inmany ofthese areas (aswellasoncultural, scientific,
anddefence matters). Because thetreaty wasessentially anevolving framework document, itdid
not"operationalize" these commitments. Instead, thespecifics ofpreferential trading relationships
were defined inbilateral freetrade agreements andinclearing agreements.
162.160 Alsoinresponse torequests forfurther information, therepresentative ofArmenia explained
thatArmenia wasalsoamember oftheBlack SeaEconomic Cooperation (BSEC) Organization, along
withtenother countries (Albania, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia,WT/ACC/SPEC/ARM/1/Rev.1
Page83
Turkey andUkraine). Thisagreement covered anumber offields, including economic cooperation
andtrade, investment, scientific andtechnical cooperation, theestablishment ofaBSEC Bank, and
cooperationontransportandcommunications.Theagreementdidnotmakeanyprovisionforpreferential
trade, although itenvisaged thepossibility offreetrade zones inthefuture. More generally, the
organization seeks tocement relations among neighbouring countries through cooperation insuchareas
astransport, international payments andindustrial development.
163.161 Some members asked whether Armenia hadconcluded aneconomic cooperation agreement
withtheEuropeanUnion.TherepresentativeofArmeniaconfirmedthatthePartnershipandCooperation
Agreement between theEuropean Union andArmenia hadbeensigned on22April, 1996, andthe
Interim Agreement onTrade andTrade Related Issues between theEuropean Union andArmenia had
beensigned on20December, 1996. TheInterim Agreement would enterintoforce bytheendof1997,
uponexchange ofratification instruments. ThethatAgreement didnotprovide foranytradepreferences.
- Bilateral freetrade agreements andtrade andeconomic cooperation agreements with
CIScountries
164.162 Inresponse toquestions ofsome members about Armenia 'sbilateral agreements withCIS
countries, therepresentative ofArmenia stated noted thatbilateral freetrade agreements (FTAs) had
beensigned withGeorgia, Kyrgyz Republic, Moldova, Russian Federation, Tadjikistan,Turkmenistan
andUkraine. Theinitial bilateral freetrade agreement hadbeenauthenticated withKazakstan. When
thefreetrade agreements wereestablished andoperationalized, tariffs weresetupatzerolevel, and
non-tariff restrictions wereeliminated. Except fortheagreement withRussia, noneofthose FTAs had
been"operationalized". Inreply toquestions from some members concerning thereason thatthese
agreements were not“operationalized ”,therepresentative ofArmenia stated thatbecause littleor
notradeiscurrently taking placebetween Armenia andthesecountries, thereweretherefore nopractical
consequences arising from notoperationalizing theagreements. However, under theFTAwiththe
Russia Federation, eachpartycould exempt fromdutyfreetreatment anyexport items subject toquotas,
licences andexport taxes. Since Armenia didnotmaintain anyexport restrictions (other thanthose
generally applicable forpublic security, health andsafety reasons), there wasnothing onArmenia ’s
exception listunder thefreetradeagreement. Russia maintained certain export restrictions which could
becovered bytheexception provisions oftheFTA, butinpractice, these often didnotapply because
ofthetrade andeconomic cooperation agreements thatArmenia alsosigned sannually withRussia
(seebelow). Noexceptions toduty-free treatment forimports werearecontemplated intheRussian-WT/ACC/SPEC/ARM/1/Rev.1
Page84
Armenian freetrade agreement. Within theperiod aftersigning ofabilateral FreeTrade Agreement
withArmenia (1992-1997), theRussia Federation hadsubstantially liberalized itsforeign trade(removed
quotas, export taxes etc.). Itslegislation ontariff andnon-tariff regulation ofexports didnotprovide
foralistofspecific products. Thisensured theconformity oftheFTAbetween Armenia andtheRussian
Federation withtheWTO rules onfreetrade. Thebilateral protocol, signed on28August 1997,
confirmed thefactthatsubstantial deviations fromthefreetrade regime between Armenia andRussia
were eliminated.
165.163 Therepresentative ofArmenia further responded thattheFTAs wereanoutgrowth ofthe
tradeandeconomic cooperation agreements thatArmenia signed withCIScountries immediately after
independence, andwhich inmany cases arestilloperational. Most ofthese early agreements were
negotiated annually, theyenvisaged freetradeandtheyincluded listsofproducts thattheparties agreed
totradewithoneanother. Thepurpose oftheseagreements wastotrytoensure thatpre-existing trade
linkswerenotruptured altogether inthedisarray thatfollowed thebreakup oftheSoviet Union. The
specificity ofproduct-wise commitments varied considerably, including astotheidentification ofprices
andquantities tobeexchanged. Particularly after1992, product liststended tobecome indicative,
withnoprior agreement onprices, andthecommitments were onlypartially fulfilled. In1993, for
example, product commitments under these agreements weremettotheextent of20-50 percent,and
figures for1994 areexpected tobeevenlower.
- Bilateral clearing arrangements
166.164 Inresponse torequests forinformation inrelation toArmenia 'sbarter trade agreements
withother countries, therepresentative ofArmenia stated thatbarter wastheessence oftheremaining
clearing arrangements maintained byArmenia. Barter wasborne ofnecessity andwasnotapreferred
policy. Barter wasdeemed essential intheimmediate post-independence period, inorder topreserve
theonlytrade links thatArmenia hadatthattime, andwasafeature ofthetrade andeconomic
cooperation agreements described above. Moreover, barter offers amodicum ofenergy security, which
inthatthecurrent environment remained ofparamount importance totheGovernment. Inaddition
Also, transport difficulties andapoorly functioning payments system hadoften made governmental
support asinequanonofdoing business withFSUcountries. Asthesekinds ofconstraints wererelaxed,
barter wasisexpected todisappear. Indeed, tTheGovernment wasiscommitted toeliminating barter
arrangements assoonasitispracticable todoso.TheGovernment recognizes andrecognized that
itsroleastrader orasintermediary intradeinhibited inhibits theestablishment ofindependent networksWT/ACC/SPEC/ARM/1/Rev.1
Page85
andcontacts withforeign buyers byenterprises which wasanessential determinant forexporting success
theindependent development ofexport capacity byenterprises, andtheestablishment ofnetworks and
contacts withforeign buyers thataresoessential toexporting success. Headded thatin1995, the
onlybarter arrangements (called "clearing") thatwillremain arewere those withTurkmenistan for
gas,andwithRussia forcrude oilandmazout. Theagreement withTurkmenistan involved thepurchase
of2.2billion cubic meters ofgasatUS$80 perthousand cubic meters. Payment forthegaswasin
bothcash(US$30 perthousand cubic meters) andincounterpart products (US$50 perthousand cubic
meters) hasalready beensigned. Itinvolves thepurchase of2.2billion cubic meters ofgasat$80
perthousand cubic meters. Payment forthegaswillbeinbothcash($30perthousand cubic meters)
andincounterpart products ($50perthousand cubic meters). Counterpart products included suchitems
asmetals, chemical products, machinery, products oflightindustry, andproducts offoodindustries
(including brandy, wine, jams, andcigarette filters). Theclearing arrangements stated thequantities
andprices ofgoods guaranteed inexchange fortheenergy. Inthecaseofthe1995 Agreement with
Turkmenistan, however, anadditional listofproducts thatmight beexchanged hadbeenincluded,
inorder toprovide additional flexibility. Theagreement withRussia involved thepurchase byArmenia
of200,000 tonsofmazout and200,000 tonsofcrude oilunder thecontract. Theterms ofthisagreement
weremore rigidthanthose forTurkmenistan, andthecomposition, quantity andprices ofgoods fixed
inthecontract negotiation werenotsubject toanychange. Thislatter feature isakintowhataproduct
listrepresents under atrade andcooperation agreement. Thus, thefinalcomposition ofgoods for
exchange isestablished during thecurrency ofthecontract.
167.165 Inresponse torequests foramount oftrade flows arising from the1995 agreement with
Russia barter tradeagreements, therepresentative ofArmenia saidthatthe1993clearing arrangements
(which existed withGeorgia, theRussian Federation andTurkmenistan, andincluded metals, paper
wood products andindustrial rawmaterials aswellasenergy) involved 74percentoftotalexports
and56percentoftotalimports. Therespective figures in1994 were 46percentforexports and
29percentforimports. Domestic producers were areatliberty tochoose whether ornottosupply
goodsfortheclearingarrangements.Butinviewofthedifficultiesmanyenterprisesfacedinovercoming
transport andpayments problems relating toexports, theGovernment generally encountered slittle
difficulty insecuring thenecessary supplies from localindustries tofulfil theclearing contracts. As
farastransport andpayments problems werebeing settled, theimportance ofbarter trade gradually
decreased andbylate1995 deliveries under theclearing arrangements were abandoned inpractice.
Inresponse torequests forcurrent stateofbarter trade arrangements therepresentative ofArmenia
stated thatin1996theGovernment announced itsintention tocease thebarter trade, andnoneofformerWT/ACC/SPEC/ARM/1/Rev.1
Page86
barter arrangements wasrecommenced. TheGovernment ofArmenia doesnotenvisage conducting
barter orclearing settlements inthefuture.
- Bilateral trade andcooperation agreements
168.166 Therepresentative ofArmenia alsostated thattrade andcooperation agreements hadalso
beensigned withmany non-CIS countries, including Argentina, Austria, Bulgaria, China, Estonia,
Greece, Hungary, India, Iran, Latvia, Lithuania, Poland, Romania, Syria, theUnited States and
Vietnam. Thepossibility ofsuch agreements withanumber ofother countries isunder active
consideration. These agreements seektostrengthen economic links, butdonotcontain anyprovisions
forpreferential trade.
- Other non-trade bilateral agreements
169.167 TherepresentativeofArmenianotedthatArmeniahadalsosignedaseriesofotheragreements
oninvestment andoncustoms relations. Theinvestment agreements sought toencourage investment
between theparties, primarily byguaranteeing national treatment, non-expropriation, andunrestricted
transfers ofinvestment funds andreturns fromtheinvestments. Investment agreements hadbeensigned
withArgentina, China, Greece, Kyrgyzstan, Ukraine, theUnited Kingdom, theUnited States and
Vietnam. Agreements oncustoms relations areintended toensure cooperation andsmooth working
relations between thecustoms services ofthesignatories. Such agreements havebeensigned with
Georgia, Iran, Tadjikistan, Turkmenistan andUkraine.
170.168 Inresponse tofurther requests forclarification ofthecompatibility ofArmenia 'sfreetrade
agreements withtheCISstates withArticle XXIV oftheGATT 1994, therepresentative ofArmenia
stated thatwithin theframework ofthe1994 Free-Trade Agreement among thecountries ofthe
Commonwealth ofIndependent States (CIS), Armenia ’splurilateral andbilateral free-trade agreements
eliminated duties andotherrestrictive regulations onsubstantially alltradebetween theparties. Armenia
considered thatthesearrangements wereconsistent withArticle XXIV ofGATT 1994. Itmaybenoted
thatatpresent Armenia doesnotconduct trade withalloftheCIScountries, butinrespect ofthose
countries withwhich Armenia doestrade, Armenia imposes notaxes orbarriers onitsimports and
exports. These agreements donotcover trade inservices.WT/ACC/SPEC/ARM/1/Rev.1
Page87
171.170 Therepresentative ofArmenia confirmed thatArmenia would observe theprovisions of
theWTO including Article XXIV oftheGATT 1994andArticle VoftheGATS initstradeagreements,
andthatitwould ensure thattheprovisions ofthese WTO Agreement fornotification, consultation,
andother requirements concerning preferential trading systems, freetrade areas, andcustoms unions
ofwhich Armenia wasamember were metfrom thedateofaccession [insofarasthese provisions
hadnotalready beenmetbyoneoftheother Parties tosuchanagreement.]
Therepresentative ofArmenia alsoinformed theWorking Party thattheGovernment ofArmenia
would alsobring allpreferential trading agreements intoconformity withrelevant provisions ofthe
WTO Agreement fromthedateofitsaccession totheWTO. [TheWorking Party tooknoteofthese
commitments thiscommitment.]
- Plurilateral trade agreements
172.169 Therepresentative ofArmenia informed theWorking Party thattheGovernment ofArmenia
haddecided toaccede totheAgreements onGovernment Procurement andTrade inCivil Aircraft.
TheGovernment ofArmenia would alsoaccede tothefuture Information Technology Agreement.
[TheWorking Party tooknoteofthese commitments.]
VIII. Transparency
Publication ofInformation
173.157 Some members oftheWorking Party requested thattheGovernment ofArmenia confirm
thatfrom thedateofaccession, alllaws, regulations, rulings, decrees orother measures related to
trade ingoods orservices willbepublished initsofficial publication forpublic review atleasttwo
weeks priortoimplementation, unless alonger period isspecified under therelevant WTO Agreement.
[Therepresentative ofArmenia confirmed that,fromthedateofaccession, alllaws, regulations, rulings,
decrees orother measures related totrade ingoods orservices would bepublished initsofficial
publication forpublic review atleasttwoweeks prior toimplementation, unless alonger period is
specified under therelevant WTO Agreement, thatinaccordance withArticle XoftheGATT 1994,
thepublished measures would beaccessible totraders prior toimplementation, andthatnolaw,rule,
etc.,related totradewould become effective priortosuchpublication.] [Therepresentative ofArmenia
stated thatatthelatest from thedateofaccession, alllawsandother normative actsrelated totrade
would bepublished promptly intheOfficial Journal. Hestated further thatnolaworregulation relatedWT/ACC/SPEC/ARM/1/Rev.1
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tointernational trade would become effective prior tosuchpublication.] [TheWorking Party took
noteofthese commitments.]
[Notifications ]
[174. Therepresentative ofArmenia saidthatatthelatest upon entry intoforce oftheProtocol
ofAccession, Armenia would submit allnotifications (other thanthose required tobemade onanad
hocbasis) required byanAgreement constituting partoftheWTO Agreement. Anyregulations
subsequently enacted byArmenia which gaveeffect tolawsenacted toimplement anyAgreement
constituting partoftheWTO Agreement would alsoconform totherequirements ofthatAgreement.
TheWorking Party tooknoteofthese commitments.]
Conclusions
175.171. TheWorking Party tooknoteoftheexplanations andstatements ofArmenia concerning
itsforeign trade regime, asreflected inthisreport. TheWorking Party tooknoteofthecommitments
given byArmenia inrelation tocertain specific matters, which arereproduced inparagraphs [17,23,
30,33,36,41,43,50,58,66,68,70,78,82,88,89,95,99,104,118,120,121,122,123,125,
129,130,133,171,172,173and174]ofthisReport. TheWorking Party tooknotethatthese
commitments hadbeenincorporated inparagraph 2oftheProtocol ofAccession ofArmenia tothe
WTO.
176.172. Having carried outtheexamination oftheforeign traderegime ofArmenia andinthelight
oftheexplanations, commitments andconcessions made bytherepresentatives ofArmenia, theWorking
Party reached theconclusion that,Armenia should beinvited toaccede totheAgreement Establishing
theWTO pursuant totheprovisions ofArticle XII. Forthispurpose theWorking Party hasprepared
thedraftDecision andProtocol ofAccession reproduced intheAppendix tothisreport, andtakes
noteofArmenia 'sSchedule ofSpecific Commitments onServices (document ...)anditsSchedules
ofConcessions andCommitments onAgriculture andGoods (document ...)thatareattached tothe
Protocol ofAccession. Itisproposed thatthese textsbeapproved bytheGeneral Council when it
adopts theReport. When theDecision isadopted, theProtocol ofAccession would beopen for
acceptance byArmenia, which would become aMember thirty daysafteritaccepts thesaidProtocol.
TheWorking Party agreed, therefore, thatithadcompleted itswork concerning thenegotiations for
theaccession ofArmenia totheAgreement Establishing theWTO.WT/ACC/SPEC/ARM/1/Rev.1
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APPENDIX
ACCESSION OFARMENIA
Draft Decision
TheGeneral Council,
Having regard totheresults ofthenegotiations directed towards theaccession ofArmenia
totheMarrakesh Agreement Establishing theWorld Trade Organization andhaving prepared aProtocol
fortheAccession ofArmenia.
Decide ,inaccordance withArticle XIIoftheMarrakesh Agreement Establishing theWorld
Trade Organization, thatArmenia mayaccede totheMarrakesh Agreement Establishing theWorld
Trade Organization ontheterms setoutinthesaidProtocol.WT/ACC/SPEC/ARM/1/Rev.1
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PROTOCOL FOR THE ACCESSION OFARMENIA TOTHE
MARRAKESH AGREEMENT ESTABLISHING THE WORLD TRADE ORGANIZATION
DRAFT
TheWorld Trade Organization (hereinafter referred toasthe"WTO"), pursuant tothe
approval oftheGeneral Council oftheWTO accorded under Article XIIoftheMarrakesh Agreement
Establishing theWorld Trade Organization (hereinafter referred toasthe"WTO Agreement"), and
theGovernment ofArmenia, (hereinafter referred toas"Armenia"),
Taking noteoftheReport oftheWorking Party ontheAccession ofArmenia totheWTO
Agreement indocument ...(hereinafter referred toasthe"Working Party Report"),
Having regard totheresults ofthenegotiations ontheAccession ofArmenia totheWTO,
Agree asfollows:
PartI-General
1. Upon entry intoforce ofthisProtocol, Armenia accedes totheWTO Agreement pursuant
toArticle XIIofthatAgreement andthereby becomes aMember oftheWTO.
2. TheWTO Agreement towhich Armenia accedes shallbetheWTO Agreement asrectified,
amended orotherwise modified bysuchlegalinstruments asmayhaveentered intoforce before the
dateofentry intoforceofthisProtocol. ThisProtocol, which shallcomprise thecommitments referred
toinparagraph 175oftheWorking Party Report (document WT/ACC/ARM/xx), shallbeanintegral
partoftheWTO Agreement.
3. ArmeniawillnotifytheSecretariatannuallyoftheimplementationofthephasedcommitments
withdefinitive dates referred toinparagraphs 175oftheWorking Party Report, andwillidentify any
delays inimplementation together withthereasons therefore.WT/ACC/SPEC/ARM/1/Rev.1
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4. Except asotherwise provided forinthepreceding paragraph orintheparagraphs referred
toinparagraph ...oftheWorking Party Report:
(a) Those obligations intheMultilateral Trade Agreements annexed totheWTO Agreement
thataretobeimplemented overaperiod oftimestarting withtheentry intoforce ofthat
Agreement shallbeimplemented byArmenia asifithadaccepted thatAgreement onthe
dateofitsentry intoforce.
(b) Those notifications thataretobemade under theMultilateral Trade Agreements annexed
totheWTO Agreement within aspecified period oftimestarting withthedateofentry
intoforce oftheWTO Agreement shallbemade byArmenia within thatperiod oftime
starting withthedateofentry intoforce ofthisProtocol.
4. Except asotherwise provided forintheparagraphs referred toinparagraph 175126of
theWorking Party Report, those obligations intheMultilateral Trade Agreements annexed totheWTO
Agreement thataretobeimplemented overaperiod oftimestarting withtheentry intoforce ofthat
Agreement shallbeimplemented byArmenia asifithadaccepted thatAgreement onthedateofits
entry intoforce.
5. Armenia maymaintain ameasure inconsistent withparagraph 1ofArticle IIoftheGATS
provided thatsuchameasure isrecorded inthelistofArticle IIExemptions annexed tothisProtocol
andmeets theconditions oftheAnnex totheGATS onArticle IIExemptions.
PartII-Schedules
6. TheSchedules annexed tothisProtocol shall become theSchedule ofConcessions and
Commitments annexed totheGeneral Agreement onTariffs andTrade 1994 (hereinafter referred to
asthe"GATT 1994") andtheSchedule ofSpecific Commitments annexed totheGeneral Agreement
onTrade inServices (hereinafter referred toas"GATS") relating toArmenia. Thestaging ofthe
concessions andcommitments listed intheSchedules shallbeimplemented asspecified intherelevant
parts oftherespective Schedules.WT/ACC/SPEC/ARM/1/Rev.1
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7. Forthepurpose ofthereference inparagraph 6(a)ofArticle IIoftheGATT 1994 tothe
dateofthatAgreement, theapplicable dateinrespect oftheSchedules ofConcessions andCommitments
annexed tothisProtocol shallbethedateofentry intoforce ofthisProtocol.
PartIII-Final Provisions
8. ThisProtocol shallbeopenforacceptance, bysignature orotherwise, byArmenia until...
9. ThisProtocol shallenter intoforce onthethirtieth dayfollowing thedayupon which it
shallhavebeenaccepted byArmenia.
10. ThisProtocolshallbedepositedwiththeDirector-GeneraloftheWTO.TheDirector-General
oftheWTO shallpromptly furnish acertified copyofthisProtocol andanotification ofacceptance
byArmenia thereto pursuant toparagraph 8toeachMember oftheWTO andtoArmenia.
11. ThisProtocol shallberegistered inaccordance withtheprovisions ofArticle 102ofthe
Charter oftheUnited Nations.
Done atGeneva this....dayof....onethousand ninehundred andninety ...,inasingle
copyintheEnglish, French andSpanish languages, eachtextbeing authentic.WT/ACC/SPEC/ARM/1/Rev.1
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ANNEX I
SCHEDULE ...-ARMENIA
PartI-Goods
Circulated indocument ....
PartII-Services
Circulated indocument ....