Gas and electrical energy
- 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.
Imports of natural gas and electrical energy are regulated by the Law “On Licensing” of the Republic of Armenia (hereinafter referred to as RA), the Law "On Energy" of the RA and the Public Services Regulatory Commission Decree No. 24 of 3 April, 2002 “On Approval of the temporary order of the licensing for import and export of natural gas and electrical energy in the power engineering sector of the Republic of Armenia”.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Imports of natural gas and electrical energy are subject to non-automatic licensing.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating in (intended for export) 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 import licensing system is not intended to restrict the quantity 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 and to administer control over persons engaged in the types of activities that are potentially most risky as threatening to the life and health of individuals, property, state and public interests.
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 RA, Law "On Energy" of RA and the Public Services Regulatory Commission Decree No. 24 of 3 April 2002 "On Approval of the temporary order of the licensing for import and export of natural gas and electrical energy in the power engineering sector of the Republic of Armenia". The legislation does not leave designation of products subject to licensing to administrative discretion. 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)?
To obtain a licence an applicant shall submit the application and all necessary documents to the Public Services Regulatory Commission of the RA. The Commission shall consider the application and shall adopt a decision within 60 days from the date when all the required documents are submitted by an applicant. There is no time-limit for submitting an application.
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 Public Services Regulatory Commission of the RA shall consider the application for a licence and adopt a final decision.
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) An applicant is adjudicated a bankrupt or insolvent;
(b) The specifications set out in the application do not comply with the technical requirements operating in the RA;
(c) In case of issue of a licence the right of another licence holder is limited;
(d) An applicant does not submit the required additional information or documents or the additional decision of the commission of experts, the absence of which do not permit to continue the consideration of the application;
(e) Documents or information submitted by an applicant are defective, obviously false or distorted and do not comply with the legislation of RA;
(f) The import or export may result in security and safety distortions of the power system as well as the rise of the statutory prices of natural gas and electrical energy sold to consumers of RA.
The reasons and legal bases for the refusal to issue a licence are clearly laid down in the decision on the refusal of the application for a licence which is given to the applicant in the due manner. Applicants have a right of appeal. The decision on the refusal of the application may be appealed to a court according to the legislation of RA.
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?
Only legal persons 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) A copy of a charter;
(b) A copy of a state registration certificate;
(c) Information about stockholders and their shares;
(d) The financial statement of common nature of a firm (if available also the copies of the inspection acts made by other bodies and auditor's conclusion of a firm made up during last year);
(e) Outline contract (agreement) on import concluded with a foreign dealer or memorandum of intentions about import or a final contract on import which will be considered to be in force from the point of obtaining an import licence;
(f) The conclusion of the system operator about the possibility of realizing the proposed regimes of importation;
(g) Financial guarantees according to the order established by the Commission;
(h) A receipt of state duty payment in accordance with the Law "On State Duties" of the RA.
Q11. What documents are required upon actual importation?
See point 10 above.
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 RA AMD 10,000,000 (Armenian Dram) must be paid for a licence.
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.
A legal person applying to the Commission for obtaining an import licence shall submit financial guarantees, by which the legal person or the guarantee are obligated to transfer the defined sum to the state budget of the RA. The amount of the financial guarantee for obtaining an import licence comprises 10 million Armenian Drams. In case of meeting the requirements set out in the licence, the Commission adopts a decision on reimbursement of the financial guarantee. It is guaranteed for the whole period of importation. It is a financial penalty, in case the legal person or the guarantee do not meet the requirements of the licence in the due manner.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Import licences are mainly granted according to the date specified in the contract of import concluded with a foreign dealer. In case of necessity of the extension of the validity period of a licence, the licence holder shall apply to the Commission at least 15 working days before the end date of the validity of a licence, designating the time required.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
If licence holders breach the requirements of the Law "On Energy" of the RA, do not meet or fulfil inappropriately or violate the requirements of the legal acts of the Commission and of the licences, the Commission is eligible to commission with the elimination of the violations and apply the following penalties:
- Warning;
- Tariff reduction;
- Suspension of a licence operation;
- Deprivation of a licence.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable between importers. A licence does not apply to the other legal persons jointly working with a licence holder, as well as to the legal persons established and acting by the participation of a licence holder.
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.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Administrative procedures are stipulated by the acquisition of the required documents for obtaining a licence designated in point 10 of this document.