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Research by Country/Region January 21, 2018  
ARMENIA: CUSTOMS, TAXES, and DOCUMENTATION REQUIREMENTS: IT PRODUCTS and SERVICES IMPORTS

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A. Is this country a member of the Information Technology Agreement?

B. Customs documentation requirements for IT products

C. Software: duties and taxes, updates, licenses, electronically delivered

D. IT services: tax treatment and other regulations

E. Refurbished, used, or repaired computer equipment imports


A. IS THIS COUNTRY A MEMBER OF THE INFORMATION TECHNOLOGY AGREEMENT?
NO.
Signatories to the Information Technology Agreement (ITA) have eliminated their import duties on a wide range of information technology products, including software and computer hardware. For more information on the ITA, and exact tariff elimination schedules of signatories, click here.
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B. CUSTOMS DOCUMENTATION REQUIREMENTS FOR IT PRODUCTS

What are the documentation requirements for the physical import of software? For other information technology products?
For importing goods, an original invoice, and preferably (although not necessary) the certificate of origin for the imported goods should be presented.
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C. SOFTWARE: DUTIES and TAXES, UPDATES, LICENSES, ELECTRONICALLY DELIVERED

DUTIES AND TAXES ON SOFTWARE IMPORTS

Are duties assessed on the intellectual property of the software or on the medium on which is it presented?
Pursuant to article 85(d) of the Armenian Customs Code, the value of the information content of computer programs or software is not included in the customs value. The customs value of the importation is therefore limited to the value of the carrier media on which the computer program or software is stored (ie: cassette, CD, tape, etc.). This provision is in line with the treatment given by other countries in accordance with the WTO/GATT customs valuation agreement.

Are taxes assessed on the intellectual property of the software or on the medium on which is it presented?
Taxes are assessed only on the medium, regardless of content.

Is customized software treated differently than packaged software?
They are treated the same.
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IMPORTS OF SOFTWARE UPDATES

What are the customs duties and tax implications for software sold with updates when the full sales price, including cost of updates, is shown on the original commercial invoice? Are duties and taxes paid on that amount? What happens when the updates are sent at a later date? Are duties/taxes applied again? If so, based on what value? How should information presented on the commercial invoice for the original and subsequent shipments to avoid paying duties/taxes more than once on a single sale?
Updates shipped subsequently to the original importation would be valued for customs purposes in the same manner, and any applicable duties and taxes assessed accordingly. The fact that it is an "update" does not confer any exemption from duty and tax assessment, and if an update is sent at a later date, it is treated as an individual product, and the importer will have to pay import taxes for each update separately.
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SOFTWARE LICENSES: CUSTOMS CLASSIFICATION, IMPORT DUTIES, TAXES, OTHER

Are software licenses classified in Harmonized System 4907?
Software licenses are not classified in the HS.

Are import duties/taxes applied? If so, on what cost/price base are they levied?
Software licenses are not subject to duty/tax assessment upon importation into Armenia.

Are withholding or other additional taxes applied on software licenses? If yes, how?
No.

If a U.S. license agreement is included in the packaging or is part of the installation/registration of shrink-wrapped software imported from the United States, would that agreement be binding on consumers in your market? If so, would U.S. or local laws pertain?
Armenian intellectual property laws are fully in accord with the requirements of the WTO intellectual property rights agreement, and provide protection for foreign intellectual property rights to the extent that they are entitled to such rights in their home countries. Enforcement of these laws are questionable since there is no court practice to give us guidance as to what the attitude of state governmental entities would be. If the U.S. license agreement is included in the packaging of the installation/registration of shrink wrapped software, this agreement will be binding on consumers in Armenia. Local IPR laws pertain.
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SOFTWARE DELIVERED OVER THE INTERNET/ELECTRONICALLY DELIVERED SOFTWARE

Are taxes applied to software delivered to the end-user over the Internet? If so, on what value?
Taxes are not applied to software delivered to the end-user over the Internet.

Would the situation be different if this software were instead delivered to a distributor who has a license to produce (replicate) and sell the software?
No taxes or duties would apply for the download. If the distributor later duplicates and sells the software on CDs, the distributor would have to pay the appropriate taxes for selling the product, e.g., VAT, profit tax, etc.

What are the documentation requirements for the electronically delivered import of digitized products (i.e. software, movie downloads) over the Internet or other networks?
None.

Must an electronically delivered software import be accompanied by a physical shipment of the same product?
No.
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D. IT SERVICES: TAX TREATMENT AND OTHER REGULATIONS

Are services (i.e. training, set-up, etc) relating to the sale of software taxed? If so, at what rate and based on what value?
Pursuant to article 85(e) of the Armenian Customs Code, if the cost of such services is included in the price paid or payable for the goods, such costs are included in the customs value of the goods (and assessed the duty and taxes applicable to the goods). However, if such costs are not included in the price paid or payable for the goods, no assessment of duty or taxes will apply to those costs.

Are U.S. IT solution providers permitted to send personnel into the country to set up hardware/software-related systems?
U.S. information technology solution providers are permitted to send personnel to the country to set up hardware/software related systems.

Are special visa, work permits, and/or professional certification by an accredited body required?
No special visas/work permits and / or professional certification by an accredited body are required.
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E. REFURBISHED, USED, OR REPAIRED COMPUTER EQUIPMENT IMPORTS

1. REFURBISHED COMPUTER EQUIPMENT
Is the import of refurbished computer hardware, parts, and accessories (including toner cartridges) permitted? If so, what are the documentation requirements?
Armenian tax legislation and customs procedures do not differentiate between new, refurbished or used computers. Therefore, all procedures, taxes, and customs fees applied to imports of new computer hardware, parts, and accessories apply to refurbished and used computer hardware, parts, and accessories.

Is special labeling required?
No special labeling is required.

What value should be shown on the invoice?
According to article 81 of the customs code, the invoice should indicate the transaction price in the exporting country.

How are duties and taxes assessed?
See answer to E.1. above.
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2. USED COMPUTER EQUIPMENT
Is the import of used computer hardware, parts, and accessories (including toner cartridges) permitted?
Same as for refurbished equipment. See answers in E.1. above.
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3. REPAIRED COMPUTER EQUIPMENT
Are duties and taxes assessed on the re-import of repaired computer equipment?
The Customs Code of Armenia allows organizations to export and import goods under temporary export and temporary import regimes. Goods temporarily exported or imported are not subject to any customs payments or non-tariff regulations except the customs fee. Temporary export or import may be made for no longer than one year.

How should the commercial invoice appear?
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RESPONSE INFORMATION

This response was prepared by the U.S. Department of Commerce/Commercial Service in Yerevan, Armenia, in May and June 2003. For further clarification please contact:
Mher Avetyan
Commercial Specialist
U.S. Embassy, Armenia
mher.avetyan@mail.doc.gov
Phone: (374-1) 521-611, 524-661
Fax: (374-1) 520-800
Cell phone: (374-9) 423-735
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This Q&A Survey is provided by the U.S. Department of Commerce's Business Information Service for the Newly Independetn States (BISNIS) office, for informational purposes only. This is not a comprehensive look at the customs regulations and import duties for Armenia. For more information on Armenia and/or its information technology sector see the BISNIS website.
***********************************************************************
For additional information on Armenia contact:
Melissa Walters
BISNIS Trade Specialist
(202) 482-2047
Melissa_Walters@ita.doc.gov

For additional information on the telecom sector in Armenia contact:
Trevor Gunn
Director, Washington, DC
(202) 482-4656
Trevor_Gunn@ITA.doc.gov

For additional information on certification issues contact:
Michael Considine
BISNIS Trade Specialist, BISNIS Search for Partners Managing Editor
202-482-4522
Michael_Considine@ITA.doc.gov

Special Notes: The above information is intended to serve only as unofficial guidance. In seeking to obtain government rulings in specific cases, it will often be necessary to refer to special laws, separate regulations and announcements, and case-by-case decisions by the government. Beyond the general guidelines shown above, legal counsel should be retained at an early stage of consummation of a major procurement contract, and before entering into any legal commitments.

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