The RA Law on “Making Amendments and Additions to the Law on State Duty,” adopted on June 12, 2024, will come into force on January 1, 2025. The changes and additions stipulated by this law will affect both companies engaged in foreign economic activities and, in some cases, citizens. Iravaban.net presents the main changes and additions to the aforementioned law, as well as their potential impact.

1. New Rates for Temporary Storage of Goods

• New rates depending on the weight of goods.
• For example, for goods weighing up to 3 tons, the rate is set at 1.5 times the base duty, while for goods weighing over 60 tons, it’s 25 times the base duty.

Impact: The costs of importing heavy cargo will increase. Companies need to review their logistics strategy. For instance, construction companies importing heavy equipment may face significant cost increases.

2. Special Rates for Vehicle Storage

• Higher rates apply from the 4th day of storage.
• For example, for vehicles classified under HS code 8703 (passenger cars), the rate is set at 5 times the base duty.

Impact: Vehicle importers and citizens importing personal-use vehicles should expedite the customs clearance process to avoid additional costs. For instance, if a passenger car remains in customs storage for 10 days, the fee will be 50 times the base duty (5 x 10 days).

3. New Prices for Customs Operations

• Rates for goods release depend on weight and type.
• New rates have been set for transit declarations.
• For example, for the release of goods weighing up to 3 tons, the rate is set at 5 times the base duty.

Impact: Costs for some operations will increase. Careful planning and/or budgeting is necessary. For example, small shops importing goods in small batches may see an increase in their costs.

4. New Service for Goods Examination

• A new service for examining the suitability and value of goods has been introduced.
• Separate rates for legal entities and individuals.
• For legal entities, the examination of one object costs 20 times the base duty, while for individuals, it’s 15 times.

Impact: Additional costs, but also an opportunity to avoid future problems. For example, when importing used cars, this service can help accurately assess the value and condition of the vehicle.

How to Prepare for the Changes

• Review your business plan and/or budget, taking into account potential new costs.
• Optimize storage periods of goods in customs warehouses.
• Consider the possibility of providing preliminary information.
• It’s beneficial to consult with lawyers and customs specialists.

Positive Changes

• Exported goods with a total value of up to 1 million drams are exempt from state duty. This can help small exporters and individual entrepreneurs.
• It’s important to know that in some cases, providing preliminary information can exempt from certain duties.

Sectoral Impact

• Automotive business: Importers may face higher costs, which could affect the final price.
• Construction: Potential increase in costs for importing heavy equipment may affect the budgets of construction projects.
• Retail trade: Increased costs for importing small batches of goods may affect the profitability of small shops.
• Export: Small exporters can benefit from the opportunity to be exempt from duty when exporting goods worth up to 1 million drams.

Conclusion

The new changes require careful planning and awareness. It’s necessary to familiarize yourself with the new requirements set by the RA Law on “Making Amendments and Additions to the Law on State Duty?” in a timely manner and adjust your actions accordingly. Both entrepreneurs and citizens should take into account these changes and additions to the law to avoid unexpected costs.

For additional information, you can familiarize yourself with the full text of the RA Law on “Making Amendments and Additions to the Law on State Duty.”

Remember that the material titled “Changes in Customs Duties from January 1, 2025: What Entrepreneurs and Citizens Need to Know?” prepared by Iravaban.net is solely for informational purposes and does not constitute legal advice. For legal advice, you can contact lawyers specializing in the field, and for additional information, contact the Customs Service of the RA State Revenue Committee.”