SECTION 1.
GENERAL PROVISIONS

Article 1. Customs Legislation of the Republic of Armenia

1. The Customs legislation of the Republic of Armenia shall regulate relations associated with the Customs affairs of the Republic of Armenia.
2. The Customs legislation of the Republic of Armenia consists of the Customs Code and other legal acts of the Republic of Armenia.

Article 2. Basic Terms

Within the meaning of the present Code:

a. The term "goods" means all kind of articles and items, other properties, including currency and currency values, electric-, thermo-, and other kinds of power, means of transportation except for the means of transportation specified in paragraph (b) of the present Article, transported through the Customs border of the Republic of Armenia;
b. The term "means of transportation" means all kinds of means of transportation including containers and other supplementary equipment that are used for international transportation of passengers and goods transported through the Customs border of the Republic of Armenia;
c. The term "transportation across the Customs border of the Republic of Armenia" means the import of goods and means of transportation into the Customs territory of the Republic of Armenia and the export out of the above territory, including international mail delivery and shipment through the pipe-line and electrical transmission;
d. The term "import" means the import of goods and means of transportation into the Customs territory of the Republic of Armenia;
e. The term "export" means the export of goods and means of transportation out of the Customs territory of the Republic of Armenia;
f. The term " at the time of import or export" means the time when goods and means of transportation cross the Customs border of the republic of Armenia;
g. The term "persons" means the persons of the Republic of Armenia and foreign persons;
h. The natural persons of the Republic of Armenia, the organizations registered in the Republic of Armenia in due course of law, the subdivisions of international organizations and foreign legal persons, private entrepreneurs, bodies of state administration and institutions of local government shall be considered as persons of the Republic of Armenia;
i. The term "transporter of goods" means the person that is the owner, buyer or possessor of goods, or the person who possesses other sufficient rights, in compliance with the procedure established by legislature of the Republic of Armenia, to dispose the goods on his behalf, according to the procedure stipulated in the present Code;
j. The term "declarant" means the person transporting goods or the broker (mediator) that presents and declares goods and means of transportation in the Customs bodies on his behalf;
ja. The term "carrier" means the person actually transporting goods or the person liable for the use of means of transportation;
jb. The term "customs regime" means the set of provisions determining the transportation status of goods and means of transportation shipped across the Customs border for customs purposes;
jd. The term "release" means complete delivery to the persons mentioned in paragraphs (h) and (i) of the present Article, of the goods or means of transportation by the Customs Authorities after the fulfillment of customs formalities;
je. The term "customs formalities" means the implementation of relevant measures established for release of goods and means of transportation in accordance with a specific customs regime under the provisions of the present Code and other legal acts;
jf. The term "customs control" means a system of measures to be implemented by the Customs Authorities with a view to retain provisions consolidated by laws of the Republic of Armenia, other legal acts and international treaties;
jg. The term "non-tariff means of regulation" implies those means established by law and other legal acts that limit the import of goods and means of transportation into and export thereof out of the Republic of Armenia.
jh. The term "customs payments" means the customs duty, taxes, as well as fees and other compulsory payments levied by the Customs Authorities in due course of law for transportation of goods through the Customs border of the Republic of Armenia;
ji. The term "force-majeure" means the force or phenomenon in force preventing the person, against the will of the latter, from fulfilling liabilities taken in accordance with the present Code.

Article 3. Customs Affairs of the Republic of Armenia

The customs affairs of the Republic of Armenia shall involve the order and conditions of transporting goods and means of transportation through the Customs border of the Republic of Armenia, collection of customs payments, customs registrations, customs control and other means of implementation of the Customs policy.

Article 4. Customs Policy of the Republic of Armenia

1. The Republic of Armenia shall pursue a single customs policy that is an integral part of the overall State economic policy.
2. The main objectives of the Customs policy of the Republic of Armenia shall be the effective application of key instruments regulating the customs control of goods circulation through the Customs border and in the Customs territory of the Republic of Armenia and regulatory measures, participation in assuring the state independence and security of the Republic of Armenia, protection of domestic market, aimed at the development of national economy, as well as implementation of other economic and political goals.

Article 5. Customs Territory and Customs Border of the Republic of Armenia

1. The customs territory of the Republic of Armenia shall include land, water and air space of the Republic of Armenia.
2. There may be unbonded customs warehouses in the territory of the Republic of Armenia that are not included in the customs territory of the republic of Armenia unless otherwise stipulated by the present Code and other legal acts of the Customs legislation of the Republic of Armenia.
3. The border of the customs territory, as well as the RA border of unbonded customs warehouses shall coincide with the Customs border of the Republic of Armenia.

CHAPTER 2.
ORGANIZATION OF CUSTOMS AFFAIRS

Article 6. Implementation of Customs Affairs

The customs affairs of the Republic of Armenia, as well as its organization and control shall be implemented by the RA Government Authorized Body.

Article 7. Customs Authorities

1. The RA customs affairs shall be implemented by the Customs Authorities that are law enforcement bodies.
2. The RA Customs Authorities shall form a single state system that includes:

a. The Ministry of State Revenue of the Republic of Armenia;
b. The RA Ministry of State Revenue territorial customs houses;
c. The customs points of the RA Ministry of State Revenue.

3. The establishment, reorganization, and liquidation of the RA Ministry of State Revenue territorial customs houses an customs points shall be carried out by the Government of the Republic of Armenia.
4. The RA Ministry of State Revenue territorial customs houses and customs points shall carry out their activities in the territories accorded by the RA Government and compliance with the procedure established by the Ministry of State Revenue of the Republic of Armenia.

Article 8. Customs Laboratories and Educational Institutions of the RA Ministry of State Revenue

1. Customs laboratories for check testing and investigation of goods for customs purposes may be established by the RA Ministry of State Revenue.
2. Specialized educational institutions for scientific research, training and retraining purposes of specialists may be established by the RA Ministry of State Revenue.

Article 9. Main Objectives of the Customs Authorities

1. The main objectives of the Customs Authorities shall be:

a. To ensure economic sovereignty and security of the Republic of Armenia, to provide the protection of domestic market, as well as economic interests within its jurisdiction;
b. To ensure implementation of provisions of the customs legislation, as well as control over the implementation of the customs legislation demands, prevent, disclose the breach of the customs legislation, fulfillment of works aimed at the levy of the debts to the State Budget of the Republic of Armenia that have come forth in the result of misdoing the liabilities stipulated in the customs legislation.
c. To implement customs regulation measures in respect of trade economic relations, to ensure the application of customs tariff mechanism when transporting goods and means of transportation across the Customs border of the Republic of Armenia, collection of customs payments and relevant transfer to the State Budget;
d. To ensure implementation and improvement of the customs control and customs formalities, to provide favorable terms promoting the circulation of goods and passengers across the Customs border of the Republic of Armenia;
e. To fight off smuggling and violation of the customs regulations with respect to the transportation of goods across the customs border of the Republic of Armenia;
f. To promote the foreign economic relations of the Republic of Armenia;
g. To promote the measures aimed at providing the quality assurance of the imported goods with a view to protect consumer's interests;
h. To meet the liabilities and exercise the rights of the Republic of Armenia stipulated by the International treaties with respect to customs related issues, promote cooperation with the Customs Authorities and other authorized bodies of foreign states, as well as the international organizations dealing with customs related issues;
i. To keep Customs Statistics of the Republic of Armenia;
j. To implement analytical, research and advisory activities related to customs affairs.

Article 10. Administrative Normative Acts of the RA Ministry of State Revenue

The RA Ministry of Sate Revenue may adopt administrative normative acts in cases stipulated in the present Code and other legal acts.

Article 11. Identification Sign of the Customs Authorities

The Customs Authorities, their means of transportation shall have an identification sign, that is defined by the Government of the Republic of Armenia.

Article 12. Customs Authorities Officials

1. Only the citizens of the Republic of Armenia shall be officials of the Customs Authorities,
2. The Customs Authorities officials shall be given special and class ranks specified in the present Code.

Article 13 Liabilities of the Customs Authorities Officials

The Customs Authorities officials shall incur liability for illegal actions or inaction in accordance with the procedure established by the present Code and other legal acts.

Article 14. Cooperation of the Customs Authorities with Other State Bodies, Institutions of Local Government, Organizations and Natural Persons

1. The Customs Authorities shall cooperate with other State administration bodies, institutions of local government, organizations and natural persons in order to implement customs activities.
2. The State administrative bodies, institutions of local government and their officials shall support the Customs Authorities in fulfillment of objectives set before the latter.
3. The Customs Authorities may, within the framework of the RA legislation permit other State administrative bodies and organizations to implement under their control certain activities within the jurisdiction of the latter.

Article 15. Provision of the Customs Authorities with Territories, Offices, Warehouses, Equipment and Communication Means

Those enterprises, institutions and natural persons that are interested in having the customs formalities fulfilled in their premises shall provide free of charge the Customs Authorities with the premises, offices, warehouses, equipment and communication means required for the fulfillment of the customs formalities.

Article 16. Information Provided for the Customs Authorities for Customs Purposes

1. In accordance with the present Code and other legal acts the information provided for the Customs Authorities shall be exclusively used by the latter for the implementation of the customs affairs.
2. State, bank, trade or official secrets shall not be published, used for personal purposes, given to a third person including the State Authorities, except for the cases stipulated by the legislation.

Article 17. Appeal Against the Decisions, Actions or Inaction of the Customs Authorities and Their Officials

Any decision, actions or inaction of the Customs Authorities and their officials may be appealed against in accordance with the procedure established in due course of law.

SECTION 2.
TRANSPORTATION OF GOODS AND MEANS OF TRANSPORTATION ACROSS THE CUSTOMS BORDER
CUSTOMS REGIMES

CHAPTER 3.
TRANSPORTATION OF GOODS AND MEANS OF TRANSPORTATION
ACROSS THE CUSTOMS BORDER

Article 18. The Right to Import and Export Goods and Means of Transportation

1. Any person shall be equally authorised to import goods and means of transportation into the territory of the Republic of Armenia and export them out of the Republic of Armenia according to the order defined in the present code.

2. The rights of persons who import and export goods and means of transportation into the territory of the Republic of Armenia and export them out of the Republic of Armenia shall not be restricted, except cases stipulated by the present Code and other legal acts.

Article 19. Prohibition of Import and Export of Goods and Means of Transportation

1. Import of goods and means of transportation into the customs territory of the Republic of Armenia and export thereof out of the customs territory of the Republic of Armenia may be prohibited if these goods and means of transportation endanger or may endanger the state and national security, public order, the moral values of the population, human life and health, the protection of animals and plants and the environment, objects of art and historical monuments, personal property (including intellectual property), rights and interests.

2. The goods and means of transportation mentioned in paragraph 1 of the present article shall be subject to immediate transportation into or out of the RA territory if they are not subject of confiscation in due course of law. The transportation of goods and means of transportation mentioned in paragraph 1 of the present article shall be implemented by the transporter and at his expense.

If it is impossible to transport goods and means of transportation into or out of the RA territory, they shall be subject to:
a) Submission to temporary warehouses of the RA Customs Authorities, where they may be stored for up to 10 days until the release of the latter under respective customs regime and after the expiration of the date mentioned the goods and means of transportation shall be subject to confiscation;
b) Declaration under "destruction" customs regime in agreement with the transporter.

Article 20. Restrictions on Import and Export of Goods and Means of Transportation

Restrictions on import of goods and means of transportation into the customs territory of the Republic of Armenia and export thereof out of the customs territory of the Republic of Armenia shall be applied on the basis of considerations of the RA economic policies, performance of the international obligations of the Republic of Armenia, economic sovereignty, protection of consumer rights, as a response to the measures applied by the foreign countries or their unions to segregate or restrict the rights of the RA persons. Non tariff regulation measures can be applied according to the RA laws and international agreements.

Article 21. Transportation of Goods through the RA Customs Border

1. Goods and means of transportation shall be transported through the RA customs border according to the regimes defined in the present Code.

2. Goods and means of transportation may be transported through the RA customs border around the clock every day of the week in the customs points specified by the RA ministry of state revenue.

CHAPTER 4.

CUSTOMS REGIMES

Article 22. The Customs Regimes of Goods Transported through the Customs Border of the Republic of Armenia

1. The following regimes shall be established in order to implement the Customs affairs:

a. Import for free circulation;

b. Re-import;

c. Transit shipment;

d. Import to Customs warehouse;

e. Import to duty free shop;

f. Temporary import for processing;

g. Temporary import;

h. Temporary export;

i. Free customs zone;

j. Import to free customs warehouse;

ja. Temporary export for processing;

jb. Export for free circulation;

jc. Re-export;

jd. Destruction;

je. Renunciation of the ownership right to the State benefit.

Article 23. Regulation of the Customs Regimes

The customs regime issues not regulated by the present Code shall be regulated by the order defined by the RA Government.

Article 24. Customs Regime Option and Change

1. Any person shall be authorized to select or change the customs regime regardless the nature and quantity of goods unless otherwise stipulated by the present Code or other legal acts.

2. The order of change of the customs regime shall be carried out in accordance with the procedure established by the RA ministry of state revenue.

Article 25. The Customs Regime of "Import of Goods for Free Circulation"

1. The regime of import for free circulation shall deem permanent disposal of goods in the customs territory of the Republic of Armenia without the liability for further export out of the given territory.

2. The regime of import for free circulation implies:

a. Collection of customs payments;
b. Implementation of non-tariff regulatory measures.

Article 26. The Customs Regime of "Re-import"

1. The customs regime of goods for re-import shall concern the re-import of goods into the customs territory of the Republic of Armenia, which have been produced in the territory of the Republic of Armenia and exported out of the territory of the Republic of Armenia under the regimes of "temporary export", "temporary export for processing ","temporary export for free circulation".
2. This customs regime implies:

a. No customs payments except the cases stipulated in this code, in the case of import within 1 year of the goods that have been exported from the RA customs territory under the regime of "export for free circulation" and return of the customs duties previously levied for the export;

b. No implementation of the non tariff regulatory measures except the measures aimed to defend the interests of consumers.

c. Absence of changes other than natural deterioration or changes caused by the transportation or storage under abnormal conditions, compared to their conditions at the time of export, except the changes as a result of reprocessing of goods exported under the "temporary export for reprocessing" regime.

Article 27. The Customs Regime of "Transit shipment"

1. The customs regime of transit shipment shall be the transportation of goods under customs control between two customs points without modification of the bill of lading,
2. Transit shipment regime implies:

a. No customs payments except the user fees and the cases stipulated in this code;
b. No implementation of the non tariff regulatory measures except the cases stipulated by this code, other laws and the RA international agreements;

c. That thee goods shall be transported from one customs point of destination to another within a ten day period maximum and submission to customs bodies for temporary custody within the specified period in case of force major;

d. Exception of changes other than natural deterioration or changes caused by the transportation or storage under abnormal conditions;

e. Obligatory customs accompanying in cases stipulated by the RA government if otherwise is not stipulated in this code.

3. The RA government establishes:

a. The list of goods that are prohibited to be transported through the RA territory;
b. The list of goods transportation of which through the RA territory shall be subject of licensing and the order of implementation;
c. The order of transit transportation of goods and means of transportation through the RA territory.

Article 28. Liabilities of Carrier

1. The carrier shall incur liability for transit shipment of goods and means of transportation under the "transit shipment" regime according to this code and other legal acts.

2. In case of alienation, lost or not reaching to the customs point, or leaving the RA customs territory of goods and means of transportation without permission of the Customs Authorities, the carrier shall be obliged to pay the customs payments stipulated by "imported for free circulation" regime within 10 days following the date stipulated for the transit shipment and pay the penalties stipulated by the legislation in the event of failure to pay customs payments within the specified period.

3. Notwithstanding the provisions of paragraph 2 of the present Article, the carrier shall be exempted from customs payments, in case the goods are destroyed or lost irrevocably in consequence of force-majeure circumstances, or undergone natural deterioration, or are damaged due to transportation under abnormal conditions, or actions or idleness of the RA State authorities and officials and that fact is stated with the relevant documents.

Article 29. The Customs Regime of "Submission to Customs Warehouse"

1. The "Submission to Customs Warehouse" regime shall be deemed storage of imported goods under the customs control in the customs warehouse stipulated in this code.
2. The referred customs regime implies:

a. The exemption from customs payments during the storage, except the customs user fees;
b. No implementation of non-tariff regulatory measures except the cases stipulated in this code.

Article 30. The Terms of Distribution of Goods under the Customs Regime of "Import of Goods into Customs Warehouse"

1. The "Import to customs warehouse regime" can be applied for goods that are not prohibited for import into the RA territory.
2. The goods that may cause damage to other goods stored in the customs warehouse shall be kept in specially adapted warehouses.

Article 31. Duration of Keeping Goods under the Customs Regime of "Import of Goods into the Customs Warehouse "

1. The goods under the customs regime of 'import of goods into the customs warehouse' may be stored within a period not exceeding one year.

2. The period mentioned in the 1st paragraph of this article could be limited by the customs bodies, the expiration date and peculiarities taking into account.

3. After the expiration of the period stipulated in paragraph 1 of the present Article, other customs regimes shall be applied or transported to the customs warehouses of temporary storage within 10 days period.

Article 32. Actions to be Implemented with Respect to the Goods under the Customs Regime of "Import of Goods into Customs Warehouse"

The following actions may be implemented with respect to the goods under the customs warehouse regime:

a. Actions necessary for storage of goods;

b. preliminary preparation of goods for further delivery and sale by permission of the Customs Authorities, division into groups, sorting, packaging, re-packaging, labeling, marking, loading, unloading and other relevant activities that do not cause changes in characteristics and destination.

Article 33. The Customs Regime of "Duty Free Shop"

1. The duty free shop regime shall be importation of goods into the places allotted for duty free trade. The release of goods under "export for free circulation" or "re-export" regimes according to the procedure stipulated by this code shall precede to importation of goods into the places allotted for duty free trade through the RA customs territory.

2. This customs regime implies:
a. No customs payments, except for customs user fees;
b. No implementation of the non tariff regulatory measures except the measures aimed to defend the interests of consumers.

3. This customs regime can not be implemented for goods prohibited for importation in or exportation from the RA territory.

Article 34. The Customs Regime of "Temporary Import for Processing"

1. The "temporary importation for processing" regime shall imply importation of goods into the RA customs territory for processing with the intention to be exported in future.
2. This customs regime implies:
a. No customs payments, except for customs user fees;
b. Importation of goods for processing based on permission given by the body authorized by the RA government;
c. Processing of goods within one year period after the date of importation by order defined by the body mentioned in the paragraph b of this article;
d. Registering the goods under the "re-export" regime within ten days following the date mentioned in the paragraph (c).

3. The transporter shall be obligated to pay the customs payments stipulated by the "export for free circulation" regime and accounted based on difference of customs values accounted during the registration of goods under the "temporary import for reprocessing" and "re-export" regimes.

Article 35. Activities Associated with Processing of Goods, Duration of Processing

1. The processing of goods imported under the "temporary import for reprocessing" shall be carried out on the basis of a relevant license given by the body authorized by the RA government.
2. The RA government shall define the procedure of licensing mentioned in the 1st paragraph of this article.

3. The activities associated with goods processing shall include:

a. Manufacturing of final products including mounting, assembling and usage in other products;

b. Repair of goods including renovation and putting into order;

c. Use of the goods that facilitate production and are partially consumed in the process.

4. The terms of processing and the minimum quantity of product expected to be gained after the processing of goods, the restriction of the processing activities, as well as the use of the internal goods in processing shall be stipulated by the body authorized by the RA government.

Article 36. The Liabilities of Importers of Goods into Customs Territory under the Customs Regime of "Temporary Import of Goods for Reprocessing"

In case of not exportation or partially exportation of goods imported under the "temporary import for reprocessing" regime, and if the transporter has not submitted the goods imported for processing and not exported in the defined period to the customs bodies for temporary maintenance, the transporter shall be obligated:
a. To pay the customs payments stipulated by the "import for free circulation" regime for the not exported goods within 10 days after the date defined for exportation of the goods;
b. To pay the penalty accounted by the order defined by law, in case of not payment or delay of payments mentioned in the paragraph a) for the exportation of goods;
c. To pay the penalty for customs payments defined in law and accounted since the day of importation in case of re-declaring the goods under the "import for free circulation" regime.

Article 37. Destruction, Loss and Failure to Export Goods Released under the Customs Regime of "Temporary import for processing" in Consequence of Activities or Inaction of the RA State Authorities or their Officials

Notwithstanding the provisions of the Article 36, the carrier shall not be liable in case the goods are not exported or partially exported in the defined period if violation of the date by carrier is result of storage or transportation under abnormal conditions or force majeure circumstances, or in case the goods are destroyed or lost irrevocably as a result of actions or idleness of the RA State authorities and officials and that fact is stated with the relevant documents.

Article 38. The "Temporary Import" regime

1. The "temporary import" regime shall imply importation of goods into the RA customs territory with the intention to be exported back.
2. This customs regime implies;
a) no customs payments, except for customs user fees or cases stipulated in this code and other laws:
b) return of goods within the required by applicant period, which shall not exceed 1 year period if the former required period was less then 1 year. The RA ministry of state revenue can extend the mentioned period up to 1 year after the date of importation.
c) no implementation of the non tariff regulatory measures except the measures aimed to defend the interests of consumers.
d) Change of "temporary import" regime into "re-export" regime for released goods within ten days following the last date of period mentioned in the subparagraph b) of this paragraph, and submission to customs bodies for temporary custody within the specified period in case of force majeur;
e) Exception of changes other than natural deterioration or changes caused by the transportation or storage under abnormal conditions.

Article 39. Terms of Temporary import

The Government of the Republic of Armenia shall specify:

a. the cases when goods can be imported into the customs territory of the Republic of Armenia only under the corresponding condition of further export, provided that customs payments have been made;
b. the list of goods forbidden for temporary import into the customs territory of the Republic of Armenia

Article 40. Terms of Temporary Import regime implementation

1. Permission for importation under the "temporary import" regime shall be given according to the order defined by the RA ministry of state revenue.
2. The terms of importation under the "temporary import" regime shall be controlled by the customs bodies.

Article 41. Liability of persons transporting goods under the "Temporary import" regime

In case of not exportation or partially exportation of goods imported under the "temporary import" regime, and if the transporter has not submitted the not exported goods to the customs bodies for temporary maintenance in the defined period, the transporter shall be obligated:
a) to pay the customs payments stipulated by the "import for free circulation" regime for the not exported goods within 10 days after the date defined for exportation of the goods.
b) To pay the penalty accounted by the order defined by law, in case of not payment or delay of payments in the period mentioned in the paragraph a).

Article 42. The cases of not returning as a result of activities and inaction of the RA officials or destruction and loss of goods released under the "Temporary import" regime

Notwithstanding the provisions of the Article 41, the carrier shall not be liable in case the goods are not exported or partially exported in the defined period if violation of the date by carrier is result of storage or transportation under abnormal conditions or force majeure circumstances, or in case the goods are destroyed or lost irrevocably as a result of actions or idleness of the RA State authorities and officials and that fact is stated with the relevant documents.

Article 43. The "Temporary Export" regime

1. The "temporary export" regime shall imply exportation of goods from the RA customs territory with the intention to be imported.
2. This customs regime implies:
a) no customs payments, except for customs user fees or cases stipulated in this code and other laws;
b) return of goods within the required by applicant period, which shall not exceed 1 year period if the former required period was less then 1 year. The RA ministry of state revenue can extend the mentioned period up to 1 year after the date of exportation.
c) no implementation of the non tariff measures;
d) Change of "temporary export" regime into "re-import" regime for released goods within ten days following the last date of period mentioned in the subparagraph b) of this paragraph;
e) Exception of changes other than natural deterioration or changes caused by the transportation or storage under abnormal conditions.

Article 44. Terms of Temporary Export

The Government of the Republic of Armenia shall specify:

a. the cases when goods can be exported out of the customs territory of the Republic of Armenia only under the corresponding condition of further import, provided that customs payments have been made;
b. the list of goods forbidden for temporary export from the customs territory of the Republic of Armenia

Article 45. Terms of Temporary Export regime implementation

1. Permission for exportation under the "temporary export" regime shall be given according to the order defined by the RA ministry of state revenue.
2. The customs bodies shall control the terms of exportation under the "temporary export" regime.

Article 46. Liability of persons transporting goods under the "Temporary Export" regime

In case of not importation or partially importation of goods exported under the "temporary export" regime, and if the transporter has not submitted the not imported goods to the customs bodies for temporary maintenance in the defined period, the transporter shall be obligated:
c) to pay the customs payments stipulated by the "export for free circulation" regime for the not imported goods within 10 days after the date defined for importation of the goods.
d) To pay the penalty accounted by the order defined by law, in case of not payment or delay of payments in the period mentioned in the paragraph a).

Article 47. The cases of not returning as a result of activities and inaction of the RA officials or destruction and loss of goods released under the "Temporary export" regime

Notwithstanding the provisions of the Article 46, the carrier shall not be liable in case the goods are not imported or partially imported in the defined period if violation of the date by carrier is result of storage or transportation under abnormal conditions or force majeure circumstances, or in case the goods are destroyed or lost irrevocably as a result of actions or idleness of the RA State authorities and officials and that fact is stated with the relevant documents.

Article 48. The "Import into Free Customs Warehouse" Regime

1. The "Import into free customs warehouse" regime shall imply maintenance of goods imported into the RA in free customs warehouses stipulated in this code without customs control except the cases stipulated in this code.
2. This customs regime implies;
a) no customs payments, except for customs user fees or cases stipulated in this code and other laws:
b) no implementation of the non tariff regulatory measures
3. The goods released under the "Import into free customs warehouse" regime can be imported into the RA customs territory according to the order stipulated for the "import for free circulation" regime.
4. The goods released under the "Import into free customs warehouse" regime can be exported from the RA customs territory under the "export for free circulation" or "re-export" regimes without the customs payments and implementation of the non-tariff regulatory measures.
5. This customs regime can not be implemented for the goods which are prohibited to import into or export out from the RA customs territory.
6. The RA government can define barriers or restrictions for the storage of certain goods.

Article 49. Activities related to the Goods released under the "Import into Free Customs Warehouse" regime

1. Following actions can be implemented related to the goods released under the "Import into Free Customs Warehouse" regime:
a) actions necessary for the maintenance of goods;
b) preparation of goods for shipment and sale, separation of assemblages, assorting, packaging, repackaging, labeling, loading, unloading, marking and other activities which do not cause changes in characteristics and design;
c) whole sale

2. The customs bodies shall be authorized to forbid the activities of those persons, who do not act according to the requirements of this code and other legal act. The customs bodies shall be authorized to forbid their entrance into the free customs warehouse as well.

Article 50. Duration of maintenance of goods under the "import into the free customs warehouse" regime

1. The goods can be maintained under the "import into the free customs warehouse" regime up to 3 year period.
2. The customs bodies taking into account the expiration date and peculiarities of preservation can limit the period mentioned in the 1st paragraph of this article.

Article 51. The "temporary export for reprocessing" regime

1. The "temporary export for reprocessing" regime shall imply exportation of goods for reprocessing with the intention to be imported back into the RA customs territory.
2. This customs regime implies;
a. no customs payments, except for customs user fees:
b. exportation of goods for processing based on permission given by the body authorized by the RA government
c. processing of goods within 1 year period after the date of exportation by order defined by the body mentioned in the paragraph b of this article.
d. Registering the goods under the "re-import" regime within ten days following the date mentioned in the paragraph c) and registering the goods under the "export for free circulation" regime within the mentioned period in case of force majeure.

3. The transporter shall be obligated to pay the customs payments stipulated by the "import for free circulation" regime and accounted based on difference of customs values accounted during the registration of goods under the "temporary export for reprocessing" and "re-import" regimes.

Article 52. Activities Associated with Goods Processing; Duration of Processing

1. The processing of goods exported under the "temporary export for reprocessing" shall be carried out on the basis of a relevant license given by the body authorized by the RA government.
2. The RA government shall define the procedure of licensing mentioned in the 1st paragraph of this article.

3. The activities associated with goods processing shall include:

a. manufacturing of final products including mounting, assembling and usage in other products;

b. repair of goods including renovation and putting into order;

c. use of the goods that facilitate production and are partially consumed in the process;

4. The terms of processing and the minimum quantity of product expected to be gained after the processing of goods, the restriction of the processing activities, as well as the use of the internal goods in processing shall be stipulated by the body authorized by the RA government.

Article 53. The liabilities of exporters exporting the goods into customs territory under "temporary import for reprocessing" regime

In case of not importation or partially importation of goods exported under the "temporary export for reprocessing" regime, the transporter shall be obligated:
a) to pay the customs payments stipulated by the "export for free circulation" regime for the not imported goods within 10 days after the date defined for importation of the goods.
b) To pay the penalty accounted by the order defined by law, in case of not payment or delay of payments mentioned in the paragraph a) for the importation of goods.

Article 54. The cases of not importation as a result of activities and inaction of foreign state officials or destruction and loss of goods released under the "Temporary export for reprocessing" regime

Notwithstanding the provisions of the Article 48, the carrier shall not be liable in case the goods are not imported or partially imported in the defined period into the RA if violation of the date by carrier is result of storage or transportation under abnormal conditions or force majeure circumstances, or in case the goods are destroyed or lost irrevocably as a result of actions or idleness of the foreign state authorities and officials and that fact is stated with the relevant documents.

Article 55. The "Export for Free Circulation" regime

1. The regime of export for free circulation shall deem exportation of goods from the customs territory of the Republic of Armenia without the liability for further import into the given territory.

2. The regime of import for free circulation implies:

a. Levy of customs payments
b. Implementation of non-tariff regulatory measures
c. Exportation of goods released under the "export for free circulation" regime from the RA customs territory within ten days maximum following the date of customs formalities and submission to customs bodies for temporary custody within the specified period in case of force majeur;
d. Exception of changes other than natural deterioration or changes caused by the transportation or storage under abnormal conditions since the release under the "export for free circulation" of goods up to the export out of the RA.

Article 56. The "Re-export" regime

1. The customs regime of "re-export" is the backward exportation of goods out of the customs territory of the Republic of Armenia, which have been imported into the RA customs territory under the customs regime of "temporary import for processing", "temporary import", as well as goods having foreign country of origin and being imported under the customs regime of "import for free circulation", "import into the customs warehouse for ground storage", "import into the customs warehouse", and have not been released under any customs regime.

2. This customs regime implies:

a. No levy of customs payments except the customs user fees and cases stipulated in the present Code;
b. Return of the sums, except for the customs user fees, obtained from levy of the previously effected customs payments in case of export of goods out of the RA customs territory that have been imported under the customs regime of "export for free circulation" within 180 days;
c. no implementation of the non tariff regulatory measures, except the limitations derived from the international obligations of the RA.

d. absence of changes other than natural deterioration or changes caused by the transportation or storage under abnormal conditions, compared to their conditions at the time of import, except the changes as a result of reprocessing of goods imported under the "temporary import for reprocessing" regime.

e. Exportation out of the RA customs territory of goods released under the "re-export" regime within 10 days maximum and submission to customs bodies for temporary custody within the specified period in case of force majeur;

Article 57. Renouncement of the Ownership Right for the State's Benefit

1. The customs regime of renouncement of the ownership right for the State's benefit implies the rejection of goods by a person for the State's benefit;

2. The customs regime of rejection of goods for the State's benefit shall be implemented:

a. without collection of customs duties;

b. no implementation of the non tariff regulatory measures except the measures aimed to defend the interests of consumers.

3. The customs regime of "renouncement of the ownership right for the State's benefit" shall be implemented in case and in accordance with the procedure established by the RA Government.

Article 58. The Customs Regime of "Destruction"

1. The customs regime of destruction implies the destruction of goods under customs supervision through making them unmarketable.

2. The customs regime of destruction shall be implemented:

a. At the consent of the carrier of goods;
b. Based on the permission of the Custom Authorities in accordance with the procedure established by the Government of the Republic of Armenia;
c. without levy of customs payments, except for the customs user fees.

3. The destruction of goods shall be implemented at the expense of the carrier of goods.

4. The Government of the Republic of Armenia shall define the list of those goods, in respect of which cannot be implemented the customs regime of "destruction".

5. If the customs regime of "destruction" cannot be applied with respect of goods, the latter shall be taken out by the carrier and at the expense of the latter.

CHAPTER 5.

TRANSPORTATION OF CERTAIN GOODS AND MEANS OF TRANSPORTATION ACROSS THE CUSTOMS BORDER OF THE REPUBLIC OF ARMENIA

Article 59. Transport of Means of Transportation

1. Means of transportation shall be transported across the customs border of the Republic of Armenia in accordance with the customs regime to be applied with respect to the given means of transportation.

2. The means of transportation transported across the customs border of the Republic of Armenia shall stop at places stipulated by the Customs Authorities.

3. The duration of stoppage of means of transportation shall be determined by the Customs Authorities proceeding from the time duration necessary for customs formalities and customs control of goods transported with the referred means of transportation.

4. The transport of means of transportation from the place of stoppage shall proceed only after the permission of the Customs Authorities.

Article 60. Transport of the Currency, Securities, Foreign Currency, National and Historical Values of the Republic of Armenia across the Customs Border of the Republic of Armenia

The procedure for transport of the currency, securities, foreign currency, archeological and cultural values of the Republic of Armenia across the customs border of the Republic of Armenia shall be established by the present Code and other legal acts.

Article 61. Establishment of a Simplified Procedure for Transportation of Certain Goods by Natural Persons across the Customs Border of the Republic of Armenia

The Government of the Republic of Armenia may establish a simplified procedure for transportation of certain goods and the goods transported through the international mail delivery by natural persons across the customs border of the Republic of Armenia.

SECTION 3.

LICENSING AND CONTROL OF CERTAIN TYPES OF ACTIVITIES ASSOCIATED WITH CUSTOMS AFFAIRS

CHAPTER 6.
TYPES OF ACTIVITIES SUBJECT TO LICENSING

LICENSING AND CONTROL

Article 62. Types of Activities Associated with Customs Affairs and Subject to Licensing

1. The following types of activities associated with the customs affairs shall be subject to licensing:

a. Storage of goods in customs warehouses under customs control;
b. Realizing of goods in duty free shop under customs control;
c. Storage of goods in warehouses for ground storage;
d. Activities of customs agent;
e. Activities of customs carrier.

2. The procedure for licensing the activities stipulated in paragraph 1 of the present Article shall be established by the Government of the Republic of Armenia.
3. Licensing the activities stipulated in paragraph 1 of the present Article shall carry out the Ministry of State Revenue of the Republic of Armenia.

Article 63. Control Over the Persons Implementing Activities Associated with Customs Affairs and Subject to Licensing

The Ministry of State Revenue shall control the types of activities subject to licensing and stipulated in Article 62 of the present Code.

CHAPTER 7.
STORAGE OF GOODS IN CUSTOMS WAREHOUSES
UNDER CUSTOMS CONTROL

Article 64. Customs Warehouses and Their Types

1. Customs warehouse is a complex of one or more than one constructions and open areas, meant for persons granted with a license according to the procedure established by the present Code to store goods released under the customs regime of "import of goods into the customs warehouse".
2. Customs warehouses shall be of the following types:

a. warehouses for ground storage designed for the goods belonging to any person;
b. warehouse for indoor storage designed for the goods belonging to certain persons;
c. specialized warehouses designed for storage of certain types of goods belonging to any person.

3. Customs warehouses can be set up by the Customs Authorities and persons granted with a license according to the procedure established under the provisions of paragraph 2, Article 62 of the present Code.
4. Customs warehouses set up by the Customs Authorities shall be only for ground storage and are intended for temporary storage of goods handed over to the Customs Authorities in cases stipulated in the present Code.

Article 65. Storage of Goods in Customs Warehouses Under Customs Control

1. Storage of goods in customs warehouses shall be carried out in accordance with the procedure established by the present Code and other legal acts
2. The persons assuring the storage shall be obliged:

a. not to allow the removal of goods from the customs warehouse, except for the cases related to the performance of customs control or changes in customs regimes;
b. not to hinder the performance of customs control;
c. to secure terms and conditions for the Customs Authorities to assure customs control in compliance with the procedure established under provisions of the present Code;
d. to register goods and present them to the Customs Authorities in compliance with the procedure established by the Ministry of State Revenue of the Republic of Armenia.

Article 66. Liabilities for Effecting Customs Payments

The founder of a customs warehouse shall not incur liability to effect customs payments.

CHAPTER 8.
REALIZATION OF GOODS UNDER CUSTOMS CONTROL
IN DUTY FREE SHOPS

Article 67. Establishment of Duty Free Shop

1. Duty free shop is an area allocated in the territory under the customs control, where goods imported under the customs regime of "import into a duty free shop" according to the procedure established under the provisions of the present Code shall be realized under the customs control.
2. Duty free shops can be established by persons of the Republic of Armenia based on the license granted in compliance with the procedure stipulated in paragraph 2, Article 62 of the present Code.

Article 68. Realization of Goods in Duty Free Shops

In duty free shops trade activities shall be carried out under customs control in accordance with the procedure established by law or other legal acts.

CHAPTER 9.
STORAGE OF GOODS IN UNBONDED CUSTOMS WAREHOUSES

Article 69. Unbonded Customs Warehouses

1. Unbonded customs warehouse is a complex of one or more than one constructions and open areas, where persons granted with a license in accordance to the procedure established by the present Code shall under customs control store goods released under the customs regime of "import of goods into unbonded customs warehouse".
2. Unbonded customs warehouses can be established by persons of the Republic of Armenia based on the license granted in compliance with the procedure stipulated in paragraph 2, Article 62 of the present Code.

Article 70. Compliance with the Legislation in the Territory of Unbonded Customs Warehouse

1. In case sufficient information concerning the violation of the legislation in force is available, the Customs Authorities shall be entitled to establish control over goods in unbonded customs warehouses.
2. The customs formalities with respect to the goods imported into and exported out of unbonded customs warehouses, as well as those being stored in the latter shall be fulfilled in accordance with a simplified procedure established by the Ministry of State Revenue of the Republic of Armenia.

CHAPTER 10.
ACTIVITIES OF THE CUSTOMS AGENT

Article 71. Customs Agent

1. A customs agent is a person of the republic of Armenia who performs his activities related to customs formalities and customs control on the basis of a license granted in accordance with the procedure established under the provisions of paragraph 2, Article 62 of the present Code, as well as acts on the instructions of carriers of goods and on his behalf.
2. The legal relationship between the customs agent and the person he represents shall be regulated by laws of the Republic of Armenia.

Article 72. Rights of Customs Agent

The customs agent shall be entitled to perform any activities associated with the fulfillment of the customs formalities, as well as other activities with respect to the customs affairs upon authorization and at the expenses of the person he represents.

Article 73. Expert on Customs Formalities

Only a citizen of the Republic of Armenia having qualification of an expert on customs affairs in accordance with the procedure established by the Ministry of State Revenue shall fulfill customs formalities on behalf of the customs agent.

Article 74. Customs Agent and the Treatment by Customs Officers of Information Provided by a Customer

1. Information provided by a customer for customs purposes shall be used by customs agents and customs officers exclusively for customs purposes.
2. State, bank, trade and official secrets shall not be subject to disclosure or used by customs agents or officers in their interests or in the interests of a third party. The said information shall not be supplied to a third party including the State bodies, except for the cases stipulated by the legislation in force.

CHAPTER 11.
ACTIVITIES OF CUSTOMS CARRIER

Article 75. Customs Carrier

1. Any person of the Republic of Armenia being granted with a license in accordance with the procedure established under the provisions of paragraph 2, Article 62 of the present Code may perform customs carriages.
2. The customs carrier shall perform his activities in accordance with the present Code and other legal acts.
3. Carriage of goods released under the customs regime of "transit shipment" shall be carried out by persons performing customs carriage without compulsory customs accompanying. The latter shall be performed on the basis of the carrier's application.

Article 76. Customs Carrier and the Treatment by Customs Officers of Information Provided by a Customer

1. Information provided by a customer for customs purposes shall be used by customs carriers and customs officers exclusively for customs purposes.
2. State, bank, trade and official secrets shall not be subject to disclosure or used by customs carriers or officers in their interests or in the interests of a third party. The said information shall not be supplied to a third party including the State bodies, except for the cases stipulated by the legislation in force.

SECTION 4.

DETERMINATION OF CUSTOMS VALUE OF THE GOODS TRANSPORTED THROUGH THE CUSTOMS BORDER OF THE REPUBLIC OF ARMENIA

CHAPTER 12.
GENERAL PROVISIONS ON CUSTOMS VALUE

Article 77. The Aims of Determining the Customs Value

Customs value of the transported goods through the Customs border of the Republic of Armenia is determined with the aim of calculation of the ad-valorem customs payments, implementation of non-tariff regulatory measures determined in an ad-valorem way and conducting the customs statistics.

Article 78. Identical Goods

The goods shall be considered identical if they are the same in all respects, including physical characteristics, quality, production and expiration dates, reputation (trademark), and the country of origin. Minor differences in appearance of the goods, which shall not give the consumer serious grounds for giving preference to this or that product of two comparable products, shall not constitute sufficient grounds for not considering the goods as similar.

Article 79. Similar Goods

The goods shall be considered similar if they have the same country of origin, which, though not identical, have like characteristics and component materials, which enable them to perform the same functions and be commercially interchangeable. The quality, production and expiration dates, reputation (trademark) are among the factors to be considered in determining whether goods are similar.

Article 80. Additional Provisions to the Concepts of Identical and Similar

1. Regardless the Articles 77 and 78 of the present Code, as compared with goods transported through the Customs border of the Republic of Armenia the goods where engineering, development work, design work, art work, plans or sketches undertaken in the country of origin were used shall not be considered identical or similar.

2. In relation to the declared goods, identical or similar shall be considered the goods of other producers only when there are no identical or similar goods produced by a particular industry or industry sector for comparison.

Article 81. Related Persons

Persons are related to each other, if:

(a) one is the director of the other;
(b) one is the employer of the other;
(c) any other person who at the same time owns, holds or controls five per cent or more of the outstanding voting stock or shares of each such person;
(d) one in some way controls or limits the actions of the other;
(e) any other person in some way controls or limits their actions;
(f) they together in some way control or limit the actions of any other person;
(g) they are a property joint owners or founders of an organization (legally recognized partners in business);
(h) they are members of the same family.

Article 82. The Same or Nearly the Same Period of Time

The same or nearly the same period of time shall be considered the ninety-days period preceding the time observed.

Article 83. The Same or Nearly the Same Quantity

The same or nearly the same quantity shall be considered the quantity differing to twenty per cent of the quantity observed.

Article 84. Goods of the Same Kind
Goods of the same kind shall be considered those goods that fall within a group of goods produced by a particular industry sector under the same secret Code of foreign economic activity.

CHAPTER 13.
CUSTOMS VALUE OF GOODS TRANSPORTED THROUGH THE CUSTOMS BORDER AND ITS CONSTITUENTS

Article 85. Customs Value

Customs value of goods transported through the Customs border is the amount actually paid and subject to payment or that should be paid for the purchase of the goods and their transportation to the Customs border of the Republic of Armenia.

Article 86. Constituents of Customs Value

Customs value shall include:

1. the purchasing price of goods in the exporting country;
2. transportation, loading, unloading, transshipment, insurance and other similar costs made before reaching the Customs border of the Republic of Armenia;
3. the commission and mediation /broker/ expenditures made for the transportation of goods to the Customs border of the Republic of Armenia;
4. the value of the following items directly or indirectly provided by the purchaser to the supplier, without compensation or with partial compensation to the latter for the production and supply of goods transported through the Customs border:
(a) the value of materials, components and other similar items included in the imported goods;
(b) the value of tools and other similar items used in the production of imported goods;
(c) materials consumed in the production of imported goods;
(d) architectural, designing, sketching and other similar activities required for the production of imported goods, that have been implemented outside the importing country;
5. the payments made or subject to direct or indirect payment to the supplier by the purchaser against royalties and license fees required for the sale of imported goods;
6. the cost of jars, packages and packaging;
7. the proceeds of any subsequent resale, use or disposal of the goods imported by the purchaser that accrue to the supplier.

Article 87. Customs Value With Inclusion of Its Constituents

The costs, mentioned in subparagraphs 2 to 7 of Article 86 of the present Code, shall be included into the Customs Value in case they are not considered in purchasing price of goods.

Article 88. Costs Not Included in the Customs Value

The Customs Value shall not include:

1. indirect taxes paid, subject to payment in the exporting country or separately recorded in payment documents;
2. transportation, loading, unloading, transshipment, insurance, commission and mediation /broker/ costs made in the importing country;
3. the per cents, resulted from the financial obligations of the purchaser to the supplier, with exception of the costs mentioned in subparagraph 7 of Article 86 of the present Code, and if the declarant substantiates that the given interest rate does not exceed the average interest rate used in similar transactions in the exporting country at the same or nearly the same period of time.
4. The cost of information in disks /programme files/.

Article 89. Determination and Declaration of Customs Value

1. Customs Value of goods transported through the Customs border shall be determined and declared, together with other information subject to declaration, by the person transporting goods or the person authorised by the latter.
2. In cases stipulated by the present Code, Customs Value of goods transported through the Customs border shall be determined by the Customs Authorities.

CHAPTER 14.

RULES FOR DETERMINING CUSTOMS VALUE

Article 90. Transaction Price Method For Determining Customs Value

1. Customs value of goods transported through the Customs border shall be recognised the transaction price calculated in compliance with the procedure stipulated in Chapter 13 of the present Code.
2. Customs value of goods transported through the Customs border shall be determined according to the transaction price method, if:

(a) there are no restrictions in respect of disposition or use of the goods by the purchaser other than restrictions imposed by laws of the Republic of Armenia or decisions of the Government, or those limiting the geographical area in which the goods may be resold;
(b) the sale or the sale (purchasing) price of goods are no subject to some condition or consideration, for which customs value cannot be determined based on the cost of goods;
(c) any part of the proceeds of any subsequent use, resale or disposal of the goods by the purchaser does not accrue, directly or indirectly, to the vendor, except for the possibility to make additions to subparagraph 7, Article 86 of the present Code;
(d) the purchaser and the vendor are not related, and if they are, customs value appraised on the basis of transaction price is not considered obviously low or unreal, or it may be determined or verified;
(e) the customs value determined on the basis of identical or similar goods accordingly imported or exported during the same or nearly the same period of time does not significantly differ from the customs value.

Article 91. Cases of Determining Customs Value by Customs Authorities

1. Customs value determined by the declarant shall not constitute grounds in the following cases:
(a) if the declarant does not submit documents substantiating transportation, loading, unloading, transshipment, insurance costs made for goods before they reach the Customs border of the Republic of Armenia;
(b) when it is impossible to determine or verify customs value on the basis of the documents submitted by the declarant;
(c) if the purchasing price method for determining customs value is not applicable.
2. Customs value of goods, stipulated in subparagraph 1 of the present Article, which are transported through Customs border, is determined by the Customs Authorities, in compliance with Articles 92 to 97 of the present Code. In consideration of the present paragraph, the Customs Authorities use the information at their disposal, as well as the information submitted by the declarant, and the one acquired from the foreign State Bodies and the State Bodies of the Republic of Armenia. The procedure of submitting information to the Customs Authorities by the State Bodies of the Republic of Armenia concerning the present subparagraph shall be determined by the Government of the Republic of Armenia.

Article 92. Determination of Customs Value According to the Transaction Price of Identical Goods

Customs value of goods transported through the Customs border of the Republic of Armenia shall be determined in a sale of identical goods in the exporting country in substantially the same quantity at the same or nearly the same period of time for export to the importing country.

Article 93. Determination of Customs Value According to the Transaction Price of Similar Goods

Customs value of goods transported through the Customs border of the Republic of Armenia shall be determined in a sale of similar goods in the exporting country in substantially the same quantity at the same or nearly the same period of time for export to the importing country.

Article 95. Determination of Customs Value on the Basis of Computed Value

Customs value of goods transported through the Customs border shall be determined on the basis of computed value, which includes:

(a) the value of materials employed in producing of goods transported through the Customs border and their processing;
(b) an amount for profit and general expenses equal to that usually reflected in sales of identical goods, which are made by producers in the country of export for import into the Republic of Armenia or in the Republic of Armenia for export to the country of import.

Article 96. Residual Method for Determining Customs Value

If the customs value of goods transported through the Customs border cannot be determined under the preceding provisions on customs value determination stipulated in the present section, it shall be determined on the basis of data available in the Republic of Armenia. It shall not comprise:

(a) the selling price in the Republic of Armenia of merchandise produced in the Republic of Armenia for determining customs value of goods;
(b) a system which provides for the determination of customs value of goods at the higher of two alternative values;
(c) the price of merchandise in the domestic market of the country of export for calculation of customs value for the goods being imported;
(d) a cost of production, except for the computed value, stipulated in Article 95 of the present Code, determined for identical or similar goods;
(e) the price of merchandise for export to a country other than the Republic of Armenia;
(f) minimum customs values;
(g) arbitrary values.

Article 97. Succession of Implementation of Rules for Determining Customs Value

1. Rules, mentioned in this section, for determining customs value shall be applied in succession, except for the cases stipulated in subparagraph 2 of the present Article.
2. Based on the request of the declarant, the succession of implementation of rules, stipulated in Articles 95 and 96 of the present Code, shall be changed. In case such request is not observed the determined succession shall be implemented. If it is impossible to determine customs value by implementing the rules of Article 96 of the present Code, it shall be determined according to the rules stipulated in Article 95 of the present Code.

CHAPTER 15.

INFORMATION USED FOR DETERMINING CUSTOMS VALUE AND APPEAL AGAINST ACTIONS AND DECISIONS OF CUSTOMS OFFICIALS

Article 98. Information Used For Determining Customs Value

1. Based on the written request of the person transporting goods, the Customs Authorities shall within five working days period inform the latter about the amount of customs duty and the methods of its determination.
2. The information provided by the declarant to the Customs Authorities for determining customs value of goods shall be used by the latter exceptionally for the aims stipulated in Article 76 of the present Code. The information shall not be submitted to any other person without the assent of the declarant, except for the cases stipulated by legislative acts.
3. The information used for determining customs value, as well as its sources shall be open and shall be subject to publication by the Ministry of State Revenue of the Republic of Armenia within at least ten-days period before they enter into force.
Recalculation of foreign currency for determining Customs Value of goods shall be carried out exceptionally by the Central Bank of the Republic of Armenia, according to the exchange rate of the day the goods have been declared.
4. Recalculation of foreign currency for determining Customs Value of goods shall be carried out exceptionally by the Central Bank of the Republic of Armenia, according to the exchange rate of the day the goods have been declared.

Article 99. Appeal Against the Decisions Made by the Customs Authorities or Customs Officials Concerning Determination of Customs Value

1. If the Customs Authorities find it necessary to determine or verify the customs value of the goods declared by the declarant, the customs formalities shall be produced according to the customs value (transaction price) declared by the declarant, provided one month bank guarantee is available for the disputed amount on condition of further final settlement in compliance with the final decision made.
2. In the event of disagreement of the Customs Authorities with the customs value declared by the declarant or methods of customs value determination they shall, on the day of declaration submission, draw up and provide the declarant with a notice of rejection according to the procedure established by the Ministry of State Revenue of the Republic of Armenia, substantiating the reason for rejection of the size of customs value declared by the declarant or method of determination of customs value and the address of the superior Customs Authority or official to whom the declarant can lodge the appeal.
3. In the event of disagreement of the Customs Authorities with the customs value declared by the declarant or methods of customs value determination the declarant, after receiving rejection notice, may within ten working days period appeal to the superior Customs Authority or lodge a complaint in due course of law. The superior Customs Authority shall be obliged to make a relevant decision within a month period and inform the declarant about it. The appeal shall not exempt the declarant from the liability of paying customs duties within a specified period of time.

SECTION 5.

CUSTOMS PAYMENTS

CHAPTER 16.

GENERAL PROVISIONS ON CUSTOMS PAYMENTS

Article 100. Customs Payments

In accordance with the present Code and other legal acts of the Republic of Armenia the customs payments shall be made at the time of transporting goods across the Customs border of the Republic of Armenia, including:

(a) customs duties;
(b) customs user fees;
(c) taxes, duties and other mandatory payments defined by law and levied by the Customs Authorities.

CHAPTER 17.

CUSTOMS DUTIES

Article 101. Customs Duties

Customs duties are mandatory payments levied on behalf of the State Budget pursuant to the procedure and in the amounts stipulated by the present Code for transportation of goods through the Customs border of the Republic of Armenia.

Article 102. Procedure for Establishing Customs Duties

Customs duties and rates thereof shall be defined by the present Code.

Article 103. Customs Duties by the Nature of Function

The following customs duties shall be applied in the Republic of Armenia by the nature of function:

(a) export duties are paid for goods exported out of the Customs territory of the Republic of Armenia;
(b) import duties are paid for goods imported into the Customs territory of the Republic of Armenia;
(c) seasonal duties are paid within certain periods of the year for exporting certain goods out of the Customs territory of the Republic of Armenia or importing thereof into the territory of the Republic of Armenia.

Article 104. Customs Duties by the Method of Calculation

The following customs duties shall be applied in the Republic of Armenia by the method of calculation:

(a) ad valorem duties are calculated in percentage of the customs value of goods subject to taxation;
(b) specific (fixed) duties are calculated at a fixed tariff rate per unit of goods subject to taxation;
(c) mixed duties are ad valorem and specific (fixed) duties combined.

In order to protect the interests of the economy of the Republic of Armenia and encourage economical activity the following customs duties shall be applied:

(a) countervailing duties are applied in response to discriminatory actions against the Republic of Armenia by citizens, states or associations thereof;
(b) incentive duties are applied with the purpose of reducing the customs duties levied on goods imported from specific countries.

Article 105. Customs Duty Rates

1. Customs duty shall be levied according to the following rates:
2. In case the tariff rate of customs duty established for goods falling under the subgroup specified in paragraph 1 of the present Article is other than the one stipulated for a group of goods within which the given subgroup is falling, the tariff rate of customs duty established for the given subgroup shall be applied, irrespective of the tariff rate established for the said group of goods.
3. In case of application of Harmonized System of Codes in the Republic of Armenia the corresponding Codes of Harmonized System shall be applied to the relevant goods instead of those stipulated in paragraph 1 of the present Article.

Article 106. Calculation and Payment of Customs Duties

1. Calculation of customs duties shall be implemented by Customs Authorities according to the current rate of the day of submitting declaration.
2. Payment of Customs duties shall be implemented according to procedure established by the Government of the Republic of Armenia within 10 days period from the day of transportation of goods through the Customs border of the Republic of Armenia.
3. Payment of customs duties shall be made with the official currency (dram) of the Republic of Armenia

Article 107. Waiver of the Customs Duties

The following shall be exempt from customs duties:

1. Goods released under the customs regime of transit shipment.
2. Goods released under the customs regime of temporary import for the first year of import except for the cases established by the Government of the Republic of Armenia.
3. Goods released under the customs regime of temporary export for the first year of export except for the cases established by the Government of the Republic of Armenia.
4. Goods released under the customs regime of temporary import for reprocessing.
5. Goods released under the customs regime of temporary export for reprocessing.
6. Goods released under the customs regime of import into the customs warehouse.
7. Goods released under the customs regime of import into unbonded customs warehouse.
8. Goods released under the customs regimes of re-import and re-export, except for the cases stipulated by the present Code.
9. Goods released under the customs regime of destruction.
10. Goods released under the customs regime of import into duty free shop.
11. Means of transportation used for regular intergovernmental carriage of freight, luggage and passengers, as well as the tools, fuel, food that may be necessary in transit, at stopovers, or to fix the malfunctions of said means of transportation.
12. Currency, foreign currency and securities.
13. Goods that enter the Customs territory of the Republic of Armenia within the framework of programs of humanitarian assistance or charity. In the event of absence of direct reference in the legislation (including the international agreements of the Republic of Armenia) to the nature of a program, the latter shall be classified as pertaining to humanitarian assistance, charity and technical (other) nature by the Authorised Body of the Government of the Republic of Armenia co-ordinating humanitarian assistance.
14. Goods included in the list established by the Government of the Republic of Armenia, which are meant to complement the capital funds of trade organisations. In case of alienating the privilege after 3 years of taking advantage of the latter, the amount of the customs duty, including calculated amount of the penalty accrued for the delay in payment, shall be subject to collection pursuant to the procedure stipulated in the present Code and other legal acts.

Article 108. Other Privileges of Goods Transported through the Customs border of the Republic of Armenia by Natural Persons

1. Without any customs duties natural persons may transport through the Customs border of the Republic of Armenia as accompanying cargo goods not exceeding the equivalent of 500 US$ in their total value and 50 kilograms in their total weight.
2. Within the limits stipulated in subparagraph 1 of the present Article the Government of the Republic of Armenia shall establish the in kind quantity for separate kind of goods.
3. Within the meaning of the present Code the term "accompanying cargo" means the luggage crossing the Customs border of the Republic of Armenia at the same time with a natural person, or being delayed for reasons beyond the natural person's control, lost or sent to other place by mistake at the time of crossing the Customs border of the Republic of Armenia.
4. One and the same natural person may take advantage of the privilege stipulated in subparagraph 1 of the present Article not more than once within 180 days.
5. Natural persons may transport duty free effects they wear or have in their luggage through the Customs border of the Republic of Armenia. These shall be deemed to constitute goods that:
(a) do not have manufacturer's packaging, labeling and are placed in the luggage;
(b) are worn by the natural person at the time of transportation, with the exception of the types of goods referred to in subparagraph 2 of the present Article.
6. Natural persons arriving in the Republic of Armenia for permanent residence may import duty free property for their personal use.
7. Natural persons of the Republic of Armenia may take across the Customs border of the Republic of Armenia duty free their inherited property, upon presenting to the Customs Authorities the relevant documents.

Article 109. Other privileges of customs duties

The law may define other privileges of customs duties.

Article 110. Import of goods by foreign physical persons

1. If foreign physical persons import goods in, then they for release under "re-import" regime of goods "imported for free circulation", formerly "exported for free circulation" shall be obliged to:

a. present the supply contract signed with the RA legal or physical person to customs bodies;

b. get registered as a person realizing entrepreneurial activity in the RA by order defined in legislation;
2. The Customs Authorities may prohibit the import of the goods if the requirements defined in 1st paragraph of this Article are not met.
3. The RA government shall define the in kind number and size of apparent commercial quantities of goods.

Article 111. Levy and return of customs duties, the responsibility for non-payment

1. The extra amount of customs duties levied pursuant to the procedure stipulated by the present Code shall be credited (transferred) by the Customs Authorities towards other liabilities due to the Customs Authorities or shall be returned no later than within 30 days following the receipt of an application.
2. The application for transfer or return of extra amount of customs duties can be submitted within 2 years after the payment.
3. The Customs Authorities shall levy the amount of customs duties not paid by the owner of the goods within a period of two-year following the emergence of the liability to pay.
4. In the event of late payments of the customs duties exceeding the stipulated periods a penalty shall be levied from the payer in the amount of 0.2 percent of the overdue payment of the customs duties for every day of the delay.

CHAPTER 18.
CUSTOMS USER FEES

Article 112. The "Customs user fees"
1. Customs user fees are compulsory payments to be paid to the State budget in accordance with the amount and procedure established by the present Code that is used for promotion of customs affairs and increasing the level of material and household security and social protection of customs officials.
2. The RA ministry of state revenue shall present accounts about the disposal of user fees amounts in the previous year to the RA government within the first 3-month period of each year.
Article 113. Rates of Customs user fees
1. 3,500 drams shall be paid as customs user fees for carrying out customs formalities (except cargo processing) related to goods and other articles as well as to remittance of currency and foreign currency transferred by banks, through the customs border of the Republic of Armenia.

2. The amount of customs user fees paid for inspection and recording of goods (except goods transported by pipelines and electricity transmission) shall be as follows:

a. 1,000 drams for carrying out customs control of each cargo under 1 ton of weight;
b. 300 drams for each additional (or less) ton for cargo over 1 ton of weight.

3. User fees equal to 500.000 drams shall be paid for Customs control of goods transported through pipe lines and electricity cables and for their calculation.
4. When customs formalities, or some parts of these formalities related to goods are carried out elsewhere than in places determined by the Customs Authorities, for each corresponding action customs user fees shall be equal to two fold of determined amount.

5. 1,000 drams shall be levied for each document (form) provided by the Customs bodies. The RA Ministry of State Revenue shall establish the list of documents mentioned above.

6. For carrying out Customs accompanying on the territory of the Republic of Armenia, the amount of customs user fees shall be equal to 10,000 drams for each 100 km. Customs accompanying by transit shipment shall be compulsory except the cases stipulated in the present Code and in case it is impossible to implement the means of the customs security, and in all other cases it is left up to the carrier and shall be carried out on the basis of written request presented by the latter.

7. For providing Customs warehousing by the Customs Authorities, the amount of customs user fees shall be:
a) 1,000 drams daily for cargo under 1 ton of weight

b) 300 drams daily per additional or full ton for cargo weighing 1 ton or more

8. For the purposes of Customs inspection of means of transportation, the amount of customs user fees is:

a. 2,000 drams for a car with not more than 10 seats;

b. 5,000 drams for all other means of transportation.

Article 114. Privileges in payment of Customs user fees:

The following goods are exempt from Customs user fees:

a. those that during transportation enter the customs territory of Republic of Armenia within the framework of humanitarian aid programs. Where the Law (and international agreements) does not clearly provide the terms of identification of such humanitarian or technical (and other) aid programs, these terms are provided by the Authorised Body of the Government of Republic of Armenia co-ordinating the issues related to humanitarian aid;

b. accompanying goods determined by law, transported by physical persons ( with
the exception of entrepreneurs) across the Customs border of Republic of Armenia, except for means of transportation of individual use);

c. the part of goods imported by physical persons not exceeding the amount stipulated by Article 98 of the present Code;

d. cultural values, temporarily exported with notification of intended return in accordance with the procedure established by the legislation in force;

e. means of transportation carrying out regular international conveyances in the process of transportation.

Article 115. Indexation of Customs User Fees Amount
From February 2000, for every 12 - month period the absolute rate (in Drams) of Customs user fees stipulated in Article 113 of the present Code shall be augmented by the whole number in percentage of the reported change of average value of Dram during the previous year.

Article 116. Collection and Return of Customs User Fees, Responsibility for Non-Payment

1. Based on the request of the payer the customs user fees paid in excess of the amount that is calculated pursuant to the procedure stipulated by the present Code and other legal acts, shall be credited by the Customs Authorities towards other liabilities due to the Customs Authorities or shall be returned no later than within 30 days following the receipt of an application by the payer seeking such return.
2. The application seeking the return or credit towards other liabilities of customs user fees collected in excess, shall be accepted within one year following the receipt thereof.
3. The amount of customs user fee not paid or not fully paid by the persons transporting goods shall be collected by the Customs Authorities within a period of one year following the emergence of the liability to pay.
4. According to the present Code, the payment of customs user fees shall be charged within a three-day period after relevant services have been provided.

5. Customs user fees shall be paid in the official currency of the Republic of Armenia.

6. Should the payer fail to comply with the payment deadline, a penalty is charged for each day of delay in the amount of 0.2% of unpaid customs user fees.

SECTION 6.

CUSTOMS FORMALITIES

CHAPTER 19.
GENERAL PROVISIONS

Article 117. Fulfilment of Customs Formalities

Customs formalities shall be fulfilled in accordance with the procedure established by the present Code and other legal acts of the Republic of Armenia.

Article 118. Place and Time for Fulfilment of Customs Formalities

1. Customs formalities shall be fulfilled in the place assigned for this purpose, during the working hours of the Customs Authorities.
2. When requested by a concerned person, on his own account in the amount stipulated in the present Code, and with the consent of the Customs Authorities, customs formalities may be fulfilled in some other place and outside working hours.

Article 119. Presence of the Authorised Person at the Customs Formalities

Any person entitled to deal with goods and means of transportation in accordance with the legislature of the Republic of Armenia shall be present at customs formalities.

Article 120. The Language of Customs Formalities

Customs formalities including filling in of the document forms shall be fulfilled in Armenian or any other language previewed by the Ministry of State Revenue and accepted in the international field.

Article 121. Participation of Other Government Bodies in Customs Formalities

Whenever specified by legislation, the customs formalities for goods and means of transportation transferred across the Customs border of the Republic of Armenia, may be concluded after veterinary, sanitary-hygienic and ecological control by other Government Bodies.

Article 122. Utilization and Possession of Goods and Means of Transportation Where Customs Formalities Have Not Been Fulfilled

Goods and means of transportation in the process of fulfilling customs formalities may not be utilized or possessed, unless stipulated by the provisions of the present Code and other legal acts.

Article 123. Simplified Procedures for Customs Formalities

Simplified procedures for customs formalities may be applied to certain goods, whenever imported across the Customs borders of the Republic of Armenia, or exported out of the Customs borders of the Republic of Armenia, as established by the Government of the Republic of Armenia or as envisaged by international agreements.

Article 124. Measures Required for Fulfillment of Customs Formalities

1. Whenever required by the Customs Authorities of the Republic of Armenia, the person transporting goods across the Customs borders of the Republic of Armenia, or the person directly involved in transportation, the founder of the Customs warehouse or other persons with appropriate authorizations with respect to transportation of goods and means of transportation, across the Customs borders of the Republic of Armenia, should carry out the transportation, weighing, or other activities concerning measurement of the amount of the goods, loading, unloading, recovery of packaging damages, opening of packages, packaging and repackaging, opening of similar Customs warehousing facilities, or facilities within Customs control, whenever goods and means of transportation may be found.

2. Before the completion of customs formalities, activities specified in paragraph 1 of the present Article may be carried out only by permission of the Customs Authorities.

Article 125. Sampling of Goods or their Specimen for Customs Formalities

1. The Customs Authorities have a right to take samples or specimens of goods for customs formalities, as well as to carry out investigations.

2. With the permission from the Customs Authorities samples or specimens of goods taken from the goods in Customs safekeeping, can also be taken by persons authorized to deal with goods or other Government Authorities carrying out appropriate control.

3. Samples or specimens of goods shall be taken in minimum sufficient quantities for investigation.

4. Whenever samples or specimens of goods are taken, a legal statement shall be drawn up, in accordance with the procedure established by the Ministry of State Revenue.

5. Persons or their representatives authorized to deal with goods in accordance with the legislature in force of the Republic of Armenia are allowed to be present during the process of taking samples and specimens. Officials of the Customs Authorities shall be present at the process of taking samples and specimens by other State Authorities or persons authorized to deal with goods.

6. The State Authorised Body or a person, entitled to deal with goods, in accordance with legislation in force of the Republic of Armenia, shall cover all expenses arising from taking samples and specimens.

7. Whenever the authorized persons dealing with goods in accordance with legislature of the Republic of Armenia do not show up for 10 consecutive days after the goods have been presented, the Customs Authorities may take samples or specimens in the absence of authorized persons. In this case two persons shall be involved in the process of sample/specimen taking.

8. Persons or their representatives authorized to deal with goods in accordance with legislature in force of the Republic of Armenia have a right to know the outcome of the investigation. Other State Authorised Bodies of the Republic of Armenia shall inform the Customs Authorities about the results of the investigations they carry out.

9. The Customs Authorities of the Republic of Armenia shall not cover the expenses, incurred by the citizen , when presenting samples or specimens.

10. The person authorized to deal with goods in accordance with legislature in force of the Republic of Armenia shall not incur any expenses with respect to the investigation process, unless it was undertaken on his own account.

11. The procedure for sample or specimen taking shall be specified by the Ministry of State Revenue of the Republic of Armenia.

CHAPTER 20.
TEMPORARY STORAGE

Article 126. Temporary Storage

In cases stipulated under the provisions of the present Code and other legal acts goods and means of transportation shall remain under the temporary control of the Customs Authorities.

Article 127. Place for Temporary Storage

In cases referred to in Article 123 of the present Code the temporary storage of goods and means of transportation shall be made in customs warehouses established by the Customs Authorities.

Article 128. Relevant Documentation Required for Preserving Goods and Means of Transportation in Warehouses for Temporary Storage

With the view to keep the goods and means of transportation in warehouses for temporary storage the Customs Authorities shall only require those documents that allow to characterise the mentioned goods and means of transportation.

Article 129. Time Limits for Temporary Storage

1. Goods and means of transportation shall be temporarily stored till the amount for temporary storage defined by law equals to the cost of goods.
2. The time limit mentioned in paragraph 1 of the present Article may confine with the view of production and expiration date of the goods and specificity of keeping thereof.

Article 130. Actions Applied to Goods in Warehouses for Temporary Storage

Goods in warehouses for temporary storage may be:

a. Examined or accounted by the Customs Authorities or, with the consent of the latter, by the State Authorised Bodies and persons authorised to deal with the goods and means of transportation in question;
b. Taken samples or specimens with the permission of the Customs Authorities of the Republic of Armenia;
c. Subject to certain operations by persons authorised to deal with the goods and means of transportation required for storage of goods, including recovery of damaged packaging.

CHAPTER 21.
DECLARATION

Article 131. Declaration of Goods and Means of Transportation

1. The goods and means of transportation shall be declared at the regional customs houses or customs points of the Republic of Armenia in compliance with the procedure established by the RA Ministry of State Revenue, except for the cases stipulated by law if:

a. the referred goods and means of transportation are carried across the Customs border of the Republic of Armenia;
b. with respect to which the customs regime has been changed.

2. The declaration shall be effected in forms specified by the RA Ministry of State Revenue; the latter shall be delivered in writing or by word of mouth, producing concise information about goods and means of transportation, the purpose of their being transported, as well as other information required for the customs control and customs formalities.

Article 132. Place of Declaration

1. Goods and means of transportation shall be declared at those Customs Authorities where the customs formalities are exercised.
2. Unloaded means of transportation or means of transportation only for passengers carriage shall be declared at the Customs Authorities when crossing the customs border, except for air means of transportation to be declared at the place of destination (airports).

Article 133. Time Limits for Producing Customs Declaration

The customs declaration of goods shall be produced within time limits defined by the Ministry of State Revenue of the Republic of Armenia.

Article 134. Declarant

1. The declarant may be a person transporting goods and means of transportation or a person authorized by him.
2. The declarant shall only be a person of the Republic of Armenia, except for the cases when goods are transported by natural persons across the customs border of the Republic of Armenia.
3. The declarant shall incur liability for authenticity of the information declared.
4. In case the person transporting goods across the customs border of the Republic of Armenia is mentally ill or suffers from other serious disease, or if he is under sixteen, the declaration shall be effected by a lawful representative of the latter incurring liability defined by the present Code for the declarant, including liability for authenticity of the information declared.

Article 135. Rights and Liabilities of Declarant

1. Before the customs declaration the declarant shall have the right to carry out examination and take measurements of goods and means of transportation under customs control, take samples or specimens of goods by consent of the Customs Authorities, provided that they shall be included in the declaration.
2. In case of declaration of goods and means of transportation the declarant shall:

a. Declare goods and means of transportation in accordance with the procedure established by the present Code;
b. At the request of the Customs Authorities present the goods and means of transportation to be declared;
c. Provide the Customs Authorities with all relevant information and documents required for customs purposes.

Article 136. Documents and Information to be Provided for the Customs Affairs

1. All documents required for the implementation of customs affairs shall be presented to the Customs Authorities at the time of declaration.
2. The Customs Authorities shall be entitled to request other information with a view to verify the information contained in the customs declaration and presented documents.
3. The list of documents and other information required for the implementation of customs affairs shall be specified by the Government of the Republic of Armenia.

Article 137. Acceptance of the Customs Declaration

1. The presented customs declaration shall be accepted by the Customs Authority.
2. Before accepting the customs declaration the customs official shall:

a. Verify the right implementation of the procedure established for filling in the customs declaration form;
b. Warn the declarant about the liability for producing false information;
c. Verify authenticity of the information declared by an oral questioning;
d. Ask the declarant to change his declaration making relevant alterations and amendments in case of detection of discrepancies in it according to the procedure stipulated in subparagraphs (a) and (c) of the present point.

3. The customs declaration shall be considered a document of legal nature following the date of fulfilling the formalities for its acceptance.

Article 138. Alterations, Amendments and Renunciation of the Customs Declaration

1. Alterations and amendments shall be implemented in the declaration before acceptance of the latter by the customs official.
2. Officers of the Customs Authority shall not be entitled, on their own initiative, by order or request of any person, to complete in writing the customs declaration, alter or amend the data contained in the given declaration, except for the amendments to be introduced by an officer of the Customs Authority.
3. The declarant shall apply to the Customs Authorities for renunciation of the customs declaration after fulfilling the customs formalities in accordance with the procedure established by the Ministry of State Revenue of the Republic of Armenia.

Article 139. Simplified Procedure for Declaring Goods and Means of Transportation

The Ministry of State Revenue of the Republic of Armenia shall establish a simplified procedure for declaring goods and means of transportation with a view to improving the fulfilment of the customs formalities.

Article 140. Preliminary Declaration

1. Before transporting goods and means of transportation across the customs border of the Republic of Armenia, the declarant shall have the right for preliminary declaration of the goods and means of transportation; the preliminary declaration of goods shall be subject to revision after transportation of goods and means of transportation across the customs border of the Republic of Armenia.
2. The cases and procedure for preliminary declaration of goods shall be established by the Ministry of State Revenue.

SECTION 7.

CUSTOMS CONTROL

CHAPTER 22. GENERAL PROVISIONS

Article 141. Implementation and Types of Customs Control

1. Customs control is implemented in order to maintain regulations for transportation of goods and transportation means by persons. All goods and transportation means that are transported through the RA Customs border are subject to the Customs control if not otherwise defined by this code.

2. Customs control shall be performed by officials of the Customs Authorities. It implies the following:

a) Verification of information and documents required for customs affairs;

b) Customs examination (examination of goods and means of transportation; examination of a person as a particular type of customs control);

c) Accounting for goods and means of transportation;

d) Oral questioning of physical persons;

e) Auditing of accounting and reporting systems;

f) Inspection of customs warehouses, free customs warehouses, duty-free shops, customs control zones and other construction sites and territories where the goods and means of transportation subject to customs control may be stored, or activities subject to customs control.
g) Application of customs security tools
h) Other types of control stipulated by the RA law and other legal acts of the Republic of Armenia;

3. The technical measures that do not endanger the protection of animals and plants, human life and heath, or do not cause damage to goods, means of transportation and persons shall be implemented during the performance of customs control.

4. The procedure for performance of customs control shall be established by the Government of the Republic of Armenia.

Article 142. Time limits for goods and means of transportation under Customs control by customs regimes.
Goods and means of transportation being transported through the RA customs border by customs regimes are under customs control:
a. Starting from the time of import up to the time of release in case of "Import for free circulation" and "Reimport" regimes.
b. Starting from the time of presentation of necessary documents for customs control up to the time of export from the RA customs territory in case of "Export for free circulation" and "Reexport" regimes.
c. Starting from the time of import up to the time of export from the RA customs territory in case of "Temporary import" and "Temporary import for processing" regimes.
d. Starting from the time of presentation of necessary documents for customs control up to the time of reimport into the RA customs territory in case of "Temporary export" and "temporary export for processing" regimes.
e. Starting from the time of import up to the time of export from the RA customs territory in case of "Transient transportation" regime.
f. Starting from the time of import up to the time of release under other regime in case of "Import into the customs warehouse" and "Import into free customs warehouse" regimes.
g. Starting from the time of import up to the time of realization in case of "Import into duty free shop" regime.
h. Starting from the time of import up to the time of destruction in case of "Destruction" regime.

Article 143. Customs Control Zones

1. In order to perform customs control, customs control zones may upon suggestions of the RA Ministry of State revenues be created by the Government of the Republic of Armenia in territories adjacent to the RA customs border, at the place of fulfillment of the customs formalities, at the location of the Customs Authorities and other places..
2. The implementation of any trading activities, shift of goods, means of transportation as well as any activity /entry and exit included/ of persons including officials of other State Bodies within the territory of customs control zone within the limits of their authority shall take place only by permission and under the control of the Customs Authorities, except the cases stipulated by the Legislation in force.

Article 144. Documents and Information Required for Customs Control.

1. Any person transporting goods and means of transportation across the customs border of the Republic of Armenia, or implementing such kind of activities that are subject to the control of the Customs Authorities, shall provide the Customs Authorities with documents and information required for the implementation of the customs control.

2. The list and procedure for presentation of documents and information shall be specified by the Government of the Republic of Armenia.

3. Law enforcement bodies, persons of the Republic of Armenia shall, on their own initiative or upon application of Customs Authorities, provide information required for the performance of customs control.

Article 145. Involvement of Specialists and Experts in the Implementation of Customs Control.

1. In order to implement customs control the Customs Authorities shall, in accordance with the legislation, be legally entitled to involve specialists and experts from other law-enforcement and supervisory bodies, institutions and organizations (irrespective of the type of ownership and identity).

2. Requests of the Customs Authority for the involvement of specialists and experts in the performance of customs control shall be subject to mandatory execution by the heads of those states bodies, state institutions and organizations where the aforementioned specialists and experts are employed.

Article 146. Access of Officials of the Customs Authorities to Buildings and Territories specified for implementation of Customs Control

In order to perform the customs control, officials of the Customs Authorities shall, on the basis of court sanction, except for the cases stipulated by law, have the right to enter the buildings and territories belonging to persons:
a. Where the goods and means of transportation subject to such control may be located
b. Where documents required for the performance of customs control may be available,
c. Where any activity subject to the control of the Customs Authorities could be performed.

Article 147. Customs security tools and their application.

1. Customs security tools can be applied by Customs Authorities to the means of transportation, buildings and other places where the goods and means of transportation subject to customs control are /or may be located, the places where activities subject to the control of the Customs Authorities are performed as well as the goods and means of transportation subject to customs control.

2. Application of customs security tools shall be carried out through applying stamps, seals, numerical or alphabetical identification marks, or/and other type, through branding, taking test samples and specimens, description of the goods and means of transportation, through using designs, scale images, photos, illustrations, documents accompanying goods as well as any other ways of identification.

3. Customs security means may only be removed or modified by the Customs Authorities or upon their authorization, except in the cases of irretrievable loss of goods and means of transportation, real danger of substantial deterioration or destruction of them. The Customs Authorities shall be expeditiously notified of the removal, destruction or modification of identification means and shall be presented with evidences of the aforementioned dangers.

Article 148. Inspection of goods and means of transportation

1. The customs bodies shall be entitled to perform inspection of goods and means of transportation in order to verify the legality of transportation of goods and means of transportation across the customs border of the Republic of Armenia as well as accounting for collection of customs payments.

2. A representative of the person that handles transportation of goods and means of transportation across the customs border of the Republic of Armenia or provides space for their storage shall be present during the inspection.

Article 149. Inspection of physical persons' luggage

1. Any official of regional customs house or customs point shall be entitled to perform inspection of personal luggage by opening it, if there are reasons to suppose that a citizen is transporting across the RA customs border articles subject to inspection or evaluation, or collection of customs duties by the other State authorities, as well as articles, transportation of which across the customs border of the Republic of Armenia is prohibited or restricted.

2. Customs bodies shall be entitled to inspect personal effects of the physical person crossing transit zone in the territory of the Republic of Armenia if there are bases to assume that the person is transporting goods prohibited for transit shipment via the territory of the Republic of Armenia.

3. The inspection of personal effects of physical person shall be performed in the presence of the person or his authorized representative.

4. In the absence of physical person or his authorized representative the inspection of goods shall be performed in the following cases:

a. If there are reasons to assume that the luggage contains articles that endanger or may endanger animals and plants, human life and health or inflict material damage to citizens;

b. In the absence of the physical person or his authorized person within 30 days period from the date of receiving the luggage;

c. In case of delivery of goods by international mail.

5. In the absence of the physical person or his authorized representative the inspection of goods shall be performed in the presence of representatives of the organization that performs transportation, delivery or storage of such goods.

Article 150. Inspection of Person

1. The inspection of person as an exclusive type of customs control shall be implemented upon a written statement of the Head or the Deputy Head of customs house or customs point, provided there are sufficient grounds to assume that the physical person crossing the customs border or customs control zone or transit zone of the international airport of the Republic of Armenia conceals articles of smuggling or such articles that constitute direct cases of violation of customs regulations or are prohibited for transit shipment via the territory of the Republic of Armenia.

2. Before the commencement of inspection an official of the customs house or customs point shall be liable to submit a written statement of the Head or the Deputy Head of customs house or customs point to the physical person, as well as to offer him to voluntarily surrender concealed goods.

3. The inspection of person shall be performed by an official of customs house or customs point being of the same sex as the person subject to inspection as well as in the presence of two assistants of the same sex in a separate room the conditions of which are in conformity with sanitary and hygienic regulations. Access to that room shall be denied to physical persons not participating in the inspection, the possibility of their presence at the inspection being excluded as well. The body examination of a person shall be performed only by a medical specialist.

4. The inspection of physical persons with mental or other severe sicknesses or under 16 years old shall be performed in the presence of their legal representatives.

5. The regulations for inspection of person shall be defined by the Ministry of State revenues of the Republic of Armenia in agreement with the Ministry of Health of the Republic of Armenia.

Article 151. Selective Customs Examination

Goods imported into and exported out of the territory of the Republic of Armenia may be released without examination by a customs house or customs point in accordance with procedures established by the Government of the Republic of Armenia.

Article 152. Exemption from Certain Types of Customs Control

1. In cases defined by this Code and other legal acts the customs house or customs point does not perform certain types of customs control.

2. Non-performance of customs control shall not remove the persons' liability for compliance with the regulations for transportation of goods and means of transportation across the customs border of the Republic of Armenia.

3. Military Aircraft crossing the customs border of the Republic of Armenia shall not be subject to customs examination. The aircraft and carriers transporting military equipment that are performing military tasks by special order of the Ministry of Defense, as well military equipment en route shall be exempted from examination when crossing the customs border of the Republic of Armenia. Foreign Military and military carrier Aircraft crossing the customs border of the Republic of Armenia shall not be subject to customs examination.

4. Personal effects of military servicemen crossing the customs border of the Republic of Armenia shall be subject to customs examination, unless otherwise stipulated by the legislation.

5. Commanders of those military units in structure of which the military equipment referred to in paragraph 3 of the present Article is being transported, shall be liable for observance of the provisions of RA laws and other legislative acts regulating such activities.

Article 153. Customs control over goods and means of transportation

The additional control measures and reexamination of goods and means of transportation shall be performed before the end of the time period of goods and means of transportation being under customs control.

Article 154. Provision of Specimens and Test Samples for Implementation of Customs Control; Cargo and Other Similar Operations Related to Goods and Means of Transportation

1. By the request of the Customs Authorities carriers of goods shall provide specimens and test samples required for the performance of customs control, and perform cargo or other similar operations related to goods and means of transportation. Carriers shall not impede the performance of these activities.

2. The specimens and test samples of goods shall be provided in minimum quantity sufficient for investigation. In case of taking specimens or samples the Customs Authorities shall provide a written note to the importer or his representative.

Article 155. Presence of Carrying or transporting person or His Representative at Customs Control of Goods and Means of Transportation

1. Any carrier or transporter or his representative have the right to be present at customs control of their goods and means of transportation.

2. By the request of Customs authorities the carrier or transporter or his representative is liable to be present at the implementation of certain activities related to the customs control.

3. In case of well grounded suspicion of smuggling the Customs Authorities may implement customs control without participation of the carrier or transporter or his representative by permission of the Head of regional customs house or customs point. In that case the Customs Authorities shall be obliged to involve two assistants in the performance of customs control. As a result of customs control a statement shall be drawn up. One copy of this statement shall be given to the carrier of goods.

SECTION 8.

CURRENCY CONTROL

CHAPTER 23.
CURRENCY CONTROL IMPLEMENTED
BY THE CUSTOMS AUTHORITIES

Article 156. The Customs Authorities as the Currency Control Agents

1. The Customs Authorities of the Republic of Armenia shall implement currency control.
2. The Customs Authorities of the Republic of Armenia shall act as Currency Control Agents.
3. Functions and responsibilities of the Customs Authorities where realizing the currency control, prescribed in paragraph 2 of the present Article, shall be jointly established by the Central Bank of the Republic of Armenia and the RA Government Authorised Body.

Article 157. The Customs Authorities' Competence within the Currency Control Framework

The Customs Authorities of the Republic of Armenia shall carry out Currency Control with regard to the persons, crossing the Customs border of the Republic of Armenia, other than the customs regime of "import of goods into Unbonded Customs Warehouse", as well as currency control over foreign currency transactions, foreign currency values, securities of the Republic of Armenia expressed in foreign currency with respect to transportation of goods and means of transportation.

Article 158. Implementation of Currency Control by the Customs Authorities of the Republic of Armenia

1. Currency Control implemented by the Customs Authorities of the Republic of Armenia is an indispensable part of the Customs Control.

2. The Customs Authorities of the Republic of Armenia shall implement Currency Control reconciling it with the present Code and Currency Legislation of the Republic of Armenia.

Article 159. Responsibility for Offences Disclosed during the Currency Control Exercised by the Customs Authorities

Persons violating Currency Legislation of the Republic of Armenia discovered during the Currency Control by the Customs Authorities, shall bear responsibility in due course of law.

SECTION 9.

COUNTRY OF ORIGIN OF THE GOODS

CHAPTER 24.

GENERAL PROVISIONS ON COUNTRY OF ORIGIN OF THE GOODS

Article 160. Country of Origin and the Purposes of its Determination

1. Country of origin of the goods shall be deemed the country, where the good has been produced entirely or undergone sufficient reprocessing according to criteria defined in part 9 of this code.
2. Country of origin of the goods could be deemed the group of countries, Customs Union, any region of the world or country.
3. The determination of country of origin of goods in Armenian Republic (foreign or local) shall implement body authorized by RA government according to the order defined in this code.
4. The RA government shall define the order of provision of certificates and warrants on country of origin and implementation of investigation.

Article 161. The Purposes of Determination of Country of Origin

Country of origin of goods transported through the RA Customs border shall be determined for the purpose of tariff and non-tariff regulation, provision of certificates and/or warrants on country of origin and conduct customs statistics.

CHAPTER 25.
RULES FOR DETERMINATION OF COUNTRY OF ORIGIN

Article 162. The rules of determination of Country of Origin of the goods produced entirely in one and the same country

The following goods shall be considered entirely produced in one and the same country:

a. Live animals born and raised in that country;

b. Animals obtained by hunting, trapping, fishing, gathering or capturing in that country;

c. products made from live animals in that country;

d. plants or plant products harvested, picked or gathered in that country;

e. minerals and other naturally occurring substances, not included in definitions (a) to (d) above, extracted from the natural resources of that country or its sea bed;

f. Scrap and waste derived from manufacturing or processing operations or from consumption in that country, which are not useful or fit only for the processing of raw materials;

g. Products of sea fishing and other products taken from the world ocean ( in neutral waters) by vessels which fly the flag of particular country;

h. Products, made on board a country's factory ship which fly the flag of particular country, excluding the products referred to in (g);

i. Products that are obtained from Outer Space by spacecraft belonging or r