Fireworks and diamonds
- Document symbol
- G/LIC/N/3/ARM/5
- Original language
- English
- Published on
- 03/10/2008
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Production, import or trade of fireworks materials and the trade, import, export and transportation of diamonds whether or not worked but mounted or set classified under HS nomenclature 710210000, 710221000, 710231000 are regulated by the Law “On licensing” of the Republic of Armenia. The licensing system is regulated by the Ministry of Finance.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Production, import or trade of fireworks materials and the trade, importation, export and transportation of diamonds whether or not worked but mounted or set classified under HS nomenclature 710210000, 710221000, 710231000 are subject to automatic licensing.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating in and coming from all countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The licensing of the aforementioned products is not intended to restrict the quantity or value of imports. The licensing purposes to protect the consumers’ rights, to support the regulation of developing market relations, to increase the quality of products and services.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The licensing is statutorily required. The licensing is regulated by the Law “On Licensing” of the Republic of Armenia. The government can not abolish the system without a legislative approval.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
In accordance with our legislation the licence shall be granted in 3 days after submitting the application and all necessary documents to the Ministry of Finance of the Republic of Armenia.
Q7.b. Can a licence be granted immediately on request?
There are no circumstances under which a licence can be granted immediately on request.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
There are no limitations as to the period of the year during which an application for a licence and/or importation may be made.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Only the Ministry of Finance of the Republic of Armenia shall consider the application for a licence.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
The application for a licence shall be refused if:
(a) Documents submitted by an applicant are defective, obviously false or distorted;
(b) Submitted documents do not comply with the requirements of the Law “On Licensing” and the legislation of the Republic of Armenia;
(c) The applying legal person, according to law and its charter, has no right to perform the requested type of activities subject to licensing;
(d) The applying natural person has no right to perform the requested types of activities subject to licensing;
(e) In other cases stipulated by laws or licensing procedures.
The reasons and legal bases for the refusal to issue a licence are clearly laid down in the decision on refusal of the application for a licence which is to be given to the applicant in the due manner. Applicants have a right of appeal. The decision on refusal of the application for a licence may be appealed to a court or higher authorities according to the legislation of the Republic of Armenia, within a month period following the day of receiving the respective refusal.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
All persons, firms and institutions are eligible to apply for a licence.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
The following information is required in an application:
(a) For legal persons:
(i) The name and the organizational-legal form, location and place(s) of activity;
(ii) Type of activity subject to licensing which the applicant intends to perform.
(b) For an entrepreneur or natural person:
(i) The name and surname, residence and place(s) of activity;
(ii) Type of activity subject to licensing which the applicant intends to perform.
The following documents are required:
(a) For legal persons:
(i) A copy of its charter;
(ii) A copy of a state registration certificate (with all copies);
(iii) A receipt of state duty payment in accordance with the Law "On State Duties" of the Republic of Armenia;
(iv) A copy of taxpayer’s identification number;
(b) For entrepreneur or natural person:
(i) A copy of a state registration certificate of entrepreneur;
(ii) A receipt of state duty payment in accordance with the Law "On State Duties" of the Republic of Armenia;
(iii) Information about a taxpayer’s identification number or number of a social card.
Q11. What documents are required upon actual importation?
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Yes. As provided by the Law "On State Duties" of the Republic of Armenia the following amounts of duties must be paid: 1.000.000 AMD (Armenian Dram) for a licence for trade, importation, export and transportation of diamonds (whether or not worked but mounted or set); 50 000 AMD for a licence for production, import or trade of fireworks materials for legal persons and 10 000 AMD for a licence for production, import or trade of fireworks materials for entrepreneur or natural person.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There is no deposit or advance payment requirement associated with the issue of licences.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The licences for production, import or trade of fireworks materials and the trade, importation, export and transportation of diamonds (whether or not worked but mounted or set) are granted without time limits.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of a licence or a portion of it.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable between other legal entities including importers.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
No, there are no other conditions attached to the issue of a licence.